Pottery Barn 2006 Annual Report Download - page 43

of long-term obligations, including capital leases and long-term debt, partially offset by $28,002,000 in proceeds
from the exercise of stock options.
Stock Repurchase Program
During fiscal 2006, we repurchased and retired a total of 5,824,500 shares of common stock under all programs
previously authorized at a weighted average cost of $31.85 per share and an aggregate cost of approximately
$185,508,000. As of fiscal year-end, the remaining authorized number of shares eligible for repurchase was
1,195,500.
In March 2007, our Board of Directors authorized a stock repurchase program to acquire up to an additional
5,000,000 shares of our common stock 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, capital availability, 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 28, 2007:
Payments Due by Period
Dollars in thousands Fiscal 2007
Fiscal 2008
to Fiscal 2010
Fiscal 2011
to Fiscal 2012 Thereafter Total
Memphis-based distribution facilities obligation $ 1,490 $ 4,484 $ 2,949 $ 5,389 $ 14,312
Mississippi industrial development bonds 14,200 — — — 14,200
Capital leases 163 — — — 163
Interest11,995 4,578 1,942 937 9,452
Operating leases2,3 191,638 534,941 303,652 561,311 1,591,542
Purchase obligations4738,285 3,050 — — 741,335
Total $947,771 $547,053 $308,543 $567,637 $2,371,004
1Represents interest expected to be paid on our long-term debt, Mississippi 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.
Memphis-Based Distribution Facilities Obligation
As of January 28, 2007, long-term debt of $14,312,000 consisted of bond-related debt pertaining to the
consolidation of our Memphis-based distribution facilities in accordance with FASB Interpretation No. (“FIN”)
46R, “Consolidation of Variable Interest Entities.” See discussion of the consolidation of our Memphis-based
distribution facilities at Note F to our Consolidated Financial Statements.
Mississippi Industrial Development Bonds
In June 2004, in an effort to utilize tax incentives offered to us by the state of Mississippi, we entered into an
agreement whereby the Mississippi Business Finance Corporation issued $15,000,000 in long-term variable rate
industrial development bonds, the proceeds, net of debt issuance costs, of which were loaned to us to finance the
acquisition and installation of leasehold improvements and equipment located in our Olive Branch distribution
center. The bonds are marketed through a remarketing agent and are secured by a letter of credit issued under our
$300,000,000 line of credit facility. The bonds mature on June 1, 2024. The bond rate resets each week based
upon current market rates. The rate in effect at January 28, 2007 was 5.4%.
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Form 10-K