Snapple 2013 Annual Report Download - page 27

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Our distribution agreements with our allied brands could be terminated.
Approximately 84% of our 2013 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 FIJI, Big Red, AriZona, Hydrive, Vita Coco and Neuro. 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 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 benefit-related accounting and 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.
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.
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, 2013, we owned or leased 155 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.