Pottery Barn 2008 Annual Report Download - page 30
Download and view the complete annual report
Please find page 30 of the 2008 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.-
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
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
 |
 |
that are based on a percentage of sales, cannot be predicted with certainty at the onset of the lease term.
Accordingly, any contingent rental payments are recorded as incurred each period when the sales threshold is
probable and are excluded from our calculation of deferred rent liability.
Distribution Centers
We lease distribution facility space in the following locations:
Location Square Footage (Approximate)
Olive Branch, Mississippi 3,275,000
Memphis, Tennessee 1,023,000
City of Industry, California 1,180,000
Cranbury, New Jersey 781,000
South Brunswick, New Jersey 418,000
Hickory, North Carolina 199,000
Lakeland and Pompano Beach, Florida 72,000
Two of our distribution facilities in Memphis, Tennessee are leased from two partnerships whose partners
include W. Howard Lester, our Chairman of the Board of Directors and Chief Executive Officer, and James A.
McMahan, a Director Emeritus and a significant shareholder. Both partnerships are consolidated by us. See Note
F to our Consolidated Financial Statements for more information.
During fiscal 2008, we entered into lease agreements in Florida and North Carolina for storage space associated
with the additional insourcing of our furniture delivery hubs within the region and for the purpose of a small
manufacturing facility.
In January 2009, in connection with our infrastructure cost reduction program, we closed one of our offsite
distribution facilities located in Memphis, Tennessee. The facility, containing approximately 500,000 square feet
of space was fully vacated by us as of February 1, 2009 and therefore not included in the table above. We do,
however, continue to be liable for future rental payments under our lease agreement through the end of the lease
term in August 2010. Therefore, we have recorded a liability for all contractual future obligations within our
Consolidated Balance Sheet as of February 1, 2009.
In addition to the above long-term contracts, we enter into other agreements for such things as our offsite storage
needs for both our distribution centers and our retail store locations. As of February 1, 2009, we had
approximately 194,000 square feet of leased space relating to these agreements that is not included in the table
above. This compares to approximately 676,000 square feet of leased space as of February 3, 2008.
Care Centers
We lease care center space in the following locations:
Location Square Footage (Approximate)
Las Vegas, Nevada 36,000
Oklahoma City, Oklahoma 36,000
As of February 1, 2009, in connection with our infrastructure cost reduction program, we terminated the lease
agreement on our 38,000 square foot care center facility in Camp Hill, Pennsylvania and vacated the facility. The
square footage associated with this care center facility has therefore been excluded from the table above.
18