Petsmart 2000 Annual Report Download - page 44

Download and view the complete annual report

Please find page 44 of the 2000 Petsmart 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 70

  • 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

(1) Sale of UK s ubsidiary:
Working capital, other than cas h $ 11,408
Property and equipment 45,076
Other ass ets 18,953
Net assets of subsidiary sold in excess of
proceeds (23,605)
Capital leas e obligations (7,552)
Dispos al transaction cos ts paid (4,040)
Deferred rents and other liabilities (2,463)
Net cash effect from sale of UK subsidiary $ 37,777
The accompanying notes are an integral part of these financial statements.
F-7
PETSMART, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 — THE COMPANY AND ITS SIGNIFICANT ACCOUNTING POLICIES
Business
PETsMART, Inc. and Subsidiaries (“the Company” or “PETsMART”) is a superstore retailer of pet food,
pet supplies, accessories and professional pet services throughout North America. The Company, through its
wholly- owned subsidiary, PETsMART Direct (“Direct”), is also a leading mail order catalog retailer of pet and
animal products, and equine and riding supplies. Additionally, Direct provides product sourcing and fulfillment
services for online sales made by PETsMART.com, Inc., a corporate joint venture formed with and operated by
an independent third party.
The C ompany consummated a sale of its United K ingdom (“UK ”) subsidiary to an unrelated third party on
December 15, 1999 (see N ote 4). As a result of this transaction, the results of operations, excluding the related
tax effects, for the UK subsidiary for fiscal year 1999 prior to the transaction date, along with the transaction loss
and related fees, are reflected in loss on disposal of subsidiary in the consolidated statement of operations.
Principles of Consolidation
The consolidated financial statements include the accounts of the Company and its wholly-owned
subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation.
Fiscal Year
The Company’ s fiscal year ends on the Sunday nearest January 31. Fiscal years 1999, 1998 and 1997 each
comprised 52 weeks.
Use of Estimates
9/16/2010 www.sec.gov/Archives/edgar/data/86…
sec.gov/…/0000950153-00-000575-d1.… 44/70