Hibbett Sports 2012 Annual Report Download - page 21

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Store Locations
As of January 28, 2012, we operated 832 stores in 26 contiguous states. Of these stores, 203 are located in enclosed malls
and 629 are located in strip-shopping centers, which are typically influenced by a Wal-Mart store. Strip-shopping centers include
free-standing stores. The following shows the number of locations by state as of January 28, 2012:
Alabama 83 Kansas 21 Oklahoma 40
Arizona 6 Kentucky 43 South Carolina 32
Arkansas 41 Louisiana 43 South Dakota 1
Colorado 5 Missouri 26 Tennessee 56
Florida 39 Mississippi 60 Texas 83
Georgia 89 Nebraska 6 Virginia 17
Iowa 8 New Mexico 11 West Virginia 10
Illinois 19 North Carolina 47 Wisconsin 7
Indiana 20 Ohio 19 TOTAL 832
As of March 16, 2012, we operated 829 stores in 26 states.
Item 3. Legal Proceedings.
We are a party to various legal proceedings incidental to our business. We do not believe that any of these matters will,
individually or in the aggregate, have a material effect on our business or financial condition. We cannot give assurance,
however, that one or more of these lawsuits will not have a material effect on our results of operations for the period in which
they are resolved. It is reasonably possible that losses in addition to the amount accrued could be incurred. However, we cannot
predict the outcome of these matters or make an estimate of the possible loss or range of loss based on the information currently
available to the Company. At January 28, 2012, we estimate that the liability related to these matters is approximately $0.3
million and accordingly, have accrued $0.3 million as a current liability in our consolidated balance sheet. As of January 29,
2011, we had accrued $0.4 million as it related to our estimated liability for legal proceedings.
The estimates of our liability for pending and unasserted potential claims do not include litigation costs. It is our policy
to accrue legal fees when it is probable that we will have to defend against known claims or allegations and we can reasonably
estimate the amount of the anticipated expense.
From time to time, we enter into certain types of agreements that require us to indemnify parties against third-party claims
under certain circumstances. Generally, these agreements relate to: (a) agreements with vendors and suppliers under which we may
provide customary indemnification to our vendors and suppliers in respect to actions they take at our request or otherwise on our
behalf; (b) agreements to indemnify vendors against trademark and copyright infringement claims concerning merchandise
manufactured specifically for or on behalf of the Company; (c) real estate leases, under which we may agree to indemnify the lessors
from claims arising from our use of the property; and (d) agreements with our directors, officers and employees, under which we
may agree to indemnify such persons for liabilities arising out of their relationship with us. We have director and officer liability
insurance, which, subject to the policy’s conditions, provides coverage for indemnification amounts payable by us with respect to our
directors and officers up to specified limits and subject to certain deductibles.
If we believe that a loss is both probable and estimable for a particular matter, the loss is accrued in accordance with the
requirements of ASC Topic 450, Contingencies. With respect to any matter, we could change our belief as to whether a loss is
probable or estimable, or its estimate of loss, at any time.
Item 4. Mine Safety Disclosures.
Not applicable.