Dillard's 2010 Annual Report Download - page 13

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At January 29, 2011, we operated the following additional facilities:
Owned /
Facility Location Square Feet Leased
Distribution Centers: ................. Mabelvale, AR 400,000 Owned
Gilbert, AZ 295,000 Owned
Valdosta, GA 370,000 Owned
Olathe, KS 500,000 Owned
Salisbury, NC 355,000 Owned
Ft. Worth, TX 700,000 Owned
Internet Fulfillment Center ............. Nashville, TN 285,000 Leased
Dillard’s Executive Offices ............. Little Rock, AR 333,000 Owned
CDI Contractors, LLC Executive Office .... Little Rock, AR 25,000 Owned
CDI Storage Facilities ................. Maumelle, AR 66,000 Owned
Total ............................. 3,329,000
Additional information is contained in Notes 1, 3, 13 and 14 of ‘‘Notes to Consolidated Financial
Statements,’’ in Item 8 hereof.
ITEM 3. LEGAL PROCEEDINGS.
On May 27, 2009, a lawsuit was filed in the United States District Court for the Eastern District of
Arkansas styled Steven Harben, Derivatively on Behalf of Nominal Defendant Dillard’s, Inc. v. William
Dillard II et al, Case Number 4:09-IV-395. The lawsuit generally seeks return of monies and alleges that
certain officers and directors of the Company have been overcompensated and/or received improper
benefits at the expense of the Company and its shareholders. On September 30, 2010, the court
dismissed the lawsuit in its entirety. It is not known whether plaintiff intends to file an appeal. If so,
the named officers and directors intend to contest these allegations vigorously.
On June 10, 2009, a lawsuit was filed in the Circuit Court of Pulaski County, Arkansas styled
Billy K. Berry, Derivatively on behalf of Dillard’s, Inc. v. William Dillard II et al, Case
Number CV-09-4227-2. The lawsuit generally seeks return of monies and alleges that certain officers
and directors of the Company have been overcompensated and/or received improper benefits at the
expense of the Company and its shareholders. On February 18, 2010, the Circuit Court entered an
‘‘Order of Dismissal with Prejudice and Final Judgment’’ dismissing the case as to all parties defendant.
Plaintiff has appealed the Court’s Order. The named officers and directors will continue to contest
these allegations vigorously.
From time to time, the Company is involved in other litigation relating to claims arising out of the
Company’s operations in the normal course of business. This may include litigation with customers,
employment related lawsuits, class action lawsuits, purported class action lawsuits and actions brought
by governmental authorities. As of March 23, 2011, the Company is not a party to any legal
proceedings that, individually or in the aggregate, are reasonably expected to have a material adverse
effect on the Company’s business, results of operations, financial condition or cash flows.
ITEM 4. RESERVED.
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