Pepsi 2013 Annual Report Download - page 39

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and “Disruption of our supply chain could have an adverse impact on our business, financial condition and
results of operations.”
A portion of our workforce belongs to unions. Failure to successfully negotiate collective bargaining
agreements, or strikes or work stoppages could cause our business to suffer.
Many of our employees are covered by collective bargaining agreements and other employees may seek to
be covered by collective bargaining agreements. Strikes or work stoppages and interruptions could occur if
we are unable to renew these agreements on satisfactory terms or enter into new agreements on satisfactory
terms, which could adversely impact our operating results. The terms and conditions of existing, renegotiated
or new agreements could also increase our costs or otherwise affect our ability to fully implement future
operational changes to enhance our efficiency.
Our intellectual property rights could be infringed or challenged and reduce the value of our products
and brands and have an adverse impact on our business, financial condition and results of operations.
We possess intellectual property rights that are important to our business. These intellectual property rights
include ingredient formulas, trademarks, copyrights, patents, business processes and other trade secrets that
are important to our business and relate to a variety of our products, their packaging, the processes for their
production and the design and operation of various equipment used in our businesses. We protect our
intellectual property rights globally through a combination of trademark, copyright, patent and trade secret
laws, third-party assignment and nondisclosure agreements and monitoring of third-party misuses of our
intellectual property. If we fail to obtain or adequately protect our ingredient formulas, trademarks, copyrights,
patents, business processes and other trade secrets, or if there is a change in law that limits or removes the
current legal protections of our intellectual property, the value of our products and brands could be reduced
and there could be an adverse impact on our business, financial condition and results of operations. See also
“Changes in the legal and regulatory environment could limit our business activities, increase our operating
costs, reduce demand for our products or result in litigation.”
Potential liabilities and costs from litigation or legal proceedings could have an adverse impact on our
business, financial condition and results of operations.
We and our subsidiaries are party to a variety of legal claims and proceedings in the ordinary course of
business, including but not limited to litigation related to our advertising, marketing or commercial practices,
product labels, claims and ingredients and environmental and insurance matters. Since litigation is inherently
uncertain, there is no guarantee that we will be successful in defending ourselves against such claims or
proceedings, or that management’s assessment of the materiality of these matters, including the reserves
taken in connection therewith, will be consistent with the ultimate outcome of such claims or proceedings.
In the event that management’s assessment of materiality of current claims and proceedings proves inaccurate
or litigation that is material arises in the future, there may be a material adverse effect on our consolidated
financial statements, results of operations or cash flows. See also “Any damage to our reputation could have
a material adverse effect on our business, financial condition and results of operations.”
Many factors may adversely affect the price of our common stock and our financial performance.
Many factors may adversely affect the price of our common stock and our financial performance. Such
factors, some of which are beyond our control, may include, but are not limited to: unfavorable economic
conditions; changes in financial or tax reporting and changes in accounting principles or practices that
materially affect our reported financial condition and results and investor perceptions of our performance;
actions by shareholders or others seeking to influence our business strategies; and the impact of our share
repurchase program. In addition, corporate actions, such as those we may or may not take from time to time
as part of our continuous review of our corporate structure, including as a result of business, legal and tax