Staples 2007 Annual Report Download - page 88

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DISTRIBUTION AND FULFILLMENT CENTERS
Country/State/Province/Region/ Number of Country/State/Province/Region/ Number of Country/State/Province/Region/ Number of
Territory Centers Territory Centers Territory Centers
United States Pennsylvania .......... 2 France
California ............ 4 South Carolina ......... 1 Ile de France .......... 2
Colorado ............. 1 Texas ............... 2 Nord—Pas de Calais ..... 1
Connecticut ........... 2 Wisconsin ............ 1 3
Florida .............. 1 30
Georgia .............. 2 Austria .............. 1
Canada
Illinois ............... 1 Belgium .............. 1
Alberta .............. 1
Indiana .............. 1 Denmark ............. 1
British Columbia ........ 1
Iowa ................ 1 Germany ............. 2
Nova Scotia ........... 1
Kansas .............. 1 Italy ................ 1
Ontario .............. 2
Maryland ............. 1 Portugal ............. 1
Quebec .............. 1
Massachusetts .......... 2 The Netherlands ........ 1
6
Minnesota ............ 1 Spain ............... 1
United Kingdom
New Jersey ........... 1 Sweden .............. 1
Northamptonshire ....... 1
New York ............ 2 China ............... 8
Watling Park .......... 1
North Carolina ......... 1 Argentina ............ 1
Ohio ................ 1 Brazil ............... 3
2
Oregon .............. 1
Most of the existing facilities are leased by us with initial lease terms expiring on dates between 2008 and 2027. In
most instances, we have renewal options at increased rents. Leases for 187 of the existing stores provide for contingent
rent based upon sales.
Our Framingham, Massachusetts corporate office is owned by us and consists of approximately 650,000 square feet.
Item 3. Legal Proceedings
From time to time, we may be subject to routine litigation incidental to our business.
We settled various class action lawsuits brought against us for alleged violations of what is known as California’s
‘‘wage and hour’’ law. The first of these lawsuits was filed on October 21, 1999. These cases were subsequently
consolidated as the ‘‘Staples Overtime Cases,’’ Superior Court for the State of California, County of Orange, Civil
Complex Center (Judicial Council Coordination Proceeding No. 4235, Lead Case No. 816121). The plaintiffs in the
Staples Overtime Cases alleged that we improperly classified store general managers and store assistant managers as
exempt under the California wage and hour law, making such managers ineligible for overtime wages. The plaintiffs
sought to require us to pay overtime wages to the putative class since October 21, 1995. The general manager and
assistant manager classes were certified by the court in November 2005. Staples and the general manager class in the
Staples Overtime Cases settled in December 2006 for $3.9 million. The remaining class action lawsuit concerning
assistant managers continued. In September 2007, in the United States District for the Central District of California,
Frigo v. Staples, Inc., another class and collective action lawsuit was filed, purportedly on behalf of all assistant managers
in Staples’ California stores, including those individuals who started working for Staples after the previous class action
notice was sent to the then current and former assistant managers seeking payment of overtime wages. Subject to court
approval, Staples settled with the assistant store manager class in both Frigo and the Staples Overtime Cases on
November 19, 2007 for $38.0 million, with the settlements covering a span of twelve years of potential damages, including
interest and class counsel’s attorneys’ fees, for a class of more than 1,700 current and former associates. We anticipate
obtaining final court approval of the settlement in April 2008. Staples has not admitted any wrongdoing with respect to
either class of associates in these actions.
Item 4. Submission of Matters to a Vote of Security Holders
No matter was submitted to a vote of our security holders during the fourth quarter of fiscal 2007.
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