Petsmart 2000 Annual Report Download - page 62

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$ 8.500 – $ 9.938 2,249,524 7.56 $ 9.54 1,194,884 $ 9.54
$10.375 – $11.458 828,344 4.74 $ 10.98 828,344 $ 10.98
$11.458 – $12.000 1,867,968 6.29 $ 11.79 1,757,257 $ 11.78
$12.083 – $15.375 1,802,832 5.93 $ 14.48 1,706,731 $ 14.58
$16.594 – $24.250 1,036,670 6.94 $ 21.80 185,641 $ 19.99
$28.750 – $28.750 58,000 6.67 $ 28.75 58,000 $ 28.75
$ 0.131 – $28.750 15,785,844 7.58 $ 9.80 7,215,775 $ 11.16
NOTE 14 — SUPPLEM ENTAL SCHEDULE OF CASH FLOWS
Interest paid during fiscal year 1999, 1998, and 1997 amounted to approximately $22,929,000,
$23,757,000, and $11,020,000, respectively. Such amounts include interest paid on the bank credit facility,
capital leases and interest capitalized on construction in progress.
F-21
PETSMART, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Income taxes paid, net of refunds, during fiscal year 1999, 1998, and 1997 amounted to approximately
$12,648,000, $3,396,000 and $2,729,000, respectively.
During fiscal year 1999, 1998, and 1997, the Company incurred capital lease obligations of approximately
$1,795,000, $34,997,000, and $18,249,000, respectively, for new equipment and buildings.
During fiscal 1999, the Company consummated a transfer of assets of PVS to MMI in exchange for an
additional equity investment in MMI (Note 2). The assets of PVS included approximately $3,291,000 of
merchandise and supplies inventory, $5,730,000 of property and equipment, net, $13,858,000 of goodwill, net,
$673,000 of deferred income taxes, and $655,000 of accrued vacation liability.
NOTE 15 — SUBSEQUENT EVENTS
On April 13, 2000, the C ompany renewed its revolving credit agreement (see N ote 8). As a result, the
capacity of the revolving credit agreement increased from $60,000,000 to $70,000,000 for the revolver and
$40,000,000 for real estate commitments. The Company may also obtain additional financing or debt outside of
the revolving credit agreement up to $40,000,000. Borrowings under the arrangement bear interest, at the
Company’ s option, of either the bank’ s prime rate plus 0.25% to 0.50%, or LIBOR plus 1.75% to 2.25%. The
agreement expires on April 13, 2003. The agreement is secured by the inventory of the United States store
operations. The collateral is released if the Company can meet specific financial requirements for three
consecutive quarters. The restrictive covenants remain the same as the previous revolving credit agreement. The
new agreement also allows the Company $25,000,000 annually to be used for the repurchase of the Company’ s
common stock and/or subordinated debt.
NOTE 16 — FINANCIAL INFORMATION BY BUSINESS SEGMENT
As of the end of fiscal 1999, the Company operates two reportable business segments. PETsMART North
American operations, the largest segment, includes all retail stores in the United States and Canada, along with
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