America Online 2014 Annual Report Download - page 46

• the operating and stock price performance of other comparable companies;
• overall market fluctuations;
• changes in laws and regulations affecting our business; and
• general economic conditions and other external factors.
Stock markets in general have experienced volatility that has often been unrelated to the operating
performance of a particular company. These broad market fluctuations could adversely affect the trading price of
our common stock. When the market price of a company’s stock fluctuates significantly, shareholders may
institute securities class action litigation against that company. Any litigation against us could cause us to incur
substantial costs, divert the time and attention of our management and other resources or otherwise harm our
business.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
Our headquarters, located in New York City, is a leased property consisting of approximately 230 thousand
square feet. We own a corporate campus in Dulles, Virginia comprised of office buildings, child care and support
facilities of approximately 650 thousand square feet. In addition to these properties, we lease approximately
1,100 thousand square feet in over 50 facilities for use as corporate offices, sales offices, development centers,
data centers and other operations in other locations in the United States and internationally. Our larger leased
sites are located in California, Colorado, the District of Columbia, Illinois, Maryland, Minnesota, New York and
Virginia and in the countries of Canada, Germany, India, Ireland, Israel and the United Kingdom. We sublease to
third parties approximately 200 thousand square feet of our leased properties. Due to the nature of our operations,
most of the properties described above are used by more than one of our segments.
We believe that our facilities are sufficient to meet our current and projected needs. We also have an
ongoing process to review and update our real estate portfolio to meet changing business needs.
ITEM 3. LEGAL PROCEEDINGS
We are a party to a variety of claims, suits and proceedings that arise in the normal course of business,
including actions with respect to intellectual property claims, tax matters, labor and unemployment claims,
commercial claims, claims related to our business model for content creation and other matters. While the results
of such normal course claims, suits and proceedings cannot be predicted with certainty, management does not
believe that, based on current knowledge and the likely timing of resolution of various matters, any additional
reasonably possible potential losses above the amount accrued for such matters would be material to our financial
statements nor does management believe there is a reasonable likelihood of any material loss from any pending
legal proceedings. Regardless of the outcome, legal proceedings can have an adverse effect on us because of
defense costs, diversion of management resources and other factors. See “Item 1A-Risk Factors-Risks Relating to
Our Business-If we cannot continue to enforce and protect our intellectual property rights, our business could be
adversely affected” and “Item 1A-Risk Factors-Risks Relating to Our Business-We have been, and may in the
future be, subject to claims of intellectual property infringement or tort law violations that could adversely affect
our business” included in this Annual Report.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
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