Kraft 2009 Annual Report Download - page 17

Item 1B. Unresolved Staff Comments.
We have received no written comments regarding our quarterly, annual or current reports from the staff of the SEC that remain unresolved.
Item 2. Properties.
We have 159 manufacturing and processing facilities worldwide. In North America, we have 54 facilities, and outside of North America, we have
105 facilities located in 44 countries. These manufacturing and processing facilities are located throughout the following territories:
Territory
Number of
Facilities
U.S. 46
Canada 8
Western Europe 42
Central & Eastern Europe, Middle East
and Africa 30
Latin America 15
Asia Pacific 18
Total 159
We own 152 and lease 7 of these manufacturing and processing facilities. It is our practice to maintain all of our plants and properties in good
condition, and we believe they are suitable and adequate for our present needs.
We have publicly announced, but not yet completed, the sale or closure of two facilities in Central & Eastern Europe, Middle East and Africa, one
facility in Latin America and two facilities in Asia Pacific. The numbers above include these facilities.
We also have 313 distribution centers and depots worldwide. We own 38 of these distribution centers and 3 of these depots, and we lease 124 of
these distribution centers and 148 of these depots. In North America, we have 298 distribution centers and depots, more than 75% of which
support our direct store delivery systems. Outside North America, we have 15 distribution centers in 10 countries.
These facilities are in good condition, and we believe they have sufficient capacity to meet our distribution needs in the near future. As this
disclosure was made as of December 31, 2009, it does not reflect the impacts of our recent acquisition and divestiture activity.
Item 3. Legal Proceedings.
We routinely are involved in legal proceedings, claims, and governmental inspections or investigations (“Legal Matters”) arising in the ordinary
course of our business.
Competition authorities in the European Union have opened various investigations into possible anticompetitive activity in the fast moving
consumer goods (“FMCG”) sector, which includes products such as chocolate and coffee. In Germany, the Federal Cartel Office (“FCO”) is
investigating a number of FMCG companies, including Kraft Foods. We are cooperating and in contact with the FCO. At this time, we cannot
predict with certainty the course or the outcome of these investigations.
Currently, we do not believe that the ultimate costs to resolve any of the Legal Matters will have a material effect on our financial results.
Item 4. Submission of Matters to a Vote of Security Holders.
No matters were submitted to a vote of security holders during the fourth quarter of 2009.
14
Source: KRAFT FOODS INC, 10-K, February 25, 2010 Powered by Morningstar® Document Research℠