SEC Y2K disclosures and the Retail Corps.greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
Here are some comments from Retail Corps. disclosures.
Also the previous threads with the latest Y2K disclosures.
SEC y2k Disclosures and the Health Industries. (Quotes)
SEC Y2K Disclosures Oil Industry (Quotes)
Recent SEC 10 - Q Y2K disclosures (Categorized)
PHILIP MORRIS COMPANIES INC (MO)
This initial evaluation is complete, although the monitoring and reassessment of certain Key Business Partners continues. With the exception of certain utilities and governmental entities (particularly outside the United States), the Company currently believes that the vast majority of Key Business Partners are making acceptable progress toward Year 2000 readiness and, in general, should be able to provide required goods and services without material disruptions. However, as of June 30, 1999, the Company considered approximately 700 of its more than 6,000 Key Business Partners to be higher risk, or likely to suffer some Year 2000 related failures, of which approximately 600 are located outside the United States. As discussed below, contingency plans are being developed that seek to address these higher risk Key Business Partners.
Contingency plans fall into two categories: "event-triggered" and "preemptive." Event-triggered plans are those that are implemented in response to actual Year 2000 events or disruptions as they arise, whereas preemptive strategies are those that are implemented in advance of 2000 in order to avoid or minimize the impact of anticipated or potential Year 2000 problems. The Company's event-triggered and preemptive contingency plans include stockpiling raw, packaging and promotional materials; increasing finished goods inventories at the operating company, wholesale and retail levels; adjusting the timing of promotional programs; securing alternate sources of supply, distribution and warehousing; adjusting facility shut-down and start-up schedules; utilizing manual workarounds; procuring back-up power generators and heat supply for key plants; and other appropriate measures. The Company estimates that the anticipated increases in year-end inventories and trade receivables contemplated by the Company's preemptive contingency plans will likely result in incremental cash outflows during 1999 of approximately $600 million, which should be reversed in early 2000.
WAL MART STORES INC (WMT)
The Company anticipates minimal business disruption will occur as a result of Year 2000 issues; however, possible consequences include, but are not limited to, loss of communications links with certain store locations, loss of electric power, inability to process transactions, send purchase orders, or engage in similar normal business activities. In addition, since there is no uniform definition of Year 2000 compliance and not all customer situations can be anticipated, the Company may experience an increase in sales returns of merchandise that may contain hardware or software components that are not year 2000 compliant.
EASTMAN KODAK CO - Quarterly Report (SEC form 10-Q)
These remediation efforts, almost entirely for software, will not materially increase the Company's spending on information technology because some normal development and maintenance work has been postponed. Furthermore, some non-compliant systems will be eliminated in 1999 as the Company installs Year 2000 compliant globally deployed ERP/SAP software in connection with its enterprise resource planning project.
he company has surveyed its key suppliers to understand their plans to address
the Year 2000 problem. The company will continue monitoring its suppliers to
determine the availability of components and raw materials as the millennium
approaches; however, suppliers could have significant Year 2000 problems that
could adversely affect the company. The company has established business teams
in each of its regions around the world to refine contingency plans that may be
necessary for this issue, particularly with regard to delays that may occur with
supplier orders and the corresponding need to recommend possible increases in
inventories of raw materials, parts, and finished product. Additionally,
building and equipment infrastructure compliance is still being assessed.
Although the company believes that it can address Year 2000 readiness issues
related to its operations, there still may be disruptions that are unforeseen.
These issues create risks for the entire business community with a wide range of
opinions on the effect of the Year 2000 issue on the overall global economy.
The effect of the problem on transportation systems, public utilities, and
government agencies, among others, are risks that cannot be adequately assessed
or addressed to eliminate the risk of the Year 2000 issue for the company. As a
result, while it is difficult for the company to appraise the likelihood, or the
impact on its business, of the risks of the Year 2000 problem, the company does
not believe its risks are greater than or different from other companies with
SEARS ROEBUCK & CO (S) form 10-Q
The Company had rated its vendors on a scale of green (on target to be compliant by July 1), yellow (on target to be compliant by July 1 but minor concerns about progress) and red (not on target to be compliant by July 1). The Company has performed site visits of all of its first tier vendors (50% of merchandise sales), and has performed follow-up site visits on certain first tier vendors that had been rated yellow or red. In addition, the Company has performed site visits on 32 second tier vendors (approximately 6% of merchandise sales), including all those that had been rated red or that were among the higher volume second tier vendors with yellow or green ratings. The Company has completed telephone conferences with all second tier vendors.
The Company now rates its vendors as either green or red. The green category consists of vendors that have represented to the Company that they were compliant, including the development of contingency plans, subject to the possible failure of the vendor's third party providers. The green category also includes vendors in the third tier that reported that they would be compliant by August 1, 1999. The Company recently requested from all such third tier vendors confirmation that they met their projected compliance dates. All other vendors are rated in the red category. As of August 2, 1999, three first tier vendors (approximately 5% of merchandise sales), five second tier vendors (approximately 1% of merchandise sales) and 197 third tier vendors (approximately 2% of merchandise sales) were rated in the red category. The Company continues to monitor vendors rated in the red category, including reviewing follow-up progress reports, reviewing vendors' filings with the Securities and Exchange Commission (first and second tier only) and conducting electronic data interchange testing. The Company also plans additional site visits to selected vendors rated in the red category.
