AutoZone 2013 Annual Report Download - page 78

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Item 2. Properties
The following table reflects the square footage and number of leased and owned properties for our stores as of
August 31, 2013:
No. of Stores S
q
uare Foota
g
e
Lease
d
....................................................................................................... 2,653 16,930,389
Owne
d
...................................................................................................... 2,548 17,145,139
Total .......................................................................................................... 5,201 34,075,528
We have approximately 4.0 million square feet in distribution centers servicing our stores, of which
approximately 1.3 million square feet is leased and the remainder is owned. Our distribution centers are located in
Arizona, California, Georgia, Illinois, Ohio, Pennsylvania, Tennessee, Texas, and Mexico. Our primary store
support center is located in Memphis, Tennessee, and consists of approximately 260,000 square feet. We also
have three additional store support centers located in Monterrey, Mexico; Chihuahua, Mexico and Sao Paulo,
Brazil. The ALLDATA headquarters building in Elk Grove, California, and the AutoAnything headquarters
space in San Diego, California are leased, and we also own or lease other properties that are not material in the
aggregate.
Item 3. Legal Proceedings
In 2004, we acquired a store site in Mount Ephraim, New Jersey that had previously been the site of a gasoline
service station and contained evidence of groundwater contamination. Upon acquisition, we voluntarily reported
the groundwater contamination issue to the New Jersey Department of Environmental Protection and entered into
a Voluntary Remediation Agreement providing for the remediation of the contamination associated with the
property. We have conducted and paid for (at an immaterial cost to us) remediation of contamination on the
property. We are also investigating, and will be addressing, potential vapor intrusion impacts in downgradient
residences and businesses. The New Jersey Department of Environmental Protection asserted, in a Directive and
Notice to Insurers dated February 19, 2013 (“Directive”), that we are liable for the downgradient impacts under a
joint and severable liability theory, and we have contested any such assertions due to the existence of other
entities/sources of contamination, some of which are also named in the Directive, in the area of the property.
Pursuant to the Voluntary Remediation Agreement, upon completion of all remediation required by the
agreement, we believe we are eligible to be reimbursed up to 75 percent of qualified remediation costs by the
State of New Jersey. We have asked the state for clarification that the agreement applies to off-site work, and the
state is considering the request. Although the aggregate amount of additional costs that we may incur pursuant to
the remediation cannot currently be ascertained, we do not currently believe that fulfillment of our obligations
under the agreement or otherwise will result in costs that are material to our financial condition, results of
operations or cash flow.
We are involved in various other legal proceedings incidental to the conduct of our business, including several
lawsuits containing class-action allegations in which the plaintiffs are current and former hourly and salaried
employees who allege various wage and hour violations and unlawful termination practices. We do not currently
believe that, either individually or in the aggregate, these matters will result in liabilities material to our financial
condition, results of operations or cash flows.
Item 4. Mine Safety Disclosures
Not applicable.
10-K