Kraft 2012 Annual Report Download - page 21

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Item 2. Properties.
Our corporate headquarters are located in Northfield, Illinois. Our headquarters are leased and house our executive
offices, certain U.S. business units, and our administrative, finance, and human resource functions. We maintain additional
owned and leased offices and three technology centers in the United States and Canada.
We have 37 manufacturing and processing facilities in the United States and three in Canada. We own all 40 of these
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 also have 39 distribution centers in the United States and three in Canada. We own four and lease 38 of these
distribution centers. These facilities are in good condition, and we believe they have sufficient capacity to meet our
distribution needs in the near term.
Item 3. Legal Proceedings.
We are routinely involved in legal proceedings, claims, and governmental inspections or investigations (“Legal Matters”)
arising in the ordinary course of our business.
On March 1, 2011, the Starbucks Coffee Company (“Starbucks”) took control of the Starbucks packaged coffee business
(“Starbucks CPG business”) in grocery stores and other channels. Starbucks did so without our authorization and in what
we contend is a violation and breach of our license and supply agreement with Starbucks related to the Starbucks CPG
business. The dispute is in arbitration in Chicago, Illinois. While we remain the named party in the proceeding, under the
Separation and Distribution Agreement between Mondele¯z International and us, we will direct any recovery we are
awarded in the arbitration proceeding to Mondele¯z International. Mondele¯ z International will reimburse us for any costs
and expenses we incur in connection with the arbitration.
While we cannot predict with certainty the results of our dispute with Starbucks or any other Legal Matters in which we are
currently involved or may in the future be involved, we do not expect that the ultimate costs to resolve any of the Legal
Matters that are currently pending will have a material adverse effect on our financial results.
Item 4. Mine Safety Disclosures
Not applicable.
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