Proctor and Gamble 2012 Annual Report Download - page 22
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Please find page 22 of the 2012 Proctor and Gamble annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.20 The Procter & Gamble Company
third-parties or their vendors, to assist in conducting our
business. The various uses of these IT systems, networks,
and services include, but are not limited to:
• ordering and managing materials from suppliers;
• converting materials to finished products;
• shipping product to customers;
• marketing and selling products to consumers;
• collecting and storing customer, consumer,
employee, investor, and other stakeholder
information and personal data;
• processing transactions;
• summarizing and reporting results of operations;
• hosting, processing, and sharing confidential and
proprietary research, business plans, and financial
information;
• complying with regulatory, legal or tax
requirements;
• providing data security; and
• handling other processes necessary to manage our
business.
Increased IT security threats and more sophisticated
computer crime, including advanced persistent threats, pose
a potential risk to the security of our IT systems, networks,
and services, as well as the confidentiality, availability, and
integrity of our data. If the IT systems, networks, or service
providers we rely upon fail to function properly, or if we
suffer a loss or disclosure of business or stakeholder
information, due to any number of causes, ranging from
catastrophic events to power outages to security breaches,
and our business continuity plans do not effectively address
these failures on a timely basis, we may suffer interruptions
in our ability to manage operations and reputational,
competitive and/or business harm, which may adversely
impact our results of operations and/or financial condition.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
In the U.S., we own and operate 33 manufacturing
facilities located in 21 different states or territories. In
addition, we own and operate 103 manufacturing facilities in
41 other countries. Many of the domestic and international
facilities produce products for multiple businesses. Beauty
products are manufactured at 41 of these locations;
Grooming products at 16; Fabric Care and Home Care
products at 61; Baby Care and Family Care products at 31;
and Health Care products at 33. Management believes that
the Company's production facilities are adequate to support
the business efficiently and that the properties and equipment
have been well maintained.
Item 3. Legal Proceedings.
The Company is subject, from time to time, to
certain legal proceedings and claims arising out of our
business, which cover a wide range of matters, including
antitrust and trade regulation, product liability, advertising,
contracts, environmental issues, patent and trademark
matters, labor and employment matters and tax.
As previously reported, the Company has had a
number of antitrust cases in Europe. The Company's policy
is to comply with all laws and regulations, including all
antitrust and competition laws, and to cooperate with the
relevant regulatory authorities, which the Company is doing.
In response to the actions of the regulatory authorities, the
Company launched its own internal investigations into
potential violations of competition laws. The Company
identified violations in certain European countries and
appropriate actions were taken.
As a result of certain investigations that were
previously disclosed, several authorities issued separate
complaints alleging that the Company, along with several
other companies, engaged in violations of competition laws
in the past. The Company resolved several of these matters
prior to or during fiscal year 2012.
The Company has remaining antitrust matters at
various stages of the regulatory process in Belgium, France,
Germany and Greece, while other countries have issued
decisions, many of which are on appeal. All of these matters
involve a number of other consumer products companies
and/or retail customers. Competition and antitrust violations
often continue for several years and, if violations are found,
can result in substantial fines. No non-monetary sanctions
are being sought in these matters.
For certain of the remaining matters listed above,
we have established accruals for potential fines and we do
not expect any significant incremental fines or costs in
excess of amounts accrued for these matters. For other
remaining matters, we cannot reasonably estimate any fines
to which the Company may be subject as a result of the
investigations. Please refer to the Company's Risk Factors in
Part I, Item 1A of this Form 10-K for additional information.
Item 4. Mine Safety Disclosure
Not Applicable.