Pepsi 2015 Annual Report Download - page 42

Table of Contents
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Potential liabilities and costs from litigation or legal proceedings could have an adverse impact on our
business, financial condition or 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, intellectual property rights and environmental, employment and
insurance matters. We evaluate legal claims to assess the likelihood of unfavorable outcomes and estimate,
if possible, the amount of potential losses and establish reserves as appropriate. Litigation is inherently
uncertain and there is no guarantee that we will be successful in defending ourselves in litigation, or that our
assessment of the materiality of these matters and the likely outcome or potential losses and established
reserves will be consistent with the ultimate outcome of such litigation. In the event that management’s
assessment of claims and proceedings proves inaccurate or litigation that is material arises in the future, there
may be a material adverse effect on our business, financial condition or results of operations. Defending
ourselves from claims, including non-meritorious claims, may also require us to incur significant expense
and devote significant resources, and may generate adverse publicity that may damage our reputation or
brand image, which could have an adverse impact on our business, financial condition or results of operations.
Many factors may adversely affect the price of our common stock.
Many factors may adversely affect the price of our common stock. 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; investor perceptions of our business, strategies and performance or those of our
competitors; actions by shareholders or others seeking to influence our business strategies; speculation by
the media or investment community regarding our business, strategies and performance or those of our
competitors; trading activity in our common stock or trading activity in derivative instruments with respect
to our common stock; changes in our credit ratings; and the impact of our share repurchase programs or
dividend policy. 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 and our strategy, including as a result of business,
legal, regulatory and tax considerations, may not have the impact we intend and may adversely affect the
price of our common stock. The above factors, as well as other risks included in this “Item 1A. Risk Factors,”
could adversely affect the price of our common stock.
Item 1B. Unresolved Staff Comments.
We have received no written comments regarding our periodic or current reports from the staff of the SEC
that were issued 180 days or more preceding the end of our 2015 fiscal year and that remain unresolved.