Snapple 2012 Annual Report Download - page 35

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17
Our facilities and operations may require substantial investment and upgrading.
We have an ongoing program of investment and upgrading in our manufacturing, distribution and other facilities. We expect
to incur substantial costs to upgrade or keep up-to-date various facilities and equipment or restructure our operations, including
closing existing facilities or opening new ones. If our investment and restructuring costs are higher than anticipated or our business
does not develop as anticipated to appropriately utilize new or upgraded facilities, our costs and financial performance could be
negatively affected.
Our distribution agreements with our allied brands could be terminated.
Approximately 85% of our 2012 Packaged Beverages net sales of branded products come from our owned and licensed brands,
with the remaining from the distribution of third party brands such as Big Red, AriZona, FIJI, Neuro, Vita Coco and Hydrive. We
are subject to a risk of our allied brands terminating their distribution agreements with us, which could negatively 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.
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 for us and change the interpretation of existing standards and pronouncements, which could have a significant effect
on our reported results or financial position for the affected periods.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
As of December 31, 2012, we owned or leased 157 administrative, manufacturing and principal distribution centers and
warehouse facilities operating across the Americas. Our corporate headquarters are located in Plano, Texas, in a facility that we
own.