Pottery Barn 2013 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2013 Pottery Barn annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 156

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156

Note B: Property and Equipment
Property and equipment consists of the following:
Dollars in thousands Feb. 2, 2014 Feb. 3, 2013
Leasehold improvements $ 847,351 $ 812,451
Fixtures and equipment 698,275 643,366
Capitalized software 419,432 366,509
Land and buildings 188,498 180,806
Corporate systems projects in progress 172,693 66,839
Construction in progress 25,519 24,971
Total 2,231,768 2,094,942
Accumulated depreciation (1,382,475) (1,282,905)
Property and equipment, net $ 849,293 $ 812,037
1Corporate systems projects in progress as of February 2, 2014 and February 3, 2013 includes approximately $40.1 million
and $39.7 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. 2, 2014 Feb. 3, 2013
Memphis-based distribution facilities obligation $ 3,753 $ 5,388
Capital leases 089
Total debt 3,753 5,477
Less current maturities (1,785) (1,724)
Total long-term debt $ 1,968 $ 3,753
Memphis-Based Distribution Facilities Obligation
As of February 2, 2014 and February 3, 2013, total debt of $3,753,000 and $5,388,000, 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 2, 2014 were as follows:
Dollars in thousands
Fiscal 2014 $ 1,785
Fiscal 2015 1,968
Total $ 3,753
Credit Facility
We have a credit facility that provides for a $300,000,000 unsecured revolving line of credit that may be used for
loans or letters of credit. Prior to December 22, 2016, we may, upon notice to the lenders, request an increase in
the credit facility of up to $200,000,000, to provide for a total of $500,000,000 of unsecured revolving credit. As
of February 2, 2014, we were in compliance with our financial covenants under the credit facility and, based on
current projections, we expect to remain in compliance throughout fiscal 2014. The credit facility matures on
June 22, 2017, at which time all outstanding borrowings must be repaid and all outstanding letters of credit must
be cash collateralized.
46