American Eagle Outfitters 2014 Annual Report Download - page 15

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Table of Contents
ITEM 2. PROPERTIES.
We own two buildings in urban Pittsburgh, Pennsylvania which house our corporate headquarters. These buildings total 186,000 square
feet and 150,000 square feet, respectively. We lease one location near our headquarters, which is used primarily for store and corporate support
services, totaling approximately 51,000 square feet. This lease expires in 2022.
We rent approximately 131,000 square feet of office space in New York, New York for our designers and sourcing and production teams.
The lease for this space expires in May 2016. We also lease an additional 35,000 square feet of office space in New York, New York, with
various terms expiring through 2018.
We lease 9,200 square feet of office space in San Francisco, California that functions as a technology center for our engineers and digital
marketing team focused on our omni-channel strategy. The lease for this space expires in 2019.
We also lease offices in international locations including 5,800 square feet in Mexico City expiring in 2020, 15,400 square feet in Hong
Kong expiring in 2017 and 11,300 square feet in Shanghai, China expiring in 2017.
We own a distribution facility in Ottawa, Kansas consisting of approximately 1,220,000 total square feet. This facility is used to support
new and existing growth initiatives, including AEO Direct and aerie.
We own a 423,000 square foot building located in a suburban area near Pittsburgh, Pennsylvania, which houses a distribution center and
contains approximately 120,000 square feet of office space. In Fiscal 2013, we announced plans to close this facility in Fiscal 2015 and transfer
operations our facility in Hazleton, Pennsylvania. In the same suburban area near Pittsburgh, Pennsylvania, we own a 45,000 square foot
building, which houses our data center and additional office space and lease an additional location of approximately 18,000 square feet, which
is used for storage space. This lease expires in 2015.
We opened a new distribution facility in 2014 in Hazleton, Pennsylvania consisting of approximately 1,000,000 total square feet. This is
designed to enable faster, more efficient product deliveries and to support our long-term expansion goals.
We lease a building in Mississauga, Ontario with approximately 294,000 square feet, which houses our Canadian distribution center. The
lease expires in 2018.
We lease our flagship store in the Times Square area of New York, New York. The 25,000 square foot location has an initial term of
15 years with three options to renew for five years each. This flagship store opened in November 2009 and the initial lease term expires in
2024.
All of our stores are leased and generally have initial terms of 10 years. Certain leases also include early termination options, which can
be exercised under specific conditions. Most of these leases provide for base rent and require the payment of a percentage of sales as additional
contingent rent when sales reach specified levels. Under our store leases, we are typically responsible for tenant occupancy costs, including
maintenance and common area charges, real estate taxes and certain other expenses. We have generally been successful in negotiating renewals
as leases near expiration.
ITEM 3. LEGAL PROCEEDINGS.
We are a party to various legal actions incidental to our business, including certain actions in which we are the plaintiff. At this time, our
management does not expect the results of any of the legal actions to be material to our financial position or results of operations.
ITEM 4. MINE SAFETY DISCLOSURES.
Not Applicable
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