CompUSA 2013 Annual Report Download - page 17

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 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, 2013 we have five distribution centers in North America which aggregate approximately 1.9 million square feet, all of
which are leased. Our headquarters, administrative offices and call centers aggregate approximately 383,000 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 under contract for sale.
The following table summarizes the geographic location of our North America stores at the end of 2013:
All of our retail stores are leased. The retail stores average 22,203 square feet.
Europe
As of December 31, 2013, we have three distribution centers in Europe which aggregate approximately 190,000 square feet. Two of these,
aggregating approximately 117,000 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 282,000 square feet, of which 205,000 square feet are leased and
77,000 square feet are owned by the Company.
Asia
As of December 31, 2013, 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
matters, including patent infringement suits involving technologies that are generally used in e-
commerce or 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 state of Pennsylvania has claimed that certain of the Company’s consumer electronics e-
commerce sales are subject
to sales tax in Pennsylvania. The Company intends to vigorously defend this matter and believes it has strong defenses. The Company is also
being audited by an entity representing 45 states seeking recovery of “unclaimed property.”
The Company is complying with the audit and is
providing requested information.
Although the Company does not expect, based on currently available information, that the outcome in any of these matters, individually or
collectively, will have a material adverse effect on its financial condition or results of operations, the ultimate outcome is inherently
unpredictable. Therefore, judgments could be rendered or settlements entered, that could adversely affect the Company’
s operating results or
cash flows in a particular period. The Company routinely assesses all of its litigation and threatened litigation as to the probability of ultimately
incurring a liability, and records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable and
estimable. In this regard, the Company establishes accrual estimates for its various
lawsuits, claims, investigations and proceedings when it is
probable that an asset has been impaired or a liability incurred at the date of the financial statements and the loss can be reasonably estimated. At
December 31, 2013 the Company had established accruals for certain of its various
lawsuits, claims, investigations and proceedings based upon
estimates of the most likely outcome in a range of loss or the minimum amounts in a range of loss if no amount within a range is a more likely
Table of Contents
Location
Stores Open
– 12/31/12
Store
Openings/
(Store
Closings)
Stores Open
– 12/31/13
Delaware
2
(1
)
1
Florida
17
-
17
Georgia
1
-
1
Illinois
5
(1
)
4
North Carolina
2
(1
)
1
Puerto Rico
2
-
2
Texas
6
(2
)
4
Ontario, Canada
6
-
6
41
(5
)
36