Petsmart 2005 Annual Report Download - page 73

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Reclassifications
For comparative purposes, certain prior year amounts have been reclassified to conform to the current year
presentation.
Note 2 — Change in Accounting Principle and Reclassifications in Consolidated Financial Statements
and Notes to Consolidated Financial Statements
During fiscal 2005, the Company adopted the fair value recognition provisions of SFAS No. 123(R) using the
modified retrospective transition method, which allows the adjustment of prior periods by recognizing compen-
sation cost in the amounts previously reported in the pro forma footnote disclosure under the provisions of
SFAS No. 123. In addition, certain prior year amounts relating to leasehold improvement amortization have been
reclassified to conform to the current year presentation.
Following is a summary of the effects of the adjustments and reclassifications described above (in thousands,
except per share data):
Fiscal Year Ended January 30, 2005
As Previously
Reported Adjustments
As Currently
Reported
Consolidated Statements of Operations
Cost of sales .................................. $2,328,252 $ (3,387) $2,324,865
Gross profit ................................... 1,035,200 3,387 1,038,587
Operating, general and administrative expenses ........ 754,221 27,027 781,248
Operating income .............................. 280,979 (23,640) 257,339
Income before income tax expense .................. 264,444 (23,640) 240,804
Income tax expense ............................. 93,216 (9,865) 83,351
Net income ................................... 171,228 (13,775) 157,453
Basic earnings per common share .................. $ 1.19 $ (0.10) $ 1.09
Diluted earnings per common share ................. $ 1.14 $ (0.09) $ 1.05
Fiscal Year Ended February 1, 2004
As Previously
Reported Adjustments
As Currently
Reported
Consolidated Statements of Operations
Cost of sales .................................. $2,095,164 $ (2,167) $2,092,997
Gross profit ................................... 897,951 2,167 900,118
Operating, general and administrative expenses ........ 660,972 20,298 681,270
Operating income .............................. 236,979 (18,131) 218,848
Income before income tax expense .................. 221,087 (18,131) 202,956
Income tax expense ............................. 85,685 (7,680) 78,005
Net income ................................... 135,402 (10,451) 124,951
Basic earnings per common share .................. $ 0.96 $ (0.07) $ 0.88
Diluted earnings per common share ................. $ 0.92 $ (0.07) $ 0.85
F-14
PetSmart, Inc. and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)