Coach 2006 Annual Report Download - page 11

between Coach and any person who beneficially owns 10% or more of Coach’s common stock or an affiliate of such person are prohibited
for a five-year period unless exempted in accordance with the statute. After this period, a combination of this type must be approved by two
super-majority stockholder votes, unless some conditions are met or the business combination is exempted by Coach’s Board of Directors.
Coach’s Board has exempted any business combination with us or any of our affiliates from the five-year prohibition and the super-
majority vote requirements.
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None.
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The following table sets forth the location, use and size of Coach’s distribution, corporate and product development facilities as of June
30, 2007, substantially all of which are leased. The leases expire at various times through 2015, subject to renewal options.
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Jacksonville, Florida Distribution and consumer service 560,000
New York, New York Corporate, sourcing and product development 275,000
Carlstadt, New Jersey Corporate and product development 55,000
Tokyo, Japan Coach Japan, corporate 20,000
Shenzhen, People’s Republic of China Sourcing, quality control and product development 18,000
Florence, Italy Sourcing and product development 16,000
Dongguan, People’s Republic of China Sourcing, quality control and product development 6,000
Hong Kong Sourcing and quality control 5,000
Seoul, South Korea Sourcing 3,000
As of June 30, 2007, Coach also occupied 259 retail and 93 factory leased stores located in North America and 137 department store
shop-in-shops, retail stores and factory stores in Japan. These leases expire at various times through 2020. Coach considers these properties
to be in generally good condition and believes that its facilities are adequate for its operations and provide sufficient capacity to meet its
anticipated requirements.
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Coach is involved in various routine legal proceedings as both plaintiff and defendant incident to the ordinary course of its business,
including proceedings to protect Coach’s intellectual property rights, litigation instituted by persons alleged to have been injured upon
premises within Coach’s control and litigation with present or former employees.
As part of Coach’s policing program for its intellectual property rights, from time to time, Coach files lawsuits in the U.S. and abroad
alleging acts of trademark counterfeiting, trademark infringement, patent infringement, trade dress infringement, trademark dilution and/or
state or foreign law claims. At any given point in time, Coach may have one or more of such actions pending. These actions often result in
seizure of counterfeit merchandise and/or out of court settlements with defendants. From time to time, defendants will raise, either as
affirmative defenses or as counterclaims, the invalidity or unenforceability of certain of Coach’s intellectual properties.
Although Coach’s litigation with present or former employees is routine and incidental to the conduct of Coach’s business, as well as for
any business employing significant numbers of U.S.-based employees, such litigation can result in large monetary awards when a civil jury
is allowed to determine compensatory and/or punitive damages for actions claiming discrimination on the basis of age, gender, race,
religion, disability or other legally protected characteristic or for termination of employment that is wrongful or in violation of implied
contracts.
Coach believes that the outcome of all pending legal proceedings in the aggregate will not have a material adverse effect on Coach’s
business or consolidated financial statements.
Coach has not entered into any transactions that have been identified by the IRS as abusive or that have a significant tax avoidance
purpose. Accordingly, we have not been required to pay a penalty to the IRS for failing to make disclosures required with respect to certain
transactions that have been identified by the IRS as abusive or that have a significant tax avoidance purpose.
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None.
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