Memorex 2013 Annual Report Download - page 18

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• 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.
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
Segment(s)
Using Space
Oakdale, Minnesota (owned)(1) .......... Sales/Administrative/Laboratory facility/Corporate headquarters Both
Thousand Oaks, California (leased) ....... Sales/Assembly TSS
Campbell, California (leased) ............ Sales/Distribution Center TSS
Hoofddorp, Netherlands (leased) ......... Sales/Administrative/European regional headquarters Both
Tokyo, Japan (leased) ................. Sales/Administrative/North Asia regional headquarters Both
Kings Park, Australia (leased) ............ Sales/Administrative/Distribution Center/South Asia regional
headquarters Both
Montreal, Canada (leased) .............. Sales/Research & Development TSS
Panama City, Panama (leased) .......... Sales/Administrative/Latin America regional headquarters Both
Derby, United Kingdom (leased) .......... Sales/Assembly TSS
(1) Subject to a mortgage to secure the obligations under our Credit Facility. See Note 11 — Debt in our Notes to
Consolidated Financial Statements for further information on our Credit Facility.
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
supportable third-party claim. There have 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.
We are the subject of various pending or threatened legal actions in the ordinary course of our business. All such
matters are subject to many uncertainties and outcomes that are not predictable with assurance. Additionally, our businesses
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