Petsmart 2014 Annual Report Download - page 31

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Table of Contents
We lease all our stores, distribution centers, and corporate offices under noncancelable leases. The terms of the store
leases generally range from 10 to 15 years and typically allow us to renew for two to four additional five-year terms. Store
leases, excluding renewal options, expire at various dates through 2026. Generally, the leases require payment of property
taxes, utilities, common area maintenance, insurance, and if annual sales at certain stores exceed specified amounts, provide
for additional rents.
We lease approximately 365,000 square feet for our corporate offices. The lease expires in 2023.
Our distribution centers and respective lease expirations as of February 2, 2014, were as follows:
Location
Square
Footage Date Opened Distribution Type Lease Expiration
(In thousands)
Ennis, Texas 230 May 1996 Forward distribution center 2017
Phoenix, Arizona 620 November 1999 Combination distribution center 2021
Columbus, Ohio 613 September 2000 Combination distribution center 2025
Gahanna, Ohio 276 October 2000 Forward distribution center 2015
Hagerstown, Maryland 252 October 2000 Forward distribution center 2015
Ottawa, Illinois 1,000 August 2005 Combination distribution center 2022
Newnan, Georgia 878 July 2007 Combination distribution center 2022
Reno, Nevada 873 April 2008 Combination distribution center 2023
Bethel, Pennsylvania 871 March 2014 Combination distribution center 2028
Total 5,613
In July 2012, we entered into a build-to-suit lease for a new distribution center in Bethel, Pennsylvania, which has an
expected opening date of March 2014, and will ultimately replace two smaller distribution centers located in Gahanna, Ohio
and Hagerstown, Maryland, both of which are nearing capacity.
Item 3. Legal Proceedings
We are involved in the legal proceedings described below and are subject to other claims and litigation arising in the
normal course of our business. We have made accruals with respect to certain of these matters, where appropriate, that are
reflected in our consolidated financial statements but are not, individually or in the aggregate, considered material. For other
matters, we have not made accruals because we have not yet determined that a loss is probable or because the amount of loss
cannot be reasonably estimated. While the ultimate outcome of the matters described below cannot be determined, we
currently do not expect that these proceedings and claims, individually or in the aggregate, will have a material effect on our
consolidated financial position, results of operations, or cash flows. The outcome of any litigation is inherently uncertain,
however, and if decided adversely to us, or if we determine that settlement of particular litigation is appropriate, we may be
subject to liability that could have a material adverse effect on our consolidated financial position, results of operations, or
cash flows. Accordingly, we disclose matters below for which a material loss is reasonably possible. In each case, however,
we have either determined that the range of loss is not reasonably estimable or that any reasonably estimable range of loss is
not material to our consolidated financial statements.
In May 2012, we were named as a defendant in Moore, et al. v. PetSmart, Inc., et al., a lawsuit originally filed in the
California Superior Court for the County of Alameda. PetSmart removed the case to the United States District Court for the
Northern District of California. The complaint brings both individual and class action claims, first alleging that PetSmart
failed to engage in the interactive process and failed to accommodate the disabilities of four current and former named
associates. The complaint also alleges on behalf of current and former hourly store associates that PetSmart failed to provide
pay for all hours worked, failed to properly reimburse associates for business expenses, failed to properly calculate and pay
vacation, failed to provide suitable seating,
and failed to provide timely and uninterrupted meal and rest periods. The lawsuit seeks compensatory damages, statutory
penalties, and other relief, including attorneys' fees, costs, and injunctive relief. In January 2014, the parties entered a
proposed settlement agreement to resolve this matter in line with reserves that were established for this case in the first and
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