Build-A-Bear Workshop 2011 Annual Report Download - page 28

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BUILD-A-BEAR WORKSHOP, INC. 2011 FORM 10-K
Most of our leases have an initial term of ten years and
do not have renewal options or clauses although our leases in
the United Kingdom are typically covered by laws and
regulations that give us priority rights of renewal. A number of
our leases provide a lease termination or “kick out” option,
which may be mutual, allowing either party to exercise the
option in a pre-determined year or years, typically the third or
fourth year and sixth or seventh year of the lease, if we do not
meet certain agreed upon minimum sales levels. In addition,
our leases typically require us to pay personal property taxes,
our pro rata share of real property taxes of the shopping mall,
our own utilities, repairs and maintenance in our store, a pro
rata share of the malls’ common area maintenance and, in
some instances, merchant association fees and media fund
contributions. Most of our leases in North America also
require the payment of a fixed minimum rent as well as
percentage rent based on sales in excess of agreed upon
minimum annual sales levels. Our leases in the
United Kingdom and Ireland typically have rent reviews every
five years in which the base rental rate is adjusted to current
market rates if they are higher than the original rent agreed.
Following is a list of our 346 company-owned stores in
the United States, Canada, the United Kingdom and Ireland
as of December 31, 2011:
State
Number of
Stores State
Number of
Stores
Alabama . ......... 5Missouri . . . . . . . . . 7
Alaska . . . ......... 1Montana . . . . . . . . . 1
Arizona . . ......... 5Nebraska ........ 1
Arkansas . ......... 3Nevada . . . . . . . . . 3
California ......... 26 New Hampshire . . . 2
Colorado . ......... 6New Jersey ....... 12
Connecticut . . . . . . . . 5New Mexico . . . . . . 1
Delaware . ......... 1New York ........ 12
Florida . . . ......... 21 North Carolina . . . . 9
Georgia . . ......... 8Ohio . . . . . . . . . . . . 10
Idaho . . ........... 1Oklahoma ........ 2
Illinois . . . ......... 10 Oregon . . . . . . . . . . 3
Indiana . . ......... 7Pennsylvania . . . . . . 11
Iowa . . ........... 3Puerto Rico ....... 1
Kansas . . . ......... 2Rhode Island . . . . . . 1
Kentucky . ......... 3South Carolina . . . . 3
Louisiana . ......... 5Tennessee ........ 5
Maine . . . ......... 2Texas . . . . . . . . . . . 24
Maryland . ......... 5Utah . . . . . . . . . . . . 3
Massachusetts . . . . . . 9Virginia . . . . . . . . . . 10
Michigan . ......... 5Washington . . . . . . 5
Minnesota ......... 2West Virginia . . . . . 1
Mississippi ......... 1Wisconsin ........ 5
Canadian Province United Kingdom
Alberta . . ......... 3England . . . . . . . . . 48
British Columbia . . . . 2Scotland . . . . . . . . . 6
Manitoba . ......... 1Wales . . . . . . . . . . . 1
Nova Scotia ....... 1Northern Ireland . . . 1
Ontario . . ......... 9Ireland . . . . . . . . . . 2
Quebec . . ......... 3
Saskatchewan . . . . . . 1
NON-STORE PROPERTIES
In addition to leasing all of our store locations, we lease
approximately 59,000 square feet for our corporate
headquarters, or World Bearquarters, in
St. Louis, Missouri. Our World Bearquarters houses our
corporate staff, our call center and our on-site training
facilities. The lease was amended, effective January 1, 2008
with a five-year term, and may be extended for two additional
five-year terms. In September 2006, we completed
construction of a company-owned warehouse and distribution
center, or Bearhouse, in Groveport, Ohio, which is utilized
primarily by our Retail segment. The facility is approximately
350,000 square feet. In 2007, our web fulfillment site moved
to the Bearhouse.
In the United Kingdom, we lease approximately
2,000 square feet for our regional headquarters in
Windsor, England. The lease commenced in August 2003.
The lease can be terminated at any time by either party giving
notice of termination six months prior to cancellation.
ITEM 3. LEGAL PROCEEDINGS
From time to time we are involved in ordinary routine litigation
typical for companies engaged in our line of business. We are
involved in several court actions seeking to enforce our
intellectual property rights or to determine the validity and
scope of the proprietary rights of others. As of the date of this
Annual Report on Form 10-K, we are not involved in any
pending legal proceedings that we believe would be likely,
individually or in the aggregate, to have a material adverse
effect on our financial condition or results of operations.
ITEM 4. MINE SAFETY DISCLOSURE
Not applicable
20