HBI » Topics » Properties

This excerpt taken from the HBI 8-K filed Sep 5, 2006.

Properties

We own and lease facilities supporting our administrative, manufacturing, distribution, and direct outlet activities. We own our approximately 470,000 square-foot headquarters located in Winston-Salem, North Carolina. Our headquarters house our various sales, marketing and corporate business functions. Research and development as well as certain product-design functions also are located in Winston-Salem, while other design functions are located in New York City and other research facilities are located in London.

As of April 1, 2006, we have 165 manufacturing and distribution facilities in 24 countries. We own approximately 70 of our manufacturing and distribution facilities and lease approximately 95 of the remaining manufacturing and distribution facilities. The leases for these facilities expire between 2006 and 2014, with the exception of some seasonal warehouses which we lease on a month-by-month basis. For more information about our capital lease obligations, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Future Contractual Obligations and Commitments.”

We also operate 229 direct outlet stores in 41 states, most of which are leased under five-year, renewable lease agreements. We believe that our facilities, as well as equipment, are in good condition and meet our current business needs.

A summary of current facility space by country is provided as follows:

 

Facilities by Country

       Owned Sq. Ft            Leased Sq. Ft.        Total

United States

   14,085,029    5,232,544    19,318,573

Non-U.S. facilities:

        

Mexico

   1,292,647    352,249    1,644,896

Dominican Republic

   848,000    464,456    1,312,456

Puerto Rico

   —      751,053    751,053

Honduras

   382,001    384,784    766,785

Canada

   316,780    292,938    609,718

Germany

   —      17,224    17,224

Costa Rica

   475,422    118,774    594,196

El Salvador

   187,056    47,340    234,396

Argentina

   102,434    1,896    104,330

Brazil

   —      175,947    175,947

13 other countries

   —      203,531    203,531
              

Total non-U.S. facilities

   3,604,340    2,810,192    6,414,532
              

Total

   17,690,369    8,042,736    25,733,105
              

 

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Table of Contents

A summary of our current facility space by segment is as follows:

Facilities by Segment*

   # Facilities    Leased SF    Owned SF    Totals

Innerwear

   75    4,448,977    6,828,874    11,277,851

Outerwear

   31    765,091    6,200,402    6,965,493

Hosiery

   5    134,000    1,605,662    1,739,662

International

   54    1,370,213    772,196    2,142,409

Totals

   165    6,718,281    15,407,134    22,125,415

* Excludes Sara Lee Direct Outlet stores, property held for sale and office buildings housing corporate functions.
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