THQ 2011 Annual Report Download - page 25

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We cannot be certain of the future effectiveness of our internal control over financial reporting or the impact of the same on
our operations and the market price for our common stock.
Pursuant to Section 404 of the Sarbanes-Oxley Act of 2002, we are required to include in our 10-K our assessment of
the effectiveness of our internal control over financial reporting. Furthermore, our independent registered public accounting firm
is required to report on whether it believes we maintain, in all material respects, effective internal control over financial reporting.
Although we believe that we currently have adequate internal control procedures in place, we cannot be certain that our internal
control over financial reporting will be effective in the future. If we cannot adequately maintain the effectiveness of our internal
control over financial reporting, we might be subject to sanctions or investigation by regulatory authorities, such as the SEC. Any
such action could adversely impact our financial results and the market price of our common stock.
Catastrophic events or geo-political conditions may disrupt our business.
Our net sales are derived from sales of our games, which are developed within a relatively small number of studio facilities
located throughout the world. If a fire, flood, earthquake or other disaster, condition or event such as political instability, civil
unrest or a power outage, adversely affected any of these facilities while personnel were finishing development of a game, it could
significantly delay the release of the game, which could result in a substantial loss of sales in any given quarter and cause our
operating results to differ materially from expectations.
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None.
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Our principal corporate and administrative office is located in approximately 100,000 square feet of leased space in a building
located at 29903 Agoura Road, Agoura Hills, California. Including this office, the following is a summary of the square footage
of the principal leased offices we maintained as of March 31, 2011:
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Sales and administrative
Product development
Total leased square footage
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116,800
382,300
499,100
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47,000
6,100
53,100
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22,600
31,100
53,700
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186,400
419,500
605,900
We also own 10,820 square feet of space in Phoenix, Arizona, which serves as our data center.
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From time to time we are involved in ordinary routine litigation incidental to our business. In the opinion of our management,
none of such pending litigation is expected to have a material adverse effect on our consolidated financial condition or results of
operations.
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16