L.L. Bean, Inc., Leon Gorman, Tax Matters Person - Page 18

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          Building.  Some of the conveyors rest on and are partially                  
          supported by the mezzanine floor.                                           
               The ground-level racks, supporting columns, and stairways of           
          the Mezzanine System are joined to the floor of the 1986 Shipping           
          Building by bolts.  Except for certain utility and flooring                 
          connections, the sides of the Mezzanine System are not attached             
          to the 1986 Shipping Building.  Instead, diagonal bracing is used           
          to provide the required lateral support.  Consequently, the                 
          Mezzanine System does not rely on the 1986 Shipping Building                
          structure (other than the floor) for support, nor does it provide           
          support for the 1986 Shipping Building.  Use of this integrated             
          storage and structural support system for the mezzanine floor               
          level offers petitioner cost savings in reduced structural steel,           
          reduced labor costs, and increased storage efficiencies.                    
               The Mezzanine System is used to store merchandise for ready            
          access and individual order picking in petitioner's distribution            
          center.  In the order picking process, petitioner's employees               
          collect or "pick" individual items of merchandise from                      
          merchandise stored on shelves in order to fill a specific                   
          customer order.  Merchandise is brought from other areas of                 
          petitioner's distribution center by forklift operators where                
          pallets are either left on the first floor of the 1986 Shipping             
          Building or sent up to a staging area on the mezzanine floor.               
          Workers unload the pallets into carts and manually distribute the           
          goods to specific locations on the Mezzanine's storage shelving.            




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