Pottery Barn 2011 Annual Report Download - page 48

For fiscal 2011, net cash used in financing activities was $259,039,000 compared to $178,315,000 in fiscal 2010.
Net cash used in financing activities in fiscal 2011 was primarily attributable to repurchases of $194,429,000 of
common stock and the payment of dividends of $68,877,000. Net cash used in financing activities in fiscal 2011
increased compared to fiscal 2010 primarily due to an increase in our repurchase of common stock.
For fiscal 2010, net cash used in financing activities was $178,315,000 compared to $55,498,000 in fiscal 2009.
Net cash used in financing activities in fiscal 2010 was primarily attributable to the repurchase of $125,000,000
of common stock and the payment of dividends of $59,160,000. Net cash used in financing activities in fiscal
2010 increased compared to fiscal 2009 primarily due to the repurchase of common stock.
Dividend Policy
See section titled Dividend Policy within Part II, Item 5 of this Annual Report on Form 10-K for further information.
Stock Repurchase Program
See section titled Stock Repurchase Program within Part II, Item 5 of this Annual Report on Form 10-K for
further information.
Contractual Obligations
The following table provides summary information concerning our future contractual obligations as of
January 29, 2012:
Payments Due by Period1
Dollars in thousands Fiscal 2012
Fiscal 2013
to Fiscal 2015
Fiscal 2016
to Fiscal 2017 Thereafter Total
Capital leases $ 260 $ 89 $ — $ — $ 349
Memphis-based distribution
facilities obligation 1,535 5,389 — — 6,924
Interest2697 1,084 — — 1,781
Operating leases3221,591 534,023 257,240 373,385 1,386,239
Purchase obligations4579,803 4,841 150 — 584,794
Total $803,886 $545,426 $257,390 $373,385 $1,980,087
1This table excludes $14.0 million of liabilities for unrecognized tax benefits associated with uncertain tax positions as we
are not able to reasonably estimate when and if cash payments for these liabilities will occur. This amount, however, has
been recorded as a liability in the accompanying Consolidated Balance Sheet as of January 29, 2012.
2Represents interest expected to be paid on our long-term debt and our capital leases.
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 29, 2012, total debt of $6,924,000 consists entirely of bond-related debt pertaining to the
consolidation of one of our Memphis-based distribution facilities due to its related party relationship and our
obligation to renew the lease until the bonds are fully repaid. See discussion of our Memphis-based distribution
facilities at Note F to our consolidated financial statements.
Operating Leases
We lease store locations, distribution centers, customer care centers, corporate facilities and certain equipment
for original terms ranging generally from 3 to 22 years. Certain leases contain renewal options for periods up to
20 years. The rental payment requirements in our store leases are typically structured as either minimum rent,
minimum rent plus additional rent based on a percentage of store sales if a specified store sales threshold is
exceeded, or rent based on a percentage of store sales if a specified store sales threshold or contractual obligation
of the landlord has not been met. Contingent rental payments, including rental payments that are
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