Pottery Barn 2004 Annual Report Download - page 28

For fiscal 2003, cash used in financing activities was $28,226,000, comprised primarily of $59,695,000 for the
repurchase of common stock and $7,610,000 for the repayment of long-term obligations, including capital leases
and long-term debt, partially offset by $39,120,000 in proceeds from the exercise of stock options.
Stock Repurchase Program
In May 2004, the Board of Directors authorized a stock repurchase program to acquire up to 2,500,000 shares of
our outstanding common stock. During fiscal 2004, we repurchased and retired 2,057,700 shares of our common
stock under this program, in addition to 215,000 shares under our previously authorized stock repurchase
program, at a total cost of approximately $79,320,000, a weighted average cost of $34.90 per share. As of year-
end, the remaining authorized number of shares eligible for repurchase was 442,300 shares. Stock repurchases
under this program may be made through open market and privately negotiated transactions at times and in such
amounts as management deems appropriate. The timing and actual number of shares repurchased will depend on
a variety of factors including price, corporate and regulatory requirements and other market conditions. The stock
repurchase program does not have an expiration date and may be limited or terminated at any time without prior
notice.
Contractual Obligations
The following table provides summary information concerning our future contractual obligations as of January
30, 2005.
Payments Due by Period
Dollars in thousands Fiscal 2005
Fiscal 2006
to Fiscal 2008
Fiscal 2009
to Fiscal 2010 Thereafter Total
Long-term debt $ 7,020 $ 4,458 $ 2,900 $ 8,338 $ 22,716
Industrial development bonds 14,200 — — — 14,200
Capital leases 2,215 3,458 — — 5,673
Interest12,630 5,327 2,422 2,263 12,642
Operating leases2, 3 164,993 483,551 281,774 591,316 1,521,634
Purchase obligations4596,409 15,022 4 — 611,435
Total $787,467 $511,816 $287,100 $601,917 $2,188,300
1Represents interest expected to be paid on our long-term debt, industrial development bonds and capital leases.
2See discussion on operating leases in the “Off Balance Sheet Arrangements” section and Note E to our Consolidated
Financial Statements.
3Projected payments include only those amounts that are fixed and determinable as of the reporting date.
4Represents estimated commitments at year-end to purchase inventory and other goods and services in the normal course of
business to meet operational requirements.
Long-Term Debt
At January 30, 2005, long-term debt of $22,716,000 consisted of unsecured senior notes of $5,716,000 and
$17,000,000 of bond-related debt. The final payment on the senior notes is due in August 2005 with interest
payable semi-annually at 7.2% per annum. The senior notes rank equally in right of payment with any of our
existing and future unsubordinated, unsecured debt and contain certain financial covenants including a minimum
tangible net worth covenant, a fixed charge coverage ratio and limitations on current and funded debt.
The bond-related debt pertains to the consolidation of our Memphis-based distribution facilities in accordance
with FIN 46R. See discussion of the consolidation of our Memphis-based distribution facilities at Note F to our
Consolidated Financial Statements.
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Form 10-K