Proctor and Gamble 2013 Annual Report Download - page 20

18 The Procter & Gamble Company
and our key retailers. This would be particularly challenging
if major customers are addressing local trade pressures, local
law and regulation changes or financial distress.
A failure of one or more key information technology
systems, networks, processes, associated sites or service
providers could have a material adverse impact on our
business or reputation.
We rely extensively on information technology (IT) systems,
networks and services, including internet sites, data hosting
and processing facilities and tools and other hardware,
software and technical applications and platforms, some of
which are managed, hosted, provided and/or used by 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 products 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 32 manufacturing sites
located in 21 different states or territories. In addition, we
own and operate 102 manufacturing sites in 40 other
countries. Many of the domestic and international sites
manufacture products for multiple businesses. Beauty
products are manufactured at 39 of these locations;
Grooming products at 15; Fabric Care and Home Care
products at 59; Baby Care and Family Care products at 36;
and Health Care products at 35. Management believes that
the Company's production facilities are adequate to support
the business 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. See Note 11 to our
Consolidated Financial Statements for information on certain
legal proceedings for which there are contingencies.
In March 2013, the Republic of Turkey Ministry of
Environmental and Urban Planning notified the Company
that it was imposing a fine on the Company based on alleged
waste management violations at a Wella facility in Turkey.
The Company paid the fine ($790,000) and the matter is
currently on appeal.
This item should be read in conjunction with the Company's
Risk Factors in Part I, Item 1A for additional information.
Item 4. Mine Safety Disclosure.
Not Applicable.