Netgear 2009 Annual Report Download - page 29

Table of Contents
We depend significantly on worldwide economic conditions and their impact on levels of consumer spending, which have recently
deteriorated significantly in many countries and regions, including without limitation the United States, and may remain depressed for the
foreseeable future. Factors that could influence the levels of consumer spending include increases in fuel and other energy costs, conditions in
the residential real estate and mortgage markets, labor and healthcare costs, access to credit, consumer confidence and other macroeconomic
factors affecting consumer spending behavior.
In addition, war, terrorism, geopolitical uncertainties, public health issues, and other business interruptions have caused and could cause
damage or disruption to international commerce and the global economy, and thus could have a strong negative effect on us, our suppliers,
logistics providers, manufacturing vendors and customers. Our business operations are subject to interruption by natural disasters, fire, power
shortages, terrorist attacks, and other hostile acts, labor disputes, public health issues, and other events beyond our control. Such events could
decrease demand for our products, make it difficult or impossible for us to make and deliver products to our customers or to receive components
from our suppliers, and create delays and inefficiencies in our supply chain. Should major public health issues, including pandemics, arise, we
could be negatively affected by more stringent employee travel restrictions, additional limitations in freight services, governmental actions
limiting the movement of products between regions, delays in production ramps of new products, and disruptions in the operations of our
manufacturing vendors and component suppliers.
None.
Our principal administrative, sales, marketing and research and development facilities currently occupy approximately 142,700 square feet
in an office complex in San Jose, California, under a lease that expires in March 2018.
Our international headquarters occupy approximately 10,000 square feet in an office complex in Cork, Ireland, under a lease entered into in
February 2006 and expiring in December 2026. Our international sales personnel reside in local sales offices or home offices in Austria,
Australia, Brazil, China, Czech Republic, Denmark, France, Germany, Hong Kong, India, Italy, Japan, Korea, Mexico, New Zealand, Poland,
Russia, Singapore, Spain, Sweden, Switzerland, the Netherlands, the United Arab Emirates, and the United Kingdom. We also have operations
personnel using a leased facility in Hong Kong. We also maintain research and development facilities in Beijing, Guangzhou, Nanjing, and
Shanghai, China, and in Taipei, Taiwan. From time to time we consider various alternatives related to our long-term facilities needs. While we
believe our existing facilities are adequate to meet our immediate needs, it may be necessary to lease additional space to accommodate future
growth.
We use third parties to provide warehousing services to us, consisting of facilities in Southern California, Hong Kong and the Netherlands.
The information set forth under Note 9 of the Notes to Consolidated Financial Statements, included in Part IV, Item 15 of this Form 10-K,
is incorporated herein by reference. For an additional discussion of certain risks associated with legal proceedings, see the section entitled “Risk
Factors” in Part I, Item 1A of this Form 10-K.
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Item 1B.
Unresolved Staff Comments
Item 2.
Properties
Item 3.
Legal Proceedings