DFS Annual Report

• increased burdens of complying with a wide variety of foreign laws, including employment-related laws, which may be more stringent than U.S. laws; • unexpected changes in regulatory requirements; • political and economic instability; and • compliance with applicable anti-corruption and sanction laws and regulations. We cannot be sure that our investments or operations in other countries will produce desired levels of net sales or that one or more of the factors listed above will not affect our global business. ITEM 1B. UNRESOLVED STAFF COMMENTS The Company has no unresolved written comments from the SEC staff regarding its periodic or current reports under the Securities Exchange Act of 1934. ITEM 2. PROPERTIES The Company’s corporate office is located in leased office space at 35 West Wacker Drive, Chicago, Illinois, 60601. As of December 31, 2016, the Company leased or owned 43 U.S. facilities, some of which had multiple buildings and warehouses, and these U.S. facilities encompassed approximately 1.5 million square feet. The Company leased or owned 27 international facilities, some of which had multiple buildings and warehouses, encompassing approximately 0.1 million square feet in Europe, Asia, Canada and Latin America. Of the Company’s U.S. and international facilities, approximately 0.4 million square feet of space was owned, while the remaining 1.2 million square feet of space was leased. ITEM 3. LEGAL PROCEEDINGS For a discussion of certain litigation involving the Company, see Note 10, Commitments and Contingencies , to the Consolidated and Combined Financial Statements. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 20