Petsmart 2009 Annual Report Download - page 63

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Note 4 — Property and Equipment
Property and equipment consists of the following (in thousands):
January 31,
2010
February 1,
2009
Land ................................................... $ 691 $ 691
Buildings................................................ 15,089 15,773
Furniture, fixtures and equipment .............................. 926,763 889,478
Leasehold improvements .................................... 581,684 539,213
Computer software......................................... 97,319 109,704
Buildings, equipment and computer software under capital leases ...... 683,712 673,330
2,305,258 2,228,189
Less: accumulated depreciation and amortization .................. 1,141,122 975,668
1,164,136 1,252,521
Construction in progress..................................... 37,721 49,724
Property and equipment, net .................................. $1,201,857 $1,302,245
We recognize capitalized interest primarily for interest expense incurred during the construction period for
new stores. Capitalized interest was approximately $0.2 million, $1.6 million and $2.4 million in 2009, 2008 and
2007, respectively. Capitalized interest is included in property and equipment, net in the Consolidated Balance
Sheets.
Note 5 — Reserve for Closed Stores
The components of the reserve for closed stores were as follows (in thousands):
January 31,
2010
February 1,
2009
Total remaining gross occupancy costs ........................... $33,577 $ 34,107
Less:
Expected sublease income ................................... (24,018) (26,604)
Interest costs ............................................. (1,343) (1,121)
Reserve for closed stores...................................... $ 8,216 $ 6,382
Current portion, included in other current liabilities .................. 2,395 2,271
Noncurrent portion, included in other noncurrent liabilities ............ 5,821 4,111
Reserve for closed stores...................................... $ 8,216 $ 6,382
F-15
PetSmart, Inc. and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)