Pacific Sunwear, a California corporation, was incorporated in August 1982. The Company is a specialty retailer rooted in the action sports, fashion and music influences of the California lifestyle. It sells a combination of branded and proprietary casual apparel, accessories and footwear designed to appeal to teens and young adults. It operates a nationwide mall-based chain of retail stores under the names Pacific Sunwear and PacSun. In addition, it operates an e-commerce website at www.pacsun.com which sells PacSun merchandise online, provides content and community for its target customers and provides information about the Company. Its stores offer an assortment of casual apparel, footwear and related accessories for young men and women, with the goal of being viewed by its customers as the desired retailer for their lifestyle. The Company has identified three operating segments; PacSun stores and pacsun.com. The two operating segments have been aggregated into one reportable segment based on the similar nature of products sold, production, merchandising and distribution processes involved, target customers, and economic characteristics among the two operating segments. It sells a combination of the same selection of merchandise carried in its stores along with online exclusives at www.pacsun.com. It also advertises its website as a shopping destination on certain Internet portals and search engines and markets its website in its stores. The Company leases and operates 605 stores in each of the 50 states and Puerto Rico. It is the owner in the United States of the marks Pacific Sunwear of California, PacSun, and Pacific Sunwear. It also uses and has registered a number of other marks, including those attributable to its proprietary brands such as Bullhead, On the Byas, Kirra, Nollie, Black Poppy, LA Hearts and With Love From California. The Company competes with Abercrombie & Fitch, Aéropostale, Amazon, American Eagle Outfitters, The Buckle, Forever 21, H&M, Hollister, J.C. Penney, Karma Loop, Killerdana, Kohl's, Macy's, Nastygal, Nordstrom, Old Navy, Swell, Target, Tilly's, Top Shop, Urban Outfitters, The Wet Seal, Zappos, Zara and Zumiez. The Company's trademarks include Pacific Sunwear of California, PacSun, and Pacific Sunwear.