Our intellectual property rights are valuable, and any inability to protect them could reduce the value of our products and brands.
We consider our intellectual property rights to be a significant and valuable aspect of our business. We attempt to protect our intellectual property rights through a combination of trademark, patent, copyright and trade secret protection, contractual agreements and policing of third-party misuses of our intellectual property. Our failure to obtain or adequately protect our intellectual property or any change in law that lessens or removes the current legal protections of our intellectual property may diminish our competitiveness and adversely affect our business and financial results. We also license certain intellectual property, most notably Grown in Idaho and Alexia, from third parties. To the extent that we are not able to contract with these third parties on favorable terms or maintain our relationships with these third parties, our rights to use certain intellectual property could be impacted.
Competing intellectual property claims that impact our brands or products may arise unexpectedly. Any litigation or disputes regarding intellectual property may be costly and time-consuming and may divert the attention of our management and key personnel from our business operations. We also may be subject to significant damages or injunctions against development, launch and sale of certain products. Any of these occurrences may harm our business and financial results.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
We are headquartered in Eagle, Idaho. The following table sets forth our principal production and processing facilities as of May 29, 2022:
| | | | |
Location | | Type of Facility and Number | | Owned/ Leased |
Domestic: | | | | |
American Falls, ID | | Production Facility and Cold Storage | | Owned (1) |
Boardman, OR | | Production Facility (2), Production Facility and Cold Storage | | Owned (3) |
Connell, WA | | Production Facility, Cold Storage | | Owned (1), Leased (1) |
Delhi, LA | | Production Facility, Cold Storage, Farm | | Owned (1), Leased (2) |
Hermiston, OR | | Production Facility | | Owned (1) |
Pasco, WA | | Production Facility (2) | | Owned (2) |
Paterson, WA | | Production Facility, Farm (4) | | Owned (2), Leased (3) |
Quincy, WA | | Production Facility | | Owned (1) |
Richland, WA | | Production Facility | | Owned (1) |
Twin Falls, ID | | Production Facility | | Owned (1) |
Warden, WA | | Production Facility | | Owned (1) |
| | | | |
International: | | | | |
Hallam, Australia | | Production Facility and Cold Storage (2) | | Leased (2) |
Shangdu, China | | Production Facility | | Owned (1) |
Taber, Canada | | Production Facility and Cold Storage | | Owned (1) |
We use our farms as a source of raw materials, to better understand the costs of growing potatoes, and to deploy agronomic research. Our facilities vary in age and condition, and each of them has an active maintenance program to ensure a safe operating environment and to keep the facilities in good condition. We believe all our buildings are in satisfactory operating condition to conduct our business as intended. We also own and lease general office/support facilities in the regions in which we operate, including Australia, Canada, China, Mexico, Japan, Singapore, and the U.S.