Risk Factors:
−Removed: The Company’s investment portfolio may suffer losses from changes in market interest rates and changes in market conditions which could adversely affect results of operations and liquidity.
−Removed: The Company’s marketable securities consist of corporate and municipal bonds, commercial paper and equity securities.
−Removed: These investments are subject to general credit, liquidity, market and interest rate risks.
−Removed: As a result, the Company may experience a reduction in value or loss of liquidity from investments, which may have a negative impact on the Company’s financial condition and results of operations.
−Removed: Unexpected factors affecting self-insurance claims and reserve estimates could adversely affect the Company.
−Removed: The Company uses a combination of insurance and self-insurance to provide for potential liabilities for workers’ compensation, general liability, vehicle accident, property and associate medical benefit claims.
−Removed: Management estimates the liabilities associated with the risks retained by the Company, in part, by considering historical claims experience, demographic and severity factors and other actuarial assumptions which, by their nature, are subject to a high degree of variability.
−Removed: Any projection of losses concerning workers’ compensation and general liability is subject to a high degree of variability.
−Removed: Among the causes of this variability are unpredictable external factors affecting future inflation rates, litigation trends, legal interpretations, benefit level changes and claim settlement patterns.
−Removed: Information Security, Cybersecurity and Data Privacy Risks
−Removed: Disruptions or cybersecurity breaches in the Company’s information technology systems could adversely affect results of operations.
−Removed: The Company’s business is highly dependent on complex information technology systems that are vital to its continuing operations.
−Removed: If the Company was to experience difficulties maintaining existing systems or implementing new systems, significant losses could be incurred due to disruptions in its operations.
−Removed: Additionally, these systems contain valuable proprietary data as well as receipt and storage of personal information about its associates and customers, in particular electronic payment data and personal health information that, if breached, would have an adverse effect on the Company.
−Removed: Such an occurrence could adversely affect the Company’s reputation with its customers, associates, and vendors, as well as the Company’s financial condition, results of operations, and liquidity with potential litigation against the Company or the imposition of penalties.
−Removed: Supply Chain and Third-Party Risks
−Removed: The Company is affected by certain operating costs which could increase or fluctuate considerably.
−Removed: Associate expenses contribute to the majority of the Company’s operating costs.
−Removed: The Company’s financial performance is potentially affected by increasing wage and benefit costs, a competitive labor market, regulatory wage increases and the risk of unionized labor disruptions of its non-union workforce.
−Removed: The Company’s profit is particularly sensitive to the cost of oil.
−Removed: Oil prices directly affect the Company’s product transportation costs, as well as its utility and petroleum-based supply costs.
−Removed: It also affects the costs of its suppliers, which impacts its cost of goods.
Changes in vendor promotions or allowances, including the way vendors target their promotional spending, and the Company’s ability to effectively manage these programs could significantly impact margins and profitability.
3 unchanged sentences
A reduction in overall promotional spending or a shift by vendors in promotional spending away from certain types of promotions that the Company and its customers have historically utilized could have a significant impact on profitability.
−Removed: WEIS MARKETS, INC.
−Removed: Risk Factors:
Legal, Regulatory and Other External Risks
2 unchanged sentences
Changes in economic and social conditions in the Company’s operating regions, including fluctuations in the inflation rate along with changes in population and employment and job growth rates and changes in government benefits such as SNAP/EBT or child care credits, affect customer shopping habits.
−Removed: Business disruptions due to weather and catastrophic events historically have been few.
+Added: Business disruptions due to weather and catastrophic events may also affect our business.
The Company’s geographic regions could receive an extreme variance in the amount of annual snowfall that may materially affect sales and expense results.
21 unchanged sentences
The risks and uncertainties surrounding the coronavirus pandemic, as well as any future pandemics, are broad.
−Removed: however, below is a list of risks management is monitoring which could have a material impact on the Company’s business:
−Removed: ● Employees – Reduced workforces due to the temporary inability to work caused by illness, quarantine, or government mandates.
−Removed: ● Supply Chain – Interruption in the Company’s supply chain due to the novel coronavirus.
−Removed: ● Lawsuits – Future litigation arising from issues concerning the novel coronavirus.
−Removed: ● Future government regulation – Future laws, regulations, interpretations, administrative orders, or applications that may have an adverse impact on the Company’s financial condition and liquidity.
−Removed: ● Customer trends – Changes in the methods in which customers procure the Company’s products.
−Removed: ● Cyber security – Increased cyber-attacks due to “work at home” requirements.
−Removed: Unresolved Staff Comments:
−Removed: There are no unresolved staff comments.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.