Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of John Shanley with Susquehanna Financial. Please go ahead.
John Shanley - Susquehanna Financial
Thank you and good afternoon. Matt, can you give us an update regarding the status of the [inaudible] trademark litigation? And have you received anything from your attorneys concerning when there is likely to be a final determinant as far as any outstanding payments of damages for this litigation?
Matthew E. Rubel
Well, the case is over at the district court level and pending certain administrative matters with respect to pairing the case, at this point, we are set to go for appeal and so our focus is on -- you know, we feel we have a very strong case for appeal and that is what we are focusing on.
John Shanley - Susquehanna Financial
You’re appealing the smaller amount that the judge basically determined was the correct amount?
Matthew E. Rubel
Yes, at this point, that is the way we are proceeding.
John Shanley - Susquehanna Financial
Okay. All right, the other question I had is can you give us an idea of whether you are receiving more favorable lease terms in terms of your discussions on lease renewals with landlords? And can you give us an idea of approximately how may store leases in the domestic chain come up for renewal every year?
Matthew E. Rubel
We have approximately 800 to 900 leases that come up every year and we are partnering with our landlords. And I think that we have to make sure that we are very thoughtful about how we do it with them, that we are respectful of what their needs are and our needs, and so far we are finding the smart landlords to be very open to working with us. I want to compliment our team. I think they are doing a great job in terms of really mapping out a thoughtful strategy, landlord by landlord, store by store and we are making progress on everything from lower rent, shorter terms, more variability, taking rents down to a structure that goes against a standard that we’ve created with each landlord, all the way to moving out step rents and all sorts of things. So you know, they are on it. It’s very cumbersome and it’s very complex but I would say that we are making progress and I want to thank our team but also thank our landlords for being appropriate, because the last thing we want is another empty slot in a mall and there’s a lot out there, having been in malls a lot the last week-and-a-half.
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