Snapple 2010 Annual Report Download - page 36

In some cases, we license products from third parties which we distribute. The licensor may be able to terminate the license
arrangement upon an agreed period of notice, in some cases without payment to us of any termination fee. The termination of any
material license arrangement could adversely affect our business and financial performance.
We could lose key personnel or may be unable to recruit qualified personnel.
Our performance significantly depends upon the continued contributions of our executive officers and key employees, both
individually and as a group, and our ability to retain and motivate them. Our officers and key personnel have many years of
experience with us and in our industry and it may be difficult to replace them. If we lose key personnel or are unable to recruit
qualified personnel, our operations and ability to manage our business may be adversely affected. We do not have “key person”
life insurance for any of our executive officers or key employees.
We depend on key information systems and third party service providers.
We depend on key information systems to accurately and efficiently transact our business, provide information to management
and prepare financial reports. We rely on third party providers for a number of key information systems and business processing
services, including hosting our primary data center and processing various accounting, order entry and other transactional services.
These systems and services are vulnerable to interruptions or other failures resulting from, among other things, natural disasters,
terrorist attacks, software, equipment or telecommunications failures, processing errors, computer viruses, hackers, other security
issues or supplier defaults. Security, backup and disaster recovery measures may not be adequate or implemented properly to avoid
such disruptions or failures. Any disruption or failure of these systems or services could cause substantial errors, processing
inefficiencies, security breaches, inability to use the systems or process transactions, loss of customers or other business disruptions,
all of which could negatively affect our business and financial performance.
Weather and climate changes could adversely affect our business.
Unseasonable or unusual weather or long-term climate changes may negatively impact the price or availability of raw materials,
energy and fuel, and demand for our products. Unusually cool weather during the summer months may result in reduced demand
for our products and have a negative effect on our business and financial performance.
There is growing political and scientific sentiment that increased concentrations of carbon dioxide and other greenhouse gases
in the atmosphere are influencing global weather patterns (“global warming”). Changing weather patterns, along with the increased
frequency or duration of extreme weather conditions, could negatively impact the availability or increase the cost of key raw
materials that we use to produce our products. Additionally, the sale of our products can be negatively impacted by weather
conditions.
Concern over climate change, including global warming, has led to legislative and regulatory initiatives directed at limiting
greenhouse gas (GHG) emissions. For example, proposals that would impose mandatory requirements on GHG emissions continue
to be considered by policy makers in the countries that we operate. Laws enacted that directly or indirectly affect our production,
distribution, packaging, cost of raw materials, fuel, ingredients, and water could all negatively impact our business and financial
results.
Changes in accounting standards could affect our reported financial results.
The number of new accounting standards or pronouncements is increasing as the Financial Accounting Standards Board
and the International Accounting Standards Board work towards a convergence of accounting standards. Certain standards may
become applicable to us and change the interpretation of existing standards and pronouncements, which could have a
significant effect on our reported results for the affected periods.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
United States. As of December 31, 2010, we owned or leased 205 administrative, manufacturing, and distribution facilities
operating across the U.S. Our principal offices are located in Plano, Texas, in a facility that we own. Our Packaged Beverages
segment owns and operates 11 manufacturing facilities, 51 distribution centers and warehouses, and two office buildings,
including our headquarters. They also lease six manufacturing facilities, 123 distribution centers and warehouses, and 10 office
buildings. Our Beverage Concentrates segment owns and operates one manufacturing facility.
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