Pottery Barn 2012 Annual Report Download - page 61

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in which entities present comprehensive income in their financial statements. The new guidance removes the
presentation options in previous guidance and requires entities to report components of comprehensive income in
either (1) a continuous statement of comprehensive income or (2) two separate but consecutive statements. The
new guidance does not change the items that must be reported in other comprehensive income. We adopted ASU
2011-05 in the first quarter of fiscal 2012 and have included two separate but consecutive statements for all
periods presented.
Note B: Property and Equipment
Property and equipment consists of the following:
Dollars in thousands Feb. 3, 2013 Jan. 29, 2012
Leasehold improvements $ 812,451 $ 812,701
Fixtures and equipment 643,366 597,453
Capitalized software 366,509 310,761
Land and buildings 180,806 137,943
Corporate systems projects in progress 166,839 72,924
Construction in progress 224,971 2,695
Total 2,094,942 1,934,477
Accumulated depreciation (1,282,905) (1,199,805)
Property and equipment, net $ 812,037 $ 734,672
1Corporate systems projects in progress as of February 3, 2013 and January 29, 2012 includes approximately $39.7 million
and $48.2 million, respectively, for the portion of our new inventory and order management system currently under
development and not ready for its intended use.
2Construction in progress is primarily comprised of leasehold improvements and furniture and fixtures related to new,
expanded or remodeled retail stores where construction had not been completed as of year-end.
Note C: Borrowing Arrangements
Long-term debt consists of the following:
Dollars in thousands Feb. 3, 2013 Jan. 29, 2012
Memphis-based distribution facilities obligation $ 5,388 $ 6,924
Capital leases 89 349
Total debt 5,477 7,273
Less current maturities (1,724) (1,795)
Total long-term debt $ 3,753 $ 5,478
Memphis-Based Distribution Facilities Obligation
As of February 3, 2013 and January 29, 2012, total debt of $5,388,000 and $6,924,000, respectively, 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
Note F).
The aggregate maturities of long-term debt at February 3, 2013 were as follows:
Dollars in thousands
Fiscal 2013 $ 1,724
Fiscal 2014 1,785
Fiscal 2015 1,968
Total $ 5,477
47
Form 10-K