Petsmart 2007 Annual Report Download - page 71

Dividends
In 2007 and 2006, the Board of Directors declared the following dividends:
Date Declared
Dividend
Amount per
Share
Stockholders of
Record Date Date Paid
2007:
March 27, 2007 ................... $0.03 April 27, 2007 May 11, 2007
June 20, 2007 ..................... $0.03 July 27, 2007 August 10, 2007
September 19, 2007 ................ $0.03 October 26, 2007 November 9, 2007
December 13, 2007................. $0.03 February 1, 2008 February 15, 2008
2006:
March 28, 2006 ................... $0.03 April 28, 2006 May 12, 2006
June 22, 2006 ..................... $0.03 July 28, 2006 August 11, 2006
September 20, 2006 ................ $0.03 October 27, 2006 November 10, 2006
December 12, 2006................. $0.03 January 26, 2007 February 9, 2007
Note 9 — Employee Benefit Plans
We have a defined contribution plan pursuant to Section 401(k) of the Internal Revenue Code, or the 401(k)
Plan. The 401(k) Plan covers substantially all employees that meet certain service requirements. We match
employee contributions, up to specified percentages of those contributions, as approved by the Board of Directors.
In addition, certain employees can elect to defer receipt of certain salary and cash bonus payments pursuant to our
Non-Qualified Deferred Compensation Plan. We match employee contributions up to certain amounts as defined in
the Non-Qualified Deferred Compensation Plan documents. During 2007, 2006 and 2005, we recognized expense
related to matching contributions under these Plans of $3.7 million, $4.4 million and $3.3 million, respectively.
Note 10 — Financing Arrangements and Lease Obligations
Credit Facility and Letter of Credit Facility
In August 2007, we replaced our existing $125.0 million credit facility with a $350.0 million revolving credit
facility that expires on August 15, 2012. Borrowings under the credit facility are subject to a borrowing base and
bear interest, at our option, at a bank’s prime rate plus 0% to 0.25% or LIBOR plus 0.875% to 1.25%. We are subject
to fees payable to lenders each quarter at an annual rate of 0.20% of the unused amount of the credit facility. The
credit facility also gives us the ability to issue letters of credit, which reduce the amount available under the credit
facility. Letter of credit issuances under the credit facility are subject to interest payable to the lenders and bear
interest of 0.875% to 1.25% for standby letters of credit or 0.438% to 0.625% for commercial letters of credit.
In August 2007, we borrowed $100.0 million under the credit facility to fund a portion of our $225.0 million
ASR agreement. As of February 3, 2008, we had $30.0 million in borrowings and $70.4 million in letter of credit
issuances outstanding under our credit facility. In accordance with ARB No. 43, “Restatement and Revisions of
Accounting Research Bulletins,” the $30.0 million in borrowings under the revolving credit facility were classified
as short-term debt in the Consolidated Balance Sheets because we intend to repay the borrowings within 12 months.
We also have a $70.0 million stand-alone letter of credit facility. This letter of credit facility expires on June 30,
2009, and we are subject to fees payable to the lenders each quarter at an annual rate of 0.20% of the average daily
face amount of the letters of credit outstanding during the preceding calendar quarter. In addition, we are required to
maintain a deposit with the lenders equal to the amount of outstanding letters of credit or, in the case of auction rate
securities, must have an amount on deposit, which, when multiplied by the advance rate of 85%, is equal to the
amount of outstanding letters of credit under this stand-alone letter of credit facility. As of February 3, 2008, we had
F-21
PetSmart, Inc. and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)