TANDY CORP /DE/ - Quarterly Report (SEC form 10-Q)
With respect to non-IT system issues, Tandy has identified and assessed its significant building and process and production control systems for any year 2000 issues relating to the operations of its facilities. Identification and assessment of security access, building control systems and elevators in the buildings which serve as Tandy's corporate headquarters have been completed. Approximately 95% have either been certified by the vendor or manufacturer or determined by other evaluation methods to be year 2000 ready at June 30, 1999. Tandy has also identified and assessed non-IT year 2000 issues of its remote locations, such as its distribution centers, manufacturing plants, and administrative offices, and has taken appropriate action to ensure year 2000 readiness. All of Tandy's significant non-IT systems are expected to be year 2000 ready or appropriate workarounds and contingency plans in place by October 1999.
Tandy has catalogued and identified RadioShack branded products it has sold since 1993 which have a time and/or date function. A listing of these products and their functionality subsequent to January 1, 2000, if known to RadioShack through its evaluation, is available at the web site: www.radioshack.com. Since the fourth quarter of 1996, RadioShack has required correct date manipulation for any new RadioShack products with date and time functions that are cognizant of the year, and has adopted related testing and evaluation procedures.
(This is interesting, a major corp mentioning the FRS. Brian)
Tandy has limited the scope of its risk assessment to those factors upon which it can reasonably be expected to have an influence. For example, Tandy has made the assumption that financial institutions and the Federal Reserve System, as well as most utility companies and national telecommunications providers, will continue to operate. The lack of such services could have a material effect on Tandy's ability to operate, but Tandy has little, if any, ability to influence such an outcome, or to reasonably make alternative arrangements in advance for such services in the event they are unavailable.
REEBOK INTERNATIONAL LTD - Quarterly Report (SEC form 10-Q)
The Company believes that, with modifications to existing software and converting to SAP software and other packaged software, the year 2000 will not pose significant operational problems for the Company's computer systems. However, if the modifications and conversions are not implemented or completed in a timely or effective manner, the year 2000 problem could have a material adverse impact on the operations and financial condition of the Company. In addition, in converting to SAP software, the Company is relying on its software partner to develop and support new software applications and there could be problems in successfully developing and implementing such new applications. The Company is the first in the apparel and footwear industry to begin to implement this new software application. Thus there are substantial risks that problems could arise in implementation or that the system may not be fully effective by the end of 1999.
The SAP system has been installed and implementation has been substantially completed in a number of the Company's business units, as well as, in certain other functional areas. These units have experienced certain technical difficulties with the SAP system resulting in processing delays and selected integrity of information issues. The Company, together with its software partner, has substantially remedied these deficiencies. Accordingly, the Company has decided to continue to implement the SAP system in certain of its operating units during 1999. However, because of the technical difficulties with the SAP system and the delays resulting therefrom, the Company has decided to delay full implementation of the SAP system in its North American operating unit until after January 2000. For its North American operating unit, the Company is, instead, proceeding with its contingency plan to modify existing software to make it year 2000 compliant. The Company has already modified existing software to process customer orders and purchase orders for the year 2000, and has been processing such orders. Other software systems for the North American operating unit still need to be modified to make them year 2000 compliant.
-- Brian (email@example.com), August 16, 1999
-- R (firstname.lastname@example.org), August 16, 1999.
NEWELL RUBBERMAID INC - Quarterly Report (SEC form 10-Q)
The Company's project is approximately 90% complete with all phases for
its IT systems and 80% complete for its non-IT systems in the United States
and Canada. The Company anticipates that all phases will be completed for
all IT and non-IT systems in the United States and Canada by November
30, 1999. With respect to International IT systems, approximately 75% of
the Company's business systems are currently compliant and approximately
25% are in the process of being fixed and tested. With respect to
International non-IT systems, approximately 80% of the Company's non-IT
systems are currently compliant and 20% are in the process of being fixed
and tested. The Company anticipates that all phases will be completed for all
foreign IT and non-IT systems by November 30, 1999.
As part of its Year 2000 project, the Company has initiated communications
with all of its key vendors and services suppliers (including raw material
and utility providers) to assess their state of Year 2000 readiness. Most of
its key vendors and service suppliers have responded in writing to the
Company's Year 2000 readiness inquiries and have said they will be Year
The Company plans to continue assessment of its third party business
partners, including face-to-face meetings with management and/or onsite
visits as deemed appropriate. The Company is prepared in cases where its
main vendor or service provider cannot continue with its business due to
Year 2000 problems to use alternate vendors as sources for required
materials. Despite the Company's efforts, there can be no guarantee that the
systems of other companies which the Company relies upon to conduct its
day-to-day business will be compliant.
-- Brian (email@example.com), August 16, 1999.