Plantronics 2014 Annual Report Download - page 35

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23
ITEM 2. PROPERTIES
Our principal executive offices are located in Santa Cruz, California. Our facilities are located throughout the Americas, Europe,
and Asia. The table below lists the major facilities owned or leased as of March 31, 2014:
Location Square Footage Lease/Own Primary Use
Chattanooga, Tennessee 10,125 Own Light Assembly, Sales and Marketing, Engineering,
Administration, and TAC (Technical Assistance Center)
Hoofddorp, Netherlands 14,788 Lease Administrative and TAC
San Diego, California 23,368 Lease Industrial and Office Space
Santa Cruz, California 79,253 Own Sales and Marketing, Engineering, Administration
Santa Cruz, California 44,183 Own Light Assembly, Sales, Engineering, Administration
Santa Cruz, California 39,892 Own Light Assembly, Sales, Engineering, Administration
Santa Cruz, California 20,325 Lease Light Assembly, Sales, Engineering, Administration
Suzhou, China 42,012 Lease Sales, Administration, Design Center, Quality, TAC
Tijuana, Mexico 792,304 Own Engineering, Assembly, Administration, Logistic and Distribution
Center, Design Center, Call Center, and TAC.
Wootton Bassett, UK 21,824 Own Main Building Sales, Engineering, Administration
Wootton Bassett, UK 15,970 Own Currently leased to a third party
ITEM 3. LEGAL PROCEEDINGS
On October 12, 2012, GN Netcom, Inc. sued Plantronics, Inc. in the U.S. District Court for the District of Delaware, case number
1:12cv01318, alleging violations of the Sherman Act, the Clayton Act, and Delaware common law. In its complaint, GN specifically
alleges four causes of action: Monopolization, Attempted Monopolization, Concerted Action in Restraint of Trade, and Tortious
Interference with Business Relations. GN claims that Plantronics dominates the market for headsets sold into contact centers in
the United States and that a critical channel for sales of headsets to contact centers is through a limited network of specialized
independent distributors (“SIDs”). GN asserts that Plantronics attracts SIDs through Plantronics Only Distributor Agreements
and the use of these agreements is allegedly illegal. Plantronics denies each of the allegations in the complaint and is vigorously
defending itself.
In March 2014, the Company settled pending patent litigation with Aliph, Inc. and AliphCom, Inc. (collectively, “Aliph”). As
part of this settlement, the Company granted to Aliph a non-exclusive, non-transferable license under the licensed patent and
released Aliph from all claims in exchange for a settlement payment of $8 million, payable in four equal installments of $2 million
each, commencing in May 2014 and ending in January 2015. The Company will recognize the gain upon receipt of the settlement
proceeds, net of immaterial legal contingency fees, within operating income.
In addition, we are presently engaged in various legal actions arising in the normal course of business. We believe it is unlikely
that any of these actions will have a material adverse impact on our operating results; however, because of the inherent uncertainties
of litigation, the outcome of any of these actions could be unfavorable and could have a material adverse effect on our financial
condition, results of operations, or cash flows.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.