L.L. Bean, Inc., Leon Gorman, Tax Matters Person - Page 13

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          levels which act as fire baffles to trap the heat and activate              
          the sprinkler heads.                                                        
               The Reserve Facility was designed, and is used, for the                
          storage and retrieval of merchandise in boxes.  Merchandise                 
          arrives at petitioner's distribution center at the Receiving                
          Building adjacent to the Reserve Facility.  The merchandise is              
          unloaded at the receiving staging area of the Receiving Building            
          where petitioner's employees sort the boxes according to size.              
          All boxes are tagged with a bar code for identification of the              
          inventory therein and are banded and sent by conveyor to a pallet           
          loading station in the 1979 Shipping Building.  There, workers              
          load the boxes onto pallets where they are delivered to the                 
          Reserve Facility or to other locations by forklift operators.               
               The boxes that are stored in the Reserve Facility are                  
          standard-sized boxes holding reserve merchandise inventory that             
          is not required in petitioner's daily order picking, packing, and           
          shipment operation.  The boxes are stored in the Reserve Facility           
          on the shelves of the storage rack system.  Pallets holding boxes           
          to be stored in the Reserve Facility are placed on "loading"                
          conveyors located at the end of every other rack aisle on the               
          Reserve Facility's mezzanine.  Each pallet is then loaded by a              
          transtacker operator onto the platform of a transtacker using a             
          mechanical device that is built into the transtacker.                       
               To store boxes on the Reserve Facility's shelves, the                  
          transtacker operator visually searches the racks for empty                  




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