Electronic Arts 2016 Annual Report Download - page 106
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Item 1B: Unresolved Staff Comments
None.
Item 2: Properties
We own our 660,000-square-foot Redwood Shores headquarters facilities located in Redwood City, California,
which includes a product development studio and administrative and sales functions. We also own a 418,000-
square-foot product development studio facility in Burnaby, Canada. In addition to the properties we own, we
lease approximately 1.1 million square feet in North America and 929,000 square feet in Europe and Asia at
various research and development, sales and administration and distribution facilities, including leases for our
development studios in Orlando, Florida and Stockholm, Sweden.
While we continually evaluate our facility requirements, we believe that suitable additional or substitute space
will be available as needed to accommodate our future needs. For information regarding our lease commitments,
see Note 13 of the Notes to Consolidated Financial Statements, included in Item 8 in this report. For information
on long-lived assets by geography, see Note 18 of the Notes to Consolidated Financial Statements, included in
Item 8 in this report.
Item 3: Legal Proceedings
On July 29, 2010, Michael Davis, a former NFL running back, filed a putative class action in the United States
District Court for the Northern District of California against the Company, alleging that certain past versions of
Madden NFL included the images of certain retired NFL players without their permission. In March 2012, the
trial court denied the Company’s request to dismiss the complaint on First Amendment grounds. In January 2015,
that trial court decision was affirmed by the Ninth Circuit Court of Appeals and the case was remanded back to
the United States District Court for the Northern District of California, where the case is pending.
We are also subject to claims and litigation arising in the ordinary course of business. We do not believe that any
liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the
aggregate, would have a material adverse effect on our Consolidated Financial Statements.
Item 4: Mine Safety Disclosures
Not applicable.
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