Pottery Barn 2012 Annual Report Download - page 33

In addition, states and the federal government are increasingly enacting laws and regulations to protect
consumers against identity theft. Also, as our business expands globally, we are subject to data privacy and other
similar laws in various foreign jurisdictions. Compliance with these laws will likely increase the costs of doing
business and, if we fail to implement appropriate safeguards or to detect and provide prompt notice of
unauthorized access as required by some of these new laws, we could be subject to potential claims for damages
and other remedies, which could harm our business.
If we fail to attract and retain key personnel, our business and operating results may be harmed.
Our future success depends to a significant degree on the skills, experience and efforts of key personnel in our
senior management, whose vision for our company, knowledge of our business and expertise would be difficult
to replace. If any one of our key employees leaves, are seriously injured or unable to work, or fails to perform
and we are unable to find a qualified replacement, we may be unable to execute our business strategy.
In addition, our main offices are located in the San Francisco Bay Area, where competition for personnel with
retail and technology skills can be intense. If we fail to identify, attract, retain and motivate these skilled
personnel, our business may be harmed. Further, in the event we need to hire additional personnel, we may
experience difficulties in attracting and successfully hiring such individuals due to competition for highly skilled
personnel, as well as the significantly higher cost of living expenses in our market.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
We lease store locations, distribution centers, corporate facilities and customer care centers for our U.S. and
foreign operations for original terms ranging generally from 3 to 22 years. Certain leases contain renewal options
for periods of up to 20 years.
For our store locations, our gross leased store space, as of February 3, 2013, totaled approximately 5,778,000 square
feet for 581 stores compared to approximately 5,743,000 square feet for 576 stores as of January 29, 2012.
Leased Properties
The following table summarizes the location and size of our leased distribution centers, customer care centers
and corporate facilities occupied as of February 3, 2013:
Location Occupied Square Footage (Approximate)
Distribution Centers
Olive Branch, Mississippi 2,105,000
South Brunswick, New Jersey 1,351,000
City of Industry, California 1,180,000
Memphis, Tennessee11,023,000
Claremont, North Carolina 412,000
Other 278,000
Corporate Facilities
Brisbane, California 194,000
New York City, New York 93,000
San Francisco, California 13,000
Other 41,000
Customer Care Centers
Las Vegas, Nevada 36,000
Oklahoma City, Oklahoma 36,000
Other 17,000
1See Note F to our Consolidated Financial Statements for more information.
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Form 10-K