Restoration Hardware 2015 Annual Report Download - page 31

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28
Owned Properties
We currently own two galleries, the approximately 9,000 square foot property which is the location of our Gallery in San
Francisco’s Design District and the approximately 19,000 square foot property which is the location of our Gallery in Toronto,
Canada.
Additionally, we own property in Yountville, California, which is the location of our wine tasting room and is expected to be the
location of a Design Gallery in the future.
We believe that our current offices and facilities are in good condition, are being used productively and are adequate to meet our
requirements for the foreseeable future.
Item 3. Legal Proceedings
From time to time, we and/or our management are involved in litigation, claims and other proceedings relating to the conduct of
our business, including purported class action litigation. Such legal proceedings may include claims related to our employment
practices, wage and hour claims, claims of intellectual property infringement, including with respect to trademarks and trade dress,
claims asserting unfair competition and unfair business practices, claims with respect to our collection and sale of reproduction
products, and consumer class action claims relating to our consumer practices including the collection of zip code or other information
from customers. In addition, from time to time, we are subject to product liability and personal injury claims for the products that we
sell and the stores we operate. Subject to certain exceptions, our purchase orders generally require the vendor to indemnify us against
any product liability claims; however, if the vendor does not have insurance or becomes insolvent, we may not be indemnified. In
addition, we could face a wide variety of employee claims against us, including general discrimination, privacy, labor and
employment, ERISA and disability claims. Any claims could result in litigation against us and could also result in regulatory
proceedings being brought against us by various federal and state agencies that regulate our business, including the U.S. Equal
Employment Opportunity Commission. Often these cases raise complex factual and legal issues, which are subject to risks and
uncertainties and which could require significant management time. Litigation and other claims and regulatory proceedings against us
could result in unexpected expenses and liability and could also materially adversely affect our operations and our reputation.
For additional information, refer to Note 18—Commitments and Contingencies in our consolidated financial statements within
Part II of this Annual Report on Form 10-K.
Item 4. Mine Safety Disclosures
Not applicable.