American Eagle Outfitters 2008 Annual Report Download - page 15

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ITEM 2. PROPERTIES.
We own a 186,000 square foot building in an urban Pittsburgh, Pennsylvania location which houses our
corporate headquarters. Additionally, we began construction of a 152,000 square foot building on adjacent land,
which will also be used for the expansion of our corporate headquarters. We lease three locations near our
headquarters, which are used primarily for store and corporate support services, totaling approximately
68,000 square feet. These leases expire with various terms through 2022.
We own a 490,000 square foot building located in a suburban area near Pittsburgh, Pennsylvania, which houses
our distribution center and contains approximately 120,000 square feet of office space. We also own a 45,000 square
foot building, which houses our data center and additional office space. We lease an additional location of
approximately 18,000, which is used for storage space. This lease expires in 2010.
We rent approximately 131,000 square feet of office space in New York, New York for our designers and
sourcing and production teams. The lease for this space expires in May 2016. We also lease an additional
60,000 square feet of office space in New York, New York, with various terms expiring through 2018.
We own a distribution facility in Ottawa, Kansas consisting of approximately 1,220,000 total square feet,
including a 544,000 square foot expansion which was completed during Fiscal 2007 and a 280,000 square foot
expansion which was completed during Fiscal 2008. This expanded facility is used to support new and existing
growth initiatives, including AEO Direct, aerie, MARTIN + OSA and 77kids.
We lease a building in Mississagua, Ontario with approximately 294,000 square feet, which houses our
Canadian distribution center. The lease expires in 2017.
We also entered into a lease in Fiscal 2007 for a new flagship store in the Times Square area of New York,
New York. The 25,000 square foot location has an initial term of 15 years with three options to renew for five years
each. We anticipate this store to open in late Fiscal 2009.
All of our stores in the United States and Canada are leased. The store leases generally have initial terms of
10 years. Certain leases also include early termination options, which can be exercised under specific conditions.
Most of these leases provide for base rent and require the payment of a percentage of sales as additional contingent
rent when sales reach specified levels. Under our store leases, we are typically responsible for tenant occupancy
costs, including maintenance and common area charges, real estate taxes and certain other expenses. We have
generally been successful in negotiating renewals as leases near expiration.
ITEM 3. LEGAL PROCEEDINGS.
We are a party to various legal actions incidental to our business, including certain actions in which we are the
plaintiff. At this time, our management does not expect the results of any of the legal actions to be material to our
financial position or results of operations.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
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