Petsmart 2000 Annual Report Download - page 51

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F-12
PETSMART, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
fiscal 1999, the Company consummated a transfer of assets of PETsMART Veterinary Services, Inc. (“PVS”), a
wholly- owned subsidiary of the Company, to MMI in exchange for an additional equity investment of 4,821,679
shares or $25,424,000 of non-voting preferred stock in MMI. Prior to the transfer of PVS to MMI in
July 1999, revenues related to PVS were approximately $27,289,000 in fiscal 1999, $53,904,000 in fiscal 1998
and $41,270,000 in fiscal 1997 and were recorded in net sales in the accompanying consolidated statements of
operations. Rental income charged to MMI is recorded by the Company as income from leased departments
(see Note 11).
NOTE 3 — PROPERTY AND EQUIPMENT
Property and equipment consists of the following:
January 30, January 31,
2000 1999
(In thousands)
Property held for sale and leaseback $ 2,947 $ 9,395
Land 3,195 466
Buildings 16,445 7,678
Furniture, fixtures and equipment 106,389 104,544
Leasehold improvements 132,206 139,903
Computer s oftware 27,385 10,163
Equipment and computer software under capital leases 79,831 94,552
Buildings under capital leases 55,821 55,821
424,219 422,522
Less: accumulated depreciation and amortization 164,085 149,144
260,134 273,378
Construction in progress 3,193 6,349
$ 263,327 $ 279,727
Accumulated amortization of equipment, computer software and buildings under capital leases approximated
$63,215,000 and $56,389,000 at January 30, 2000 and January 31, 1999, respectively.
NOTE 4 — LOSS ON DISPOSAL OF SUBSIDIARY
The Company consummated the sale of its UK subsidiary (the “Transaction”) to an unrelated third party on
December 15, 1999. The Transaction was structured as a stock sale, whereby the Company sold 100% of the
stock in its subsidiary in exchange for cash of approximately $48,855,000 less debt of approximately
$7,038,000, resulting in net proceeds of approximately $41,817,000. Approximately $40,604,000 of the net
9/16/2010 www.sec.gov/Archives/edgar/data/86…
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