Pottery Barn 2007 Annual Report Download - page 40

Stock Repurchase Program
During fiscal 2007, we repurchased and retired a total of 6,195,500 shares of common stock, completing all
programs previously authorized, at a weighted average cost of $30.73 per share and an aggregate cost of
approximately $190,378,000.
In January 2008, our Board of Directors authorized the repurchase of up to an additional $150,000,000 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
February 3, 2008:
Payments Due by Period5
Dollars in thousands Fiscal 2008
Fiscal 2009
to Fiscal 2011
Fiscal 2012
to Fiscal 2013 Thereafter Total
Memphis-based distribution facilities obligation $ 1,584 $ 4,313 $ 3,171 $ 3,754 $ 12,822
Interest11,619 3,822 1,616 809 7,866
Mississippi industrial development bonds 13,150 — — — 13,150
Operating leases2,3 214,502 589,332 314,894 613,371 1,732,099
Purchase obligations4570,226 2,343 — — 572,569
Total $801,081 $599,810 $319,681 $617,934 $2,338,506
1Represents interest expected to be paid on our long-term debt and Mississippi industrial development bonds.
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.
5This table excludes $44.2 million of liabilities for uncertain tax positions under FIN 48, as we are not able to reasonably
estimate when cash payments for these liabilities will occur. This amount, however, has been recorded as a liability in the
accompanying Consolidated Balance Sheet as of February 3, 2008.
Memphis-Based Distribution Facilities Obligation
As of February 3, 2008, long-term debt of $12,822,000 consisted entirely of bond-related debt pertaining to the
consolidation of our Memphis-based distribution facilities in accordance with 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, Mississippi
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 February 3, 2008 was 3.4%.
The bond agreement allows for each bondholder to tender their bonds to the trustee for repurchase, on demand,
with seven days advance notice. In the event the remarketing agent fails to remarket the bonds, the trustee will
draw upon the letter of credit to fund the purchase of the bonds. As of February 3, 2008, $13,150,000 remained
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