Mondelez 2012 Annual Report Download - page 18

Table of Contents
Due to our participation in multi-employer pension plans, we may have exposure under those plans that extends beyond what our
obligation would be with respect to our employees. If a participating employer ceases its contributions to the plan, as a result of a
bankruptcy or otherwise, such as in the case of Hostess Brands’
bankruptcy which we are currently evaluating, we may be required
to participate in funding the unfunded obligations of the plan allocable to the withdrawing employer and our costs might increase as
a result. (See Note 10, Benefit Plans , to the consolidated financial statements for more information). Further, if we withdraw from a
multi-employer pension plan, we may be required to pay those plans an amount based on our allocable share of the underfunded
status of the plan.
A significant increase in our pension funding requirements could have a negative impact on our ability to invest in the business.
We may be unable to hire or retain and develop key personnel or a highly skilled and diverse global workforce.
Our continued growth requires us to hire, retain and develop our leadership bench and a highly skilled and diverse global
workforce. We compete to hire new personnel and then to develop and retain their skills and competencies. Any unplanned
turnover or our failure to develop an adequate succession plan to backfill current leadership positions, or to hire and retain a
diverse global workforce could deplete our institutional knowledge base and erode our competitive advantage. In addition, our
operating results could be adversely affected by increased costs due to increased competition for employees, higher employee
turnover or increased employee benefit costs.
Our intellectual property rights are valuable, and any inability to protect them could reduce the value of our products and
brands.
We consider our intellectual property rights, particularly and most notably our trademarks, but also our patents, trade secrets,
copyrights and licensing agreements, to be a significant and valuable aspect of our business. We attempt to protect our intellectual
property rights through a combination of patent, trademark, copyright and trade secret laws, as well as licensing agreements, third
party nondisclosure and assignment agreements and policing of third party misuses of our intellectual property. Our failure to obtain
or adequately protect our trademarks, products, new features of our products, or our technology, or any change in law or other
changes that serve to lessen or remove the current legal protections of our intellectual property, may diminish our competitiveness
and could materially harm our business.
We may be unaware of intellectual property rights of others that may cover some of our technology, brands or products. Any
litigation regarding patents or other intellectual property could be costly and time-consuming and could divert management’s and
other key personnel’s attention from our business operations. Third party claims of intellectual property infringement might also
require us to enter into costly license agreements. We also may be subject to significant damages or injunctions against
development and sale of certain of our products. Any of these occurrences could materially and adversely affect our financial
condition and results of operations.
Item 1B. Unresolved Staff Comments.
Not applicable.
Item 2. Properties.
On December 31, 2012, we had 171 manufacturing and processing facilities located in 56 countries. We own 162 and lease 9 of
these manufacturing and processing facilities. It is our practice to maintain all of our plants and properties in good condition. We
believe they are suitable and adequate for our present needs.
We also had 173 distribution centers and depots worldwide. We own 44 of these distribution centers and depots, and we lease 129
of these distribution centers and depots. These facilities are in good condition. We believe they have sufficient capacity to meet our
distribution needs in the near term.
These facilities are located by segment as follows:
15
Number of
Manufacturing
Facilities
Number of
Distribution
Facilities
Developing Markets
95
61
Europe
59
22
North America
17
90
Total
171
173