Shutterfly 2014 Annual Report Download - page 14

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expose us to government investigations or audits, prosecution for violations of applicable laws and/or
substantial liability, including penalties, damages, significant attorneys’ fees, expenses necessary to comply
with such laws and regulations or the need to modify our business practices. From time to time, claims may
be threatened against us for aiding and abetting, defamation, negligence, copyright or trademark
infringement, or other theories based on the nature and content of information to which we provide links
or that we or others post online. On a more general level, government regulation of the Internet could
dampen the growth in the use of the Internet, have the effect of discouraging innovation and investment in
Internet-based enterprises or lead to unpredictable litigation.
We post on our websites our privacy policies and practices concerning the use and disclosure of user
data. Any failure by us to comply with our posted privacy policies, Federal Trade Commission
requirements or other privacy-related laws and regulations could result in proceedings that could
potentially harm our business, results of operations and financial condition. In this regard, there are a large
number of federal and state legislative proposals before the United States Congress and various state
legislative bodies regarding privacy issues related to our business. It is not possible to predict whether or
when such legislation may be adopted, and certain proposals, such as required use of disclaimers, if
adopted, could harm our business through a decrease in user registrations and revenues.
Employees
As of December 31, 2014, we had 1,812 full time employees. Below is a summary of employees by
function as of December 31, for each of the last three years:
2014 2013 2012
Cost of revenue .................................. 905 755 453
Technology and development ......................... 477 428 327
Sales and marketing ............................... 259 250 213
General and administrative .......................... 171 140 114
Total .......................................... 1,812 1,573 1,107
During the peak holiday season, we hire contract workers on a temporary basis from third-party
outsourcing firms. For example, during our peak production period in the fourth quarter of 2014, we used
approximately 2,500 temporary workers to assist in our production and fulfillment operations. None of our
employees are represented by a labor union or are covered by a collective bargaining agreement. We have
never experienced any employment-related work stoppages and consider our employee relations to be
good.
Available Information
Our Internet website is located at http://www.shutterflyinc.com. The information on our website is not
a part of this annual report on Form 10-K. We make available free of charge on our website our annual
report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to
those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934,
as soon as reasonably practicable after we electronically file such material with, or furnish it to, the
Securities and Exchange Commission. Our SEC reports can be accessed through the investor relations
section of our Internet website.
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