Petsmart 2002 Annual Report Download - page 19

any work stoppages. We consider our relationship with our associates to be good. Increases in the federal
minimum wage in recent years have not had a material eÅect on our business.
Financial Information by Business Segment and Geographic Data
As of February 3, 2002, we had three operating segments: PETsMART North America, which included
all retail stores, PETsMART Direct, which included our equine catalog and equine Internet operations; and
PETsMART.com, which included our pet catalog and pet Internet operations. As a result of the reorganiza-
tion of the PETsMART Direct and PETsMART.com operations and the results of operations of these
operating segments during 2002, we have evaluated our segment reporting requirements under Statement of
Financial Accounting Standards, or SFAS, No. 131, ""Disclosures about Segments of an Enterprise and
Related Information,'' and determined that the PETsMART Direct and PETsMART.com operating
segments do not meet the quantitative thresholds for disclosure as reportable operating segments. No one
region or country other than the United States accounted for 10% or more of revenues in 2002.
Net sales in the United States were approximately $2,632.5 million, $2,438.2 million, and $2,161.6 mil-
lion for 2002, 2001, and 2000. Net sales in Canada were approximately $62.7 million, $62.8 million, and
$62.6 million for 2002, 2001, and 2000. The information for long-lived assets and deferred tax assets is
incorporated by reference to the Notes to the Consolidated Financial Statements attached as Exhibit F.
Available Information
We make available free of charge or through our Internet website (www.petsmart.com) our annual report
on Form 10-K, our quarterly reports on Form 10-Q, our current reports on Form 8-K, and amendments to
those reports, as soon as reasonably practicable after we electronically Ñle such material, or furnish it to the
Securities and Exchange Commission.
Business Risks
In the normal course of business, our Ñnancial position is routinely subjected to a variety of risks,
including market risks associated with store expansion, investments in information systems, international
expansion, vendor reliability, competitive forces, and government regulatory actions. You should carefully
consider the risks and uncertainties described below in connection with those also discussed in Our Stores,
Distribution, Information Systems, Competition, and Government Regulation sections of this Annual Report
on Form 10-K. Our actual results could diÅer materially from projected results due to some or all of the
factors discussed below.
If we are unable to successfully implement our strategy of reformatting existing stores and opening new
stores our results of operations would be harmed.
Our continued growth depends to a degree on our ability to increase sales at our reformatted stores. We
currently expect to complete the stores targeted for the reformatting program by the end of 2003. There can be
no assurance that our reformatted stores will meet forecasted levels of sales and proÑtability. If we are unable
to operate our reformatted stores proÑtably our results of operations would be harmed.
In addition, we expect to open approximately 60 stores, net of store closures, in 2003. Our ability to open
additional stores is dependent on various factors including:
‚ identifying store sites that oÅer attractive returns on our investment;
‚ competition for those sites;
‚ successfully negotiating with landlords;
‚ timely construction of such stores; and
‚ our ability to attract and retain qualiÑed store personnel.
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