Pottery Barn 2004 Annual Report Download - page 14

Download and view the complete annual report

Please find page 14 of the 2004 Pottery Barn annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

Our corporate facilities are located in San Francisco, California. Our primary headquarters, consisting of 122,000
square feet, was purchased in 1993. In February 2000, we purchased a 204,000 square foot facility in San
Francisco, California for the purpose of consolidating certain headquarters staff and to provide for future growth.
We believe that our facilities are adequate for our current needs and that suitable additional or substitute space
will be available in the future to replace our existing facilities, if necessary, or to accommodate expansion of our
operations.
We also lease office space, design/photo studio and warehouse space, and data center space in the following
locations:
Location Square Footage (Approximate)
Brisbane, California 194,000 square feet
San Francisco, California 131,000 square feet
New York City, New York 52,000 square feet
Rocklin, California 14,000 square feet
As of January 30, 2005, we entered into an agreement to lease an additional 88,000 square feet of warehouse
space in Brisbane, California, which we occupied in February 2005. In addition, we entered into an agreement to
lease a 52,000 square foot facility in New York City, which replaces our currently occupied New York facility.
We expect to occupy this new facility in May 2005. Although these facilities were not occupied by us as of
year-end, we have included them within the table above.
ITEM 3. LEGAL PROCEEDINGS
On September 24, 2004, a purported class action lawsuit entitled Alvarez, et al. v. Williams-Sonoma, Inc., et al.
was filed in the Superior Court of California, San Francisco County. The potential class consists of current and
former store managers and assistant store managers in California Williams-Sonoma brand stores. The lawsuit
alleges that the employees were improperly classified under California’s wage and hour and unfair business
practice laws and seeks damages, penalties under California’s wage and hour laws, restitution and attorneys’ fees
and costs. We are vigorously investigating and defending this litigation. Because the case is in the very early
stages, the financial impact to us cannot yet be predicted.
In addition, we are involved in other lawsuits, claims and proceedings incident to the ordinary course of our
business. These disputes, which are not currently material, are increasing in number as our business expands and
our company grows larger. Litigation is inherently unpredictable. Any claims against us, whether meritorious or
not, could be time consuming, result in costly litigation, require significant amounts of management time and
result in the diversion of significant operational resources. The results of these lawsuits, claims and proceedings
cannot be predicted with certainty. However, we believe that the ultimate resolution of these current matters will
not have a material adverse effect on our consolidated financial statements taken as a whole.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There were no matters submitted to a vote of security holders during the fourth quarter of fiscal 2004.
7
Form 10-K