Proctor and Gamble 2015 Annual Report Download - page 19

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17 The Procter & Gamble Company
Our usiness results deend on our ailit to successfull
manage ongoing organiational change.
Our financial targets assume a consistent level of productivity
improvement, including those described in our announced
productivity plan and our portfolio-optimization strategy. If
we are unable to deliver these expected productivity
improvements, while continuing to invest in business growth,
our financial results could be adversely impacted. e expect
these types of changes, which will include staffing adjustments
as well as employee departures, to continue for the foreseeable
future. Successfully executing these changes, including
effective management transitions at leadership levels of the
Company and retention of key employees, is critical to our
business success. e are generally a build-from-within
company and our success is dependent on identifying,
developing and retaining key employees to provide
uninterrupted leadership and direction for our business. This
includes developing and retaining organizational capabilities
in key growth markets where the depth of skilled or experienced
employees may be limited and competition for these resources
is intense. It also includes continued development and
execution of robust leadership succession plans, including
successful execution of our recently announced CEO
transition.
Item 1. Unresolved Staff Comments.
None.
Item 2. Properties.
In the U.S., we own and operate 29 manufacturing sites located
in 21 different states or territories. In addition, we own and
operate 100 manufacturing sites in 38 other countries. Many
of the domestic and international sites manufacture products
for multiple businesses. eauty, Hair and Personal Care
products are manufactured at 37 of these locations Grooming
products at 18 Health Care products at 16 Fabric Care and
Home Care products at 50 and aby, Feminine and Family
Care at 43. Management believes that the Company's
manufacturing sites are adequate to support the business and
that the properties and equipment have been well maintained.
Item 3. Legal Proceedings.
On February 10, 2015, the Sacramento County Environmental
Management Department (Sacramento EMD) issued an
Administrative Enforcement Order to The Procter & Gamble
Manufacturing Company, a subsidiary of the Company,
alleging violations of Californias hazardous waste
management regulations at the subsidiarys facility in
Sacramento, California. On May 26, 2015, the subsidiary and
Sacramento EMD agreed to a Final Stipulation and Order that
includes no admission of liability, a release of all claims against
the subsidiary, a $200,000 fine assessed against the subsidiary,
and an agreement by the subsidiary to make certain plant
modifications and have a third party conduct an integrity
assessment of certain hazardous waste systems at its
Sacramento, California facility.
On August 25, 2014, Procuradura Federal de Proteccin al
Ambiente (PROFEPA) issued a ruling to Procter & Gamble
Manufactura, S. de R.L. de C.. (Planta allejo), a subsidiary
of the Company, citing violations of Mexicos air emissions
regulations at the subsidiarys facility in ona Industrial
allejo, Mexico City, Mexico and requiring the subsidiary to
perform certain corrective measures at the facility, most of
which have been completed. On June 15, 2015, PROFEPA
issued a final ruling to the subsidiary imposing monetary
sanctions of $133,000. The proceedings are still pending as
PROFEPA reviews compliance with additional terms of the
subsidiarys environmental licenses.
The Company is subject, from time to time, to certain other
legal proceedings and claims arising out of our business, which
cover a wide range of matters, including antitrust and trade
regulation, product liability, advertising, contracts,
environmental issues, patent and trademark matters, labor and
employment matters and tax. See Note 11 to our Consolidated
Financial Statements for information on certain legal
proceedings for which there are contingencies.
This item should be read in conjunction with the Company's
Risk Factors in Part I, Item 1A for additional information.
Item 4. Mine Safety Disclosure.
Not applicable.