Memorex 2010 Annual Report Download - page 16

Download and view the complete annual report

Please find page 16 of the 2010 Memorex 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 106

  • 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

• new products introduced by us or our competitors;
• periods of severe pricing pressures due to oversupply or price erosion resulting from competitive pressures or
industry consolidation;
• developments with respect to patents or proprietary rights;
• conditions and trends in the consumer electronics and data storage industries;
• contraction in our operating results or growth rates;
• changes in financial estimates by securities analysts relating specifically to us or the industries in which we
participate in general; and
• macroeconomic conditions that affect the market generally.
In addition, general economic conditions may cause the stock market to experience extreme price and volume
fluctuations from time to time that particularly affect the stock prices of many high technology companies. These
fluctuations often appear to be unrelated to the operating performance of the companies.
If we are unable to attract and retain employees and key talent our business and financial results may be
materially impacted. We operate in a highly competitive market for employees with specialized skill, experience and
industry knowledge. We plan to add employees as part of our strategy to invest in technology, expand sales and marketing,
improve decision making tools in IT and international expansion focused on China. No assurance can be given that we will
be able to attract and retain employees and key talent.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
Our worldwide headquarters is located in Oakdale, Minnesota, in the United States of America. Our principal facilities,
and the functions at such facilities, are listed below for each reporting segment. Our facilities are in good operating
condition suitable for their respective uses and are adequate for our current needs.
Facility Function
Americas
Oakdale, Minnesota (owned) . . . . . . . . . . . . . . . . . . . . . . Sales/Administrative/Laboratory facility/Corporate
headquarters
Southaven, Mississippi (leased) . . . . . . . . . . . . . . . . . . . . Distribution Center
Weatherford, Oklahoma (owned). . . . . . . . . . . . . . . . . . . . Magnetic tape manufacturing
Europe
Hoofddorp, Netherlands (leased). . . . . . . . . . . . . . . . . . . . Sales/Administrative/European regional headquarters
Neuss, Germany (leased) . . . . . . . . . . . . . . . . . . . . . . . . Sales/Administrative/Distribution Center
North Asia
Tokyo, Japan (leased) . . . . . . . . . . . . . . . . . . . . . . . . . . . Sales/Administrative/North Asia regional headquarters
South Asia
Kings Park, Australia (leased) . . . . . . . . . . . . . . . . . . . . . Sales/Administrative/Distribution Center
Singapore (leased) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . South Asia regional headquarters
Item 3. Legal Proceedings.
In the normal course of business, we periodically enter into agreements that incorporate general indemnification
language. Performance under these indemnities would generally be triggered by a breach of terms of the contract or by a
third-party claim. There has historically been no material losses related to such indemnifications. In accordance with
accounting principles generally accepted in the United States of America, we record a liability in our Consolidated Financial
Statements for these actions when a loss is known or considered probable and the amount can be reasonably estimated.
13