Shutterfly 2013 Annual Report Download - page 45

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ITEM 2. PROPERTIES.
The table below includes material property leases, including both operating and build-to-suit leases.
During 2013, we entered into a lease for office space in Santa Clara, California and for manufacturing
facilities in Shakopee, Minnesota and Tempe, Arizona which are expected to be operational in 2014 and
2015, respectively.
We believe that our existing facilities are adequate to meet our current needs.
Location Principal Use Square Footage Lease Term
Redwood City, California(1) ...... Corporate headquarters 100,000 2017
Santa Clara, California(2) ........ Office space 53,700 2017
Phoenix, Arizona(3) ............ Manufacturing facility 101,200 2016
Fort Mill, South Carolina(4) ...... Manufacturing and customer service 300,000 2023
facility
Elmsford, New York(5) .......... Manufacturing facility (MyPublisher 40,000 2023
acquisition)
Shakopee, Minnesota(6) ......... Manufacturing facility 217,000 2024
Phoenix, Arizona .............. Manufacturing facility (R&R 29,300 2017
acquisition)
Tempe, Arizona(7) ............. Manufacturing and customer service 217,000 2025
facility
(1) We have an option to extend the lease for two additional periods of three years each. The lease also
provided for a $2.1 million tenant improvement reimbursement allowance which was fully utilized as
of December 31, 2011.
(2) We have an option to extend the lease for one additional period of three years.
(3) We have an option to extend the lease for three additional periods of five years each, and a right of
first offer to lease space in adjacent buildings.
(4) We have the option to expand the facility by an additional 100,000 square feet as well as an option to
extend the lease for one additional period of five years.
(5) We have an option to extend the lease for two additional periods of five years each.
(6) This facility is expected to become operational during 2014. In order for the facility to meet our
operating specifications, we and the landlord are making structural changes as part of the uplift of the
building. We have an option to extend the lease for three additional periods of five years.
(7) This facility is expected to become operational during 2015. In order for the facility to meet our
operating specifications, we and the landlord are making structural changes as part of the uplift of the
building. We have the option to expand the facility by an additional 111,000 square feet as well as an
option to extend the lease for two additional periods of five years.
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