CompUSA 2014 Annual Report Download - page 21

We operate our business from numerous facilities in North America, Europe and Asia. These facilities include our headquarters location,
administrative offices, telephone call centers, distribution centers and retail stores. Certain facilities handle multiple functions. Most of our
facilities are leased; certain are owned by the Company.
North America
As of December 31, 2014 we have five distribution centers in North America which aggregate approximately 1.9 million square feet, all of
which are leased. Our headquarters, administrative offices and call centers aggregate approximately 392,000 square feet, all of which are
leased.
The following table summarizes the geographic location of our North America stores at the end of 2014:
All of our retail stores are leased. The retail stores average 21,955 square feet.
In March 2015 the Company announced that its Technology Products business segment would be exiting the retail store business in order to
accelerate its focus on its B2B operations as well as transitioning retail customers to online consumer sales. This exit plan includes the closing
of substantially all of its retail stores and management operations.
Europe
As of December 31, 2014, we have three distribution centers in Europe which aggregate approximately 190,000 square feet. Two of these,
aggregating approximately 117,000 square feet are leased; one distribution center of approximately 73,000 square feet is owned by the
Company. Our administrative offices and call centers aggregate approximately 289,000 square feet, of which 212,000 square feet are leased and
77,000 square feet are owned by the Company.
Asia
As of December 31, 2014, we leased administrative offices in Asia of approximately 14,000 square feet.
Please refer to Note 11 to the Consolidated Financial Statements for additional information about leased properties, including aggregate rental
expense for these properties.
The Company and its subsidiaries are involved in various lawsuits, claims, investigations and proceedings including commercial, employment,
consumer, personal injury and health and safety law matters, which are being handled and defended in the ordinary course of business. In
addition, the Company is subject to various assertions, claims, proceedings and requests for indemnification concerning intellectual property,
including patent infringement suits involving technologies that are incorporated in a broad spectrum of products the Company sells. The
Company is also audited by (or has initiated voluntary disclosure agreements with) numerous governmental agencies in various countries,
including U.S. Federal and state authorities, concerning potential income tax, sales tax and unclaimed property liabilities. These matters are in
various stages of investigation, negotiation and/or litigation, and are being vigorously defended. In this regard, the State of New York has
claimed that certain of the Company’s consumer electronics e-
commerce sales are subject to sales tax in those states. The Company intends to
vigorously defend these matters and believes it has strong defenses. The Company is also being audited by an entity representing 45 states
seeking recovery of “unclaimed property”. The Company is complying with the audit and is providing requested information.
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Table of Contents
Item 2.
Properties.
Location Stores Open – 12/31/13
Store Openings/
(Store Closings) Stores Open – 12/31/14
Delaware
1
-
1
Florida
17
(2)
15
Georgia
1
-
1
Illinois
4
-
4
North Carolina
1
-
1
Puerto Rico
2
-
2
Texas
4
-
4
Ontario, Canada 6 - 6
36
(2)
34
Item 3. Legal Proceedings.