Sysco 2015 Annual Report Download - page 13
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Please find page 13 of the 2015 Sysco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.SYSCO CORPORATION-Form10-K 5
PARTI
ITEM1ARisk Factors
We and our products are also subject to state and local regulation through such measures as the licensing of our facilities; enforcement by state and local
health agencies of state and local standards for our products; and regulation of our trade practices in connection with the sale of our products. Our facilities
are subject to regulations issued pursuant to the U.S. Occupational Safety and Health Act by the U.S. Department of Labor. These regulations require
us to comply with certain manufacturing, health and safety standards to protect our employees from accidents and to establish hazard communication
programs to transmit information on the hazards of certain chemicals present in products we distribute.
We are also subject to regulation by numerous federal, state and local regulatory agencies, including, but not limited to, the U.S. Department of Labor, which
sets employment practice standards for workers, and the U.S. Department of Transportation, which regulates transportation of perishable and hazardous
materials and waste, and similar state, provincial and local agencies. In addition, we are also subject to the U.S. False Claims Act, and similar state statutes,
which prohibit the submission of claims for payment to the government that are false and the knowing retention of overpayments.
The U.S. Foreign Corrupt Practices Act (FCPA) prohibits bribery of public of cials to obtain or retain business in foreign jurisdictions. The FCPA also requires
us to keep accurate books and records and to maintain internal accounting controls to detect and prevent bribery and to ensure that transactions are
properly authorized. We have implemented and continue to develop a robust anti-corruption compliance program applicable to our global operations to
detect and prevent bribery and to comply with these and other anti-corruption laws in countries where we operate.
Outside the U.S., our business is subject to numerous similar statutes and regulations, as well as other legal and regulatory requirements.
All of our company’s facilities and other operations in the U.S. and elsewhere around the world are subject to various environmental protection statutes and
regulations, including those relating to the use of water resources and the discharge of wastewater. Further, most of our distribution facilities have ammonia-
based refrigeration systems and tanks for the storage of diesel fuel and other petroleum products which are subject to laws regulating such systems and
storage tanks. Our policy is to comply with all such legal requirements. We are subject to other federal, state, provincial and local provisions relating to
the protection of the environment or the discharge of materials; however, these provisions do not materially impact the use or operation of our facilities.
General
We have numerous trademarks that are of signi cant importance, including the SYSCO
®
trademark and our privately-branded product trademarks that
include the SYSCO® trademark. These trademarks and the private brands on which they are used are widely recognized within the foodservice industry.
Approximately half of our privately-branded sales are from products labeled with our SYSCO
®
trademark without any other trademark. We believe the loss
of the SYSCO® trademark would have a material adverse effect on our results of operations. Our U.S. trademarks are effective for a ten-year period and
the company generally renews its trademarks before their expiration dates unless a particular trademark is no longer in use. The company does not have
any material patents or licenses.
We are not engaged in material research and development activities relating to the development of new products or the improvement of existing products.
Our sales do not generally uctuate signi cantly on a seasonal basis; therefore, the business of the company is not deemed to be seasonal.
As of June 27, 2015, we operated 197 distribution facilities throughout the U.S., Bahamas, Canada, and Ireland. We have interests in joint venture operations
in Costa Rica and Mexico.
ITEM1A Risk Factors
The following discussion of “risk factors” identi es the most signi cant factors that may adversely affect our business, operations, nancial position or future
nancial performance. This information should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of
Operations and the consolidated nancial statements and related notes contained in this report. The following discussion of risks is not all inclusive, but
is designed to highlight what we believe are the most signi cant factors to consider when evaluating our business. These factors could cause our future
results to differ from our expectations expressed in the forward-looking statements identi ed within “Management’s Discussion and Analysis of Financial
Condition and Results of Operations,” and from historical trends.