Petsmart 2000 Annual Report Download - page 57

Download and view the complete annual report

Please find page 57 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

sales. No additional rent payments were required during the three fiscal years ended 1999, 1998, and 1997. In
addition, certain leases provide for variable rent payments based on prevailing interest rates. Total rent expense
incurred under operating leases during fiscal 1999, 1998 and 1997 was $174,165,000, $161,565,000, and
$128,696,000, respectively.
The Company has entered into sale and leaseback transactions for several of its store locations which
included buildings and underlying land. Such assets are sold at cost and are leased back at terms similar to those
of other leased stores. The Company also leases certain fixtures and equipment under capital leases and has
entered into a capital lease transaction to finance the costs of certain hardware and software components and
custom program services related to the Company’ s new information systems.
F-17
PETSMART, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
At January 30, 2000, the future minimum annual rental commitments under all noncancelable leases were as
follows:
Operating Capital
Leases Leas es
(In thousands)
2000 $ 170,265 $ 19,961
2001 167,630 14,604
2002 147,476 14,027
2003 137,266 8,008
2004 132,676 6,499
Thereafter 1,089,414 56,977
Total minimum rental commitments $1,844,727 120,076
Less: amounts representing interest 43,532
Pres ent value of obligations 76,544
Less: current portion 12,593
Long-term obligations $ 63,951
The Company receives sublease rental income from MMI for the space in the Company’ s retail stores
occupied by veterinary services. Rentals are determined by fixed costs per square foot, adjusted for the number
of days the clinics are open and sales volumes achieved. Sublease income of approximately $7,361,000,
$4,800,000 and $3,500,000 was recognized during the fiscal years ended January 30, 2000, January 31, 1999,
and February 1, 1998, respectively. Additionally, rental income receivable from MMI totaled $3,762,000 at
January 30, 2000 and is included in receivables in the accompanying consolidated balance sheets.
NOTE 12 — COMMITMENTS AND CONTINGENCIES
9/16/2010 www.sec.gov/Archives/edgar/data/86…
sec.gov/…/0000950153-00-000575-d1.… 57/70