Petsmart 2000 Annual Report Download - page 22

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result of favorable settlements of real estate leases on stores identified for closure in conjunction with the fiscal
1997 restructuring charge.
The $10.4 million balance remaining in the accrued merger, business integration and restructuring costs
liability account as of January 30, 2000 consists of store lease termination costs of $5.6 million, equipment lease
termination costs of $2.5 million, and other real estate and store closure costs of $2.3 million. Lease termination
and real estate costs paid during fiscal 1999 were approximately $9.4 million.
19
Results of Operations
The following table sets forth the percentage relationship to net sales, unless otherwise indicated, of certain
items included in the Company’ s statements of operations:
Fis cal Year Ended
Jan. 30, Jan. 31, Feb. 1,
2000 1999 1998(a)
Statement of Operations Data:
Net s ales 100.0% 100.0% 100.0%
Cos t of sales 72.9 75.0 75.3
Gros s profit 27.1 25.0 24.7
Store operating expenses 19.7 19.0 19.3
Store preopening expenses 0.3 0.4 0.5
General and administrative expenses 3.0 2.9 2.8
Loss on disposal of subsidiary 2.2 — —
Merger, business integration and restructuring costs
(benefits) — (0.1) 3.2
Operating income (loss) 1.9 2.8 (1.1)
Interest income 0.1 0.1 0.0
Interest expens e (1.0) (1.1) (0.8)
Income (loss) before equity loss in PETsMART.com,
income tax expenses (benefit) and cumulative effect of a
change in accounting principle 1.1 1.8 (1.9)
Equity loss in PETsMART.com (1.4) — —
Income (loss) before income tax expense (benefit) and
cumulative effect of a change in accounting principle (0.3) 1.8 (1.9)
Income tax expense (benefit) 1.2 0.8 (1.0)
Income (loss) before cumulative effect of a change in
accounting principle (1.5) 1.0 (0.9)
Cumulative effect of a change in accounting principle, net
of tax
benefit — — (0.1)
Net income (loss) (1.5)% 1.0% (1.0)%
9/16/2010 www.sec.gov/Archives/edgar/data/86…
sec.gov/…/0000950153-00-000575-d1.… 22/70