MoneyGram 2013 Annual Report Download - page 25

Table of Contents
The market price of our common stock may be volatile.
The market price of our common stock may fluctuate significantly in response to a number of factors, some of which may be beyond our control.
These factors include the perceived prospects or actual operating results of our business; changes in estimates of our operating results by
analysts, investors or our management; our actual operating results relative to such estimates or expectations; actions or announcements by us or
our competitors; litigation and judicial decisions; legislative or regulatory actions; and changes in general economic or market conditions. In
addition, the stock market in general has from time to time experienced extreme price and volume fluctuations. These market fluctuations could
reduce the market price of our common stock for reasons unrelated to our operating performance.
Item 1B. UNRESOLVED STAFF COMMENTS
None.
Item 2. PROPERTIES
The following table includes information concerning our material properties, all of which are leased, including location, use, approximate area in
square feet and lease terms as of December 31, 2013 :
(1)
Included is approximately 52,879 square feet that has been sublet.
We also have a number of small leased office locations in the U.S., France, Germany, Italy and Spain. Additionally, we have small leased sales
and marketing offices in 23 countries and territories around the world. We believe that our properties are sufficient to meet our current and
projected needs. We periodically review our facility requirements and may acquire new facilities, or modify, consolidate, dispose of or sublet
existing facilities, based on business needs.
Item 3. LEGAL PROCEEDINGS
Legal Proceedings
—
The matters set forth below are subject to uncertainties and outcomes that are not predictable. The Company accrues for
these matters as any resulting losses become probable and can be reasonably estimated. Further, the Company maintains insurance coverage for
many claims and litigation alleged.
Litigation Commenced Against the Company:
The Company is involved in various claims and litigation that arise from time to time in the ordinary course of the Company’
s business.
Management does not believe that after final disposition any of these matters is likely to have a material adverse impact on the Company’
s
financial condition, results of operations and cash flows.
Government Investigations:
State Civil Investigative Demands —
MoneyGram has received Civil Investigative Demands from a working group of nine state attorneys
general who have initiated an investigation into whether the Company took adequate steps to prevent consumer fraud during the period from
2007 to 2011. The Civil Investigative Demands seek information and documents relating to the Company’
s procedures to prevent fraudulent
transfers and consumer complaint information. MoneyGram continues to cooperate fully with the states in this matter. MoneyGram has
submitted the information and documents requested by the states. No claims have been filed against MoneyGram in connection with this
investigation. Accordingly, we are unable to estimate the potential dollar amount of any loss in connection with this investigation or whether any
loss in connection with this investigation could have a material adverse effect on our results of operations, cash flows or financial position. The
Company does not believe there is a basis for any claim or recovery with respect to this matter and intends to vigorously defend itself if any
claim is asserted.
23
Location Use Segment(s) Using Space Square Feet Lease Expiration
Minneapolis, MN
(1)
Global Operations Center Both
168,211
12/31/2015
Brooklyn Center, MN Global Operations Center Both
75,000
4/30/2015
Lakewood, CO Call Center Global Funds Transfer
68,165
3/31/2015
Dallas, TX Corporate Headquarters Both
54,956
6/30/2021
Frisco, TX Global Operations Center Both
25,287
6/30/2021
London, UK Global Operations Center Both
20,738
1/23/2021