Snapple 2008 Annual Report Download - page 42

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ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
United States. As of December 31, 2008, we owned or leased 223 administrative, manufacturing, and
distribution facilities across the United States. Our principal offices are located in Plano, Texas, in a facility that we
own. We also lease an office in Rye Brook, New York. Our Bottling Group owns 14 manufacturing facilities, 57
distribution centers and warehouses, and three office buildings, including our headquarters. They also lease six
manufacturing facilities, 130 distribution centers and warehouses, and 12 office buildings.
Mexico and Canada. As of December 31, 2008, we leased seven office facilities throughout Mexico and
Canada, including our Mexico and Caribbean operations’ principal offices in Mexico City. We own three
manufacturing facilities and one joint venture manufacturing facility and we have 23 additional direct distribution
centers, four of which are owned and 19 of which are leased, in Mexico which are all included in our Mexico and
Caribbean operating segment. Our manufacturing facilities in the United States supply our products to bottlers,
retailers and distributors in Canada.
We believe our facilities in the United States and Mexico are well-maintained and adequate, that they are being
appropriately utilized in line with past experience, and that they have sufficient production capacity for their present
intended purposes. The extent of utilization of such facilities varies based on seasonal demand of our products. It is
not possible to measure with any degree of certainty or uniformity the productive capacity and extent of utilization
of these facilities. We periodically review our space requirements, and we believe we will be able to acquire new
space and facilities as and when needed on reasonable terms. We also look to consolidate and dispose or sublet
facilities we no longer need, as and when appropriate.
New Facilities. We plan to build a new manufacturing and distribution facility in Victorville, California, that
will operate as our western hub in a regional manufacturing and distribution footprint serving consumers in
California and parts of the desert Southwest. When open in 2010, the facility will produce a wide range of soft
drinks, juices, juice drinks, bottled water, ready-to-drink teas, energy drinks and other premium beverages at the
Victorville plant. The plant will consist of an 850,000-square-foot building on 57 acres, including 550,000 square
feet of warehouse space, and a 300,000-square-foot manufacturing plant. As of December 31, 2008, we had capital
commitments of approximately $11 million related to this facility.
ITEM 3. LEGAL PROCEEDINGS
We are occasionally subject to litigation or other legal proceedings relating to our business. See Note 22 of the
Notes to our Audited Consolidated Financial Statements for more information related to commitments and
contingencies, which are incorporated herein by reference.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There were no matters submitted to a vote of stockholders during the fourth quarter of 2008.
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