Ulta 2008 Annual Report Download - page 33

As of January 31, 2009, we operated two distribution facilitates located in Romeoville, Illinois and Phoenix,
Arizona. The Romeoville warehouse contains approximately 317,000 square feet, including an overflow
facility. The lease for the Romeoville warehouse expires on April 30, 2010 and has two renewal options with
terms of five years each. The Phoenix warehouse contains approximately 330,000 square feet. The lease for
the Phoenix warehouse expires on March 31, 2019 and has three renewal options with terms of five years
each.
Our corporate offices are located in two separate locations. In February 2008, we relocated our principal
executive office from Romeoville, Illinois to Bolingbrook, Illinois. Our secondary corporate office continues to
be located in Romeoville, Illinois on the site of the Romeoville warehouse. The lease for the Bolingbrook
office expires on August 31, 2018 and the lease for the Romeoville office expires on April 30, 2010. We have
secured additional office space in Bolingbrook, Illinois for corporate use to accommodate future human
resource requirements over the next several years.
Item 3. Legal Proceedings
Securities litigation — In December 2007 and January 2008, three putative securities class action lawsuits were
filed against us and certain of our current and then-current executive officers in the United States District
Court for the Northern District of Illinois. Each suit alleges that the prospectus and registration statement filed
pursuant to our initial public offering contained materially false and misleading statements and failed to
disclose material facts. Each suit claims violations of Sections 11, 12(a)(2) and/or 15 of the Securities Act of
1933, and the two later filed suits added claims under Sections 10(b) and 20(a) of the Securities Exchange Act
of 1934, as well as the associated Rule 10b-5. In February 2008, two of the plaintiffs filed competing motions
to consolidate the actions and appoint lead plaintiffs and lead plaintiffs’ counsel. On March 18, 2008, after
one of the plaintiffs withdrew his motion, the suits were consolidated and plaintiffs in the Mirsky v. ULTA
action were appointed lead plaintiffs. Lead plaintiffs filed their amended complaint on May 19, 2008. The
amended complaint alleges no new violations of the securities laws not asserted in the prior complaints. It
adds no new defendants and drops one of the then-current officers as a defendant. On July 21, 2008,
Defendants filed a motion to dismiss the Amended Complaint. On September 24, 2008, Lead Plaintiffs filed
their opposition to the motion to dismiss, and on October 24, 2008, Defendants filed their reply memorandum
in support of their motion to dismiss. On March 19, 2009, Defendants’ motion to dismiss was denied.
Although we intend to defend ourselves vigorously in this lawsuit, an adverse resolution may have a material
adverse effect on our financial position and results of operations in the period in which the lawsuit is resolved.
We are not presently able to reasonably estimate potential losses, if any, related to the lawsuit.
General litigation — We are also involved in various legal proceedings that are incidental to the conduct of
our business, including, but not limited to, employment related claims. In the opinion of management, the
amount of any liability with respect to these proceedings, either individually or in the aggregate, will not be
material.
Item 4. Submission of Matters to a Vote of Security Holders
None.
EXECUTIVE OFFICERS OF THE REGISTRANT
The names of our executive officers, their ages and their positions are shown below:
Name Age Position
Lyn P. Kirby ......................... 54 President, Chief Executive Officer and Director
Gregg R. Bodnar . .................... 44 Chief Financial Officer and Assistant Secretary
There is no family relationship between any of the Directors or executive officers and any other Director or
executive officer of Ulta.
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