Saks Fifth Avenue 2011 Annual Report Download - page 17

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Store count activity for the year ended January 28, 2012 is as follows:
SFA OFF 5TH Total
Store count as of January 29, 2011 .......................... 47 57 104
New stores opened .................................... — 5 5
Stores closed ......................................... (1) (2) (3)
Store count as of January 28, 2012 ......................... 46 60 106
Item 3. Legal Proceedings.
On February 2, 2011, the plaintiffs in Dawn Till and Mary Josephs v. Saks Incorporated et al, filed a complaint, with
which the Company was served on March 10, 2011, in a purported class and collective action in the U.S. District
Court for the Northern District of California. The complaint alleges that the plaintiffs were improperly classified as
exempt from the overtime pay requirements of the Fair Labor Standards Act (“FLSA”) and the California Labor
Code and that the Company failed to pay overtime, provide itemized wage statements and provide meal and rest
periods. On March 8, 2011, the plaintiffs filed an amended complaint adding a claim for penalties under the
California Private Attorneys General Act of 2004. The plaintiffs seek to proceed collectively under the FLSA and as a
class under the California statutes on behalf of individuals who have been employed by OFF 5TH as Selling and
Service Managers, Merchandise Team Managers, or Department Managers and similar titles. On February 8, 2012,
the same plaintiffs’ counsel from the Till case filed a complaint, with which the Company was served on March 2,
2012, in the U.S. District Court for the Southern District of New York, alleging essentially the same FLSA claim and
related claims under New York state law (Tate – Small et al v. Saks Incorporated et al). The Company believes that
its managers at OFF 5TH have been properly classified as exempt under both federal and state law and intends to
defend these lawsuits vigorously. It is not possible to predict whether the courts will permit these actions to
proceed collectively or as a class.
In addition to the litigation described in the preceding paragraph, the Company is involved in legal proceedings
arising from its normal business activities and has accruals for losses where appropriate. Management believes
that none of these legal proceedings will have a material adverse effect on the Company’s consolidated financial
position, results of operations, or liquidity.
Item 4. Mine Safety Disclosures.
Not applicable.
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