Business Context and Reporting Period
Company: Take-Two Interactive Software, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: December 12, 2016
Event: Entry into a Material Definitive Agreement (Lease) for new corporate headquarters.
Key Financial Metrics
This filing reports on a specific contractual agreement rather than periodic financial performance. No revenue, profit, cash flow, or margin data is provided in this document.
| Metric | Value |
|---|---|
| Lease Term | Approximately 16 years (commencing Dec 12, 2016) |
| Aggregate Committed Rent (Initial Term) | Approximately $71.9 million |
| Initial Annual Lease Rate | Approximately $4.4 million |
| Final Year Annual Lease Rate | Approximately $5.1 million |
| Occupancy Start | Expected late 2017 |
| Rent Commencement | 12 months after Commencement Date |
Material Changes
The Company entered into a new lease for premises at 1133 Avenue of the Americas and 110 West 44th Street, New York, NY. This represents a significant capital commitment for future operating expenses. The Company intends to continue leasing its current offices at 622 Broadway after the move is completed.
Outlook, Risks, and Unusual Items
- Expansion Options: The Company has an option to extend the lease for an additional ten-year term and an option to lease additional office space in the same building if available.
- Work Allowance: The Landlord has agreed to provide a work allowance for initial alterations (hard and soft costs) to prepare the premises for occupancy.
- Exclusions: Rental amounts are exclusive of the Company's proportionate share of taxes and operating expenses.
- Documentation: The full text of the Lease will be filed as an exhibit to the Form 10-Q for the period ending December 31, 2016.
Investor Verification Checklist
- Verify the total square footage (approx. 61,383 sq. ft.) and specific floor allocations.
- Confirm the exact date of rent commencement (12 months post-signing) and the impact on future cash flow projections.
- Review the upcoming Form 10-Q for the full Lease agreement text and details on the work allowance amount.
- Assess the financial impact of maintaining the current 622 Broadway lease alongside the new premises.