Mondelez 2013 Annual Report Download - page 20

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. Our contributions to a multi-employer plan may increase beyond our bargaining
obligations depending on the financial condition of the multi-employer plan. 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. Further, if we have
a partial or complete withdrawal from a multi-employer pension plan, we may be required to pay an amount to the plan based on
our allocable share of the underfunded status of the plan. This liability will generally increase if other employers cease participating
in the plan whether or not due to bankruptcy. (See Note 10, Benefit Plans , to the consolidated financial statements for more
information.)
A significant increase in our pension funding requirements could have a negative impact on our ability to invest in the business and
adversely affect our financial condition and results of operations.
We may be unable to hire or retain and develop key personnel or a highly skilled and diverse global workforce or manage
changes in our 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. 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 with the skills we need to operate and grow our business, could deplete our institutional knowledge base and erode our
competitive advantage. In addition, increased costs due to increased competition for employees, higher employee turnover or
increased employee benefit costs could adversely affect our results of operations. Furthermore, if we are unable to manage
changes in our workforce appropriately or satisfy the legal requirements associated with how we manage and compensate our
employees, our reputation, ability to meet the needs of our customers, product sales, financial condition and results of operations
may be adversely affected.
Our intellectual property rights are valuable, and our 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 by taking advantage of a combination of patent, trademark, copyright and trade secret laws in various countries, 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 intellectual property rights, 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 pay monetary damages or enter into costly license agreements. We also may be subject to injunctions against
development and sale of certain of our products. Any of these occurrences could materially and adversely affect our reputation,
product sales, financial condition and results of operations.
Item 1B. Unresolved Staff Comments.
Not applicable.
Item 2. Properties.
On December 31, 2013, we had 171 manufacturing and processing facilities located in 58 countries. We own 160 and lease 11 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 220 distribution centers and depots worldwide. We own 54 and lease 166 of these distribution centers and depots.
These facilities are in good condition. We believe they have sufficient capacity to meet our near-term distribution needs.
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