CompUSA 2012 Annual Report Download - page 17

Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
We operate our business from numerous facilities in North America, Europe and Asia. These facilities include our headquarters location,
administrative offices, telephone call centers, distribution centers, computer assembly and retail stores. Certain facilities handle multiple
functions. Most of our facilities are leased; certain are owned by the Company.
North America
As of December 31, 2012 we have six distribution centers in North America which aggregate approximately 2.0 million square feet, all of which
are leased. Our headquarters, administrative offices and call centers aggregate approximately 382,000 square feet, all of which are leased. Our
computer assembly facility is approximately 300,000 square feet and is owned by the Company and is currently available for sale.
The following table summarizes the geographic location of our North America stores at the end of 2012:
All of our retail stores are leased. The retail stores average 22,506 square feet.
Europe
As of December 31, 2012, we have five distribution centers in Europe which aggregate approximately 264,000 square feet. Four of these,
aggregating approximately 191,000 square feet, are leased; one distribution center of approximately 73,000 square feet is owned by the
Company. Our administrative offices and call centers aggregate approximately 330,000 square feet, of which 252,000 square feet are leased and
77,000 square feet are owned by the Company.
Asia
As of December 31, 2012, we leased administrative offices in Asia of approximately 58,000 square feet.
Please refer to Note 11 to the Consolidated Financial Statements for additional information about leased properties, including aggregate rental
expense for these properties.
Item 3. Legal Proceedings.
The Company and its subsidiaries are involved in various lawsuits, claims, investigations and proceedings including commercial, employment,
consumer, personal injury and health and safety law matters, which are being handled and defended in the ordinary course of business. In
addition, the Company is subject to various assertions, claims, proceedings and requests for indemnification concerning intellectual property,
including patent infringement suits involving technologies that are incorporated in a broad spectrum of products the Company sells. The
Company is also audited by (or has initiated voluntary disclosure agreements with) numerous governmental agencies in various countries,
including U.S. Federal and state authorities, concerning potential income tax, sales tax and unclaimed property liabilities. These matters are in
various stages of investigation, negotiation and/or litigation, and are being vigorously defended. In this regard, the Company is being audited by
the state of Texas regarding its claim that certain of the company’s consumer electronics e-commerce sales are subject to sales tax in Texas; the
Company is defending this matter, believes it has strong defenses, and has established reserves for this matter. Results for year ended December
31, 2012 were positively impacted by approximately $7.6 million of which $2.6 million related to the favorable resolution of contingent
liabilities which were recorded in the second quarter of 2012 and $5.0 million related to an insurance recovery relating to action taken by a
former officer and director, and negatively impacted by $1.8 million of patent claim settlements with non-practicing entities which were
recorded in the third and fourth quarter of 2012.
Table of Contents
Location
Stores Open
–
12/31/11
Store Openings/
(Store Closings)
Stores Open
–
12/31/12
Delaware
2
2
Florida
18
(1)
17
Georgia
1
1
Illinois
5
5
North Carolina
2
2
Puerto Rico
1
1
2
Texas
7
(1)
6
Ontario, Canada
6
6
42
(1)
41
15