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18
Changes in accounting standards could affect our reported financial results.
We are subject to changes in accounting rules and interpretations. The Financial Accounting Standards Board is currently in
the process of deliberating changes to a number of existing standards governing a variety of areas. Certain of these proposed
standards, particularly the proposed standard governing the accounting for leases, if and when effective, could have a material
impact on our consolidated financial statements. Additionally, compliance with such requirements may result in increased selling,
general and administrative expenses or capital expenditures and the associated depreciation expense. Refer to Note 2 of the Notes
to our Audited Consolidated Financial Statements in Item 8, "Financial Statements and Supplementary Data" of this Annual Report
on Form 10-K for a discussion of recently issued accounting standards and recently adopted provisions of U.S. GAAP.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
As of December 31, 2014, we owned or leased 154 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.
The following table summarizes our significant properties by geography and by operating segment:
Packaged Beverage Latin America
Beverages Concentrates Beverages
Owned Leased Owned Leased Owned Leased Total
United States:
Office buildings(1) 1 9 1 — — 11
Manufacturing facilities 12 6 1 — — — 19
Principal distribution centers and warehouse
facilities 40 66 — — — — 106
53 81 2 — — — 136
Mexico and Canada:
Office buildings — 1 — — — 2 3
Manufacturing facilities(2) ———— 3— 3
Principal distribution centers and warehouse
facilities — — — — 3 9 12
— 1 — — 6 11 18
Total 53 82 2 — 6 11 154
____________________________
(1) The office building owned by our Beverage Concentrates operating segment is our corporate headquarters located in Plano,
Texas.
(2) The three manufacturing facilities owned by our Latin America Beverages operating segment include the manufacturing
facility leased to our joint venture with Acqua Minerale San Benedetto.
We believe our facilities in the U.S. 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 for 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.
ITEM 3. LEGAL PROCEEDINGS
We are occasionally subject to litigation or other legal proceedings relating to our business. See Note 21 of the Notes to our
Audited Consolidated Financial Statements for more information related to commitments and contingencies, which is incorporated
herein by reference.