Ulta 2010 Annual Report Download - page 61

leases was $82,365, $73,228 and $66,640 for fiscal 2010, 2009 and 2008, respectively. Future minimum lease
payments under operating leases as of January 29, 2011, are as follows:
Fiscal year
Operating
Leases
2011 ............................................................... $102,798
2012 ............................................................... 102,429
2013 ............................................................... 99,589
2014 ............................................................... 94,463
2015 ............................................................... 84,444
2016 and thereafter .................................................... 237,049
Total minimum lease payments............................................ $720,772
Included in the operating lease schedule above is $45,830 of minimum lease payments for stores that will
open in fiscal 2011.
General litigation — In July 2009 a putative employment class action lawsuit was filed against the Company
and certain unnamed defendants in state court in California. The suit alleges that Ulta misclassified its store
General Managers and Salon Managers as exempt from the Fair Labor Standards Act and California Labor
Code. The suit seeks to recover damages and penalties as a result of this alleged misclassification. On
August 27, 2009, the Company filed our answer to the lawsuit, and on August 31, 2009 the Company moved
the action to the United States District Court for the Northern District of California. On November 2, 2009,
the plaintiffs filed an amended complaint adding another named plaintiff. On May 26, 2010, the Company and
plaintiffs engaged in a voluntary mediation. Although the Company continues to deny plaintiffs’ allegations,
in the interest of putting the Salon Manager claims behind it, the Company agreed in principle to settle all
claims of the putative Salon Manager class. The settlement, which is not an admission of liability, received
Court approval on December 17, 2010 and payments were disbursed to individual class members in February
2011. Counsel for the plaintiffs has agreed to dismiss without prejudice the claims of the General Managers.
The settlement amount is not material.
In May 2010, a putative employment class action lawsuit was filed against the Company and certain unnamed
defendants in state court in California. The plaintiff and members of the proposed class are alleged to be (or
have been) non-exempt hourly employees. The suit alleges that Ulta violated various provisions of the
California labor laws and failed to provide plaintiff and members of the proposed class with full meal periods,
paid rest breaks, certain wages, overtime compensation and premium pay. The suit seeks to recover damages
and penalties as a result of these alleged practices. On June 21, 2010, the Company filed its answer to the
lawsuit. On January 12, 2011, the Company and plaintiffs engaged in a voluntary mediation. Although the
Company continues to deny plaintiffs’ allegations, in the interest of putting certain of the claims behind it, the
Company agreed in principle to settle all claims of the putative class consisting of non-exempt hourly hair
designers in the salon department within the California retail stores. The settlement, which is not an admission
of liability, is subject to final documentation and Court approval. Counsel for the plaintiffs has agreed to
dismiss without prejudice the claims of all other putative class members. The proposed settlement amount is
not material.
The Company is also involved in various legal proceedings that are incidental to the conduct of our business.
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.
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Ulta Salon, Cosmetics & Fragrance, Inc.
Notes to Financial Statements — (Continued)