Petsmart 2009 Annual Report Download - page 13

PetSmart Charities and Adoptions
Through PetSmart Charities, Inc., an independent 501(c)(3) organization, we support the activities of animal
welfare organizations in North America. PetSmart Charities creates and supports programs to help find a lifelong
loving home for every pet by:
• Raising awareness of companion animal welfare issues;
• Funding programs to further individual animal welfare organizations’ missions; and
• Facilitating adoptions through in-store programs and pet transport programs.
Since 1994, PetSmart Charities has funded more than $109 million in grants and programs benefiting animal
welfare organizations and, through its in-store adoption programs, has helped save the lives of more than 4 million
pets.
Government Regulation
We are subject to various federal, state, provincial and local laws and regulations governing, among other
things: our relationships with employees, including minimum wage requirements, overtime, working conditions
and citizenship requirements; veterinary practices or the operation of veterinary hospitals in retail stores that may
impact our ability to operate veterinary hospitals in certain facilities; the transportation, handling and sale of small
pets; the generation, handling, storage, transportation and disposal of waste and biohazardous materials; the
distribution, import/export and sale of products; the handling, security, protection and use of customer and associate
information; and the licensing and certification of services.
We seek to structure our operations to comply with all federal, state, provincial and local laws and regulations
of each jurisdiction in which we operate. Given varying and uncertain interpretations of these laws and regulations,
and the fact the laws and regulations are enforced by the courts and regulatory authorities with broad discretion, we
can make no assurances we would be found to be in compliance in all jurisdictions at all times. We also could be
subject to costs, including fines, penalties or sanctions and third-party claims as a result of violations of, or liabilities
under, these laws and regulations.
Intellectual Property
We believe our intellectual property has significant value and is an important component in our merchandising
and marketing strategies. Some of our intellectual property includes numerous servicemarks and trademarks
registered with the United States Patent and Trademark Office, or “USPTO,” including: PetSmart», PetSmart.com»,
PetSmart PetsHotel», PetPerks», and Where Pets Are Family», as well as many others. We also have several
servicemark and trademark applications that are pending with the USPTO and anticipate filing additional
applications in the future. We also own numerous registered servicemarks, trademarks and pending applications
in other countries, including Canada, as well as several trade names, domain names, and copyrights for use in our
business.
Employees
As of January 31, 2010, we employed approximately 45,000 associates, approximately 22,000 of whom were
employed full-time. We continue to invest in education for our full and part-time associates as part of our emphasis
on customer service and providing pet care solutions. We are subject to no collective bargaining agreements and
have experienced no work stoppages. We consider our relationship with our associates to be a positive one.
Increases in the federal and state minimum wage in recent years have not had a material effect on our business.
Financial Information by Business Segment and Geographic Data
Operating segments are components of an enterprise about which separate financial information is available
that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in
assessing performance. Utilizing these criteria, we manage our business on the basis of one reportable operating
segment.
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