ADT 2013 Annual Report Download - page 96

Download and view the complete annual report

Please find page 96 of the 2013 ADT 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.

Page out of 172

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172

FORM 10-K
which is located in Atlanta, GA. These properties total approximately two million square feet, the majority of
which is leased. We lease approximately 4,000 vehicles which are used in the installation and service activities of
our business.
Our corporate headquarters is located in Boca Raton, FL. We are currently co-located in the same facility as
Tyco. In connection with the Separation, we have agreed to share the facility with Tyco until May 2014.
However, we are in segregated space within the facility, with each company having its own entrance, security
and maintenance systems. We have agreed to lease this space directly from the third-party building owner at
market rates for a 12-year period following the Separation.
We also maintain certain transition arrangements with Tyco related to our monitoring, information
technology and branch operations, which generally end by September 30, 2014.
The following table shows our significant facilities:
Location
Approximate
Square Footage Owned or Leased
Atlanta, GA Regional Distribution Center .... 58,000 Leased
Aurora, CO Customer Care Center and Field
Support Center ........................ 122,000 Leased
Rochester, NY Customer Monitoring Center . . 40,000 Owned
Rochester, NY National Dispatch Center ..... 25,000 Leased
Jacksonville, FL Customer Monitoring Center
and National Sales Center ............... 72,000 Owned
Jacksonville, FL Field Support Center ....... 29,000 Owned
Jacksonville, FL Account Service Center ..... 65,000 Leased
Irving, TX Customer Monitoring Center and
Field Support Center ................... 89,000 Owned
Irving, TX National Sales Center ........... 80,000 Leased
Knoxville, TN Customer Monitoring Center
and National Dispatch Center ............ 54,000 Owned
Calgary, Alberta Customer Monitoring
Center ............................... 26,000 Leased
Montreal, Quebec Customer Monitoring
Center ............................... 21,000 Leased
Toronto, Ontario National Dispatch Center .... 22,000 Leased
Corporate Headquarters
Boca Raton, FL ......................... 104,000 Leased
Item 3. Legal Proceedings.
We were named as a defendant in two putative class actions that were filed on behalf of purported classes of
persons who claim to have received unsolicited “robocalls” in contravention of the U.S. Telephone Consumer
Protection Act (“TCPA”). These lawsuits were brought by plaintiffs seeking class action status and monetary
damages on behalf of all plaintiffs who allegedly received such unsolicited calls, claiming that millions of calls
were made by third party entities on our behalf. We assert that such entities were not retained by us nor
authorized to make calls on our behalf. During fiscal year 2012, we entered into an agreement to settle this
litigation and increased our legal reserve by $15 million. On June 21, 2013, the District Court approved the
settlement and entered a Final Order of Judgment and Dismissal. Final payment was made in the fourth fiscal
quarter of 2013.
On October 25, 2013, we were notified by subpoena that the Office of the Attorney General of California, in
conjunction with the Alameda County District Attorney, is investigating whether certain of our waste disposal
32