Restoration Hardware 2015 Annual Report Download - page 30

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27
We are required to comply with the New York Stock Exchange (“NYSE”) listing requirements, including its independence
requirements. Failure by us to comply with the NYSE listing requirements could result in us receiving a deficiency or delisting
notice from the NYSE.
We are required to comply with the NYSE listing requirements, including its requirement that the board of directors of a listed
company be comprised of a majority of independent directors. While we are currently in compliance with this requirement, we may in
the future temporarily fail to comply with it due to factors that are outside of our control. Failure by us to comply with the NYSE
listing requirements could result in us receiving a deficiency or delisting notice from the NYSE.
On November 12, 2014, we notified the New York Stock Exchange (the “NYSE”) that, due to the resignation of an independent
director from our board of directors effective November 7, 2014, we had only four independent directors serving on our then eight-
member board of directors. Accordingly, effective November 7, 2014, our board of directors did not satisfy Section 303A.01 of the
NYSE Listed Company Manual, which requires that the board of directors of a listed company be comprised of a majority of
independent directors. Our board of directors subsequently appointed a new independent director effective January 22, 2015 and we
have regained compliance with Section 303A.01 of the NYSE Listed Company Manual.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
We leased approximately 1,400,000 leased gross square feet for 51 legacy Galleries, 6 larger format Design Galleries, 4 next
generation Design Galleries, 1 RH Modern Gallery, 5 RH Baby & Child Galleries and 17 outlet stores that were open as of January
30, 2016. The initial lease term of our retail galleries generally ranges from 10 to 15 years, and certain leases contain renewal options
for up to an additional 25 years.
Most leases for our retail galleries provide for a minimum rent, typically including escalating rent increases. In addition, certain
leases have a percentage rent based upon sales after minimum thresholds are achieved. Leases generally require us to pay insurance,
utilities, real estate taxes, repair and maintenance expenses, and common area maintenance.
Leased Properties
The following table summarizes the location and size of our leased distribution centers and corporate facilities occupied as of
January 30, 2016:
Location Purpose Lease Expiration
Occupied Square Footage
(Approximate)
Supply Chain
Patterson, California ......................... Distribution center August 2030 1,501,000
West Jefferson, Ohio ........................ Distribution center / Customer service center April 2028 1,224,000
N
orth East, Maryland ....................... Distribution center February 2028 1,195,000
Mira Loma, California ......................
Distribution center / Home delivery /
Customer service center June 2020 886,000
Grand Prairie, Texas ......................... Distribution center / Home deliver
y
August 2028 859,000
Baltimore, Maryland ......................... Distribution center / Home deliver
June 2016 508,000
Tracy, California ............................... Home delivery / Customer service center September 2016 284,000
Dedham, Massachusetts .................... Home delivery June 2020 119,000
Avenel, New Jerse
y
.......................... Home delivery
N
ovember 2016 114,000
Atlanta, Georgia................................ Home delivery January 2020 101,000
Pompano Beach, Florida ................... Home delivery October 2020 101,000
Houston, Texas ................................. Home delivery August 2018 71,000
Carmel, New York ............................ Home delivery January 2017 40,000
Corporate Facilities
Corte Madera, California
(1)
.............. Corporate headquarters May 2028 265,000
Richmond, California ....................... Warehouse September 2022 259,000
San Rafael, California ....................... Warehouse July 2016 10,000
Pleasanton, California ....................... Corporate office June 2020 8,000
(1) Includes approximately 23,000 square feet of warehouse space.