Kraft 2004 Annual Report Download - page 13

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The Company makes available free of charge on or through its website (www.kraft.com) its Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments
to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of
1934, as amended, as soon as reasonably practicable after it electronically files such material with, or
furnishes the material to, the SEC. Investors can also access the Company’s filings with the SEC by
visiting http://ir.ccbn.com/ir.zhtml?t=kft&s=1901. The information on the Company’s website is not, and
shall not be deemed to be, a part of this Report or incorporated into any other filings the Company
makes with the SEC.
Item 2. Properties.
The Company has 192 manufacturing and processing facilities worldwide. In North America, the
Company has 87 facilities, and outside of North America there are 105 facilities located in 44 countries.
These manufacturing and processing facilities are located throughout the following territories:
Number
of
Territory Facilities
United States ................................................. 67
Canada ..................................................... 20
Western Europe ............................................... 39
Central and Eastern Europe, Middle East and Africa ..................... 21
Latin America ................................................ 28
Asia Pacific .................................................. 17
Total ..................................................... 192
The Company owns 181 and leases 11 of these manufacturing and processing facilities. All of the
Company’s plants and properties are maintained in good condition, and the Company believes that they
are suitable and adequate for its present needs.
Included in the facilities above are sugar confectionery manufacturing facilities in Creston, IA,
Chattanooga, TN, Brasov, Romania and Bridgend, United Kingdom that are part of the sale of the sugar
confectionery business that is expected to be completed in the second quarter of 2005. Also included in
the facilities above are facilities the closure or sale of which has been publicly announced but has not yet
been completed.
As of December 31, 2004, the Company’s distribution facilities consisted of 356 distribution centers
and depots worldwide. In North America, the Company had 331 distribution centers and depots, more
than 75% of which support the Company’s direct-store-delivery systems. Outside North America, the
Company had 25 distribution centers in nine countries. The Company owns 52 of these distribution
centers and two of these depots and leases 148 of these distribution centers and 154 of these depots.
The Company believes that all of these facilities are in good condition and have sufficient capacity to
meet the Company’s distribution needs for the foreseeable future.
In January 2004, the Company announced a three-year restructuring program. As part of this
program, the Company anticipates the closing or sale of up to 20 plants. In 2004, the Company
announced the closing of 13 plants as part of the restructuring program.
Item 3. Legal Proceedings.
Legal Proceedings
The Company is party to a variety of legal proceedings arising out of the normal course of business,
including the matters discussed below. While the results of litigation cannot be predicted with certainty,
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