Item 2. Properties

     Our general corporate headquarters and the corporate headquarters of our PFS service fee and Supplies Distributors businesses are located in Plano, Texas, a Dallas suburb. Our eCOST corporate headquarters is located in El Segundo, California.

     In the U.S., we operate two distribution facilities in Memphis, Tennessee, with aggregate space of approximately 600,000 square feet. We also operate approximately 825,000 square feet of distribution facilities in Southaven, Mississippi. Both of these complexes are located approximately five miles from the Memphis International Airport. We also manage a distribution facility in Grapevine, Texas with approximately 200,000 square feet.

     We operate a distribution center in Liege, Belgium with approximately 150,000 square feet, which contains advanced distribution systems and equipment. We operate a distribution center in Toronto, Canada with approximately 23,000 square feet. We also operate a facility in the Philippines with approximately 7,000 square feet to provide call center and customer service functions. We operate customer service centers in our facilities in Tennessee, Texas, Belgium and the Philippines. Our call center technology permits the automatic routing of calls to available customer service representatives in several of our call centers.

     Except for the Grapevine, Texas facility, which we manage on our client’s behalf, all of our facilities are leased and the material lease agreements contain one or more renewal options.

Item 3. Legal Proceedings

     We are not party to any legal proceedings other than routine claims and lawsuits arising in the ordinary course of our business. We do not believe such claims and lawsuits, individually or in the aggregate, will have a material adverse effect on our business.

Item 4. Reserved