Petsmart 2002 Annual Report Download - page 41

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the revolving line of credit bear interest at the bank's prime rate plus 0% to 0.50% or LIBOR plus 2.00% to
2.50%, at our option.
Foreign Currency Risk
Our Canadian subsidiary operates 19 stores and uses the Canadian dollar as the functional currency and
the United States dollar as the reporting currency. We have certain exposures to foreign currency risk.
However, we believe that such exposure does not present a signiÑcant risk due to a relatively limited number
of transactions and accounts denominated in foreign currency. Approximately $62.7 million or 2.3% of our
revenues for 2002, were denominated in the Canadian dollar. Transaction gains and losses on United States
dollar denominated transactions are recorded within general and administrative expenses in the consolidated
statements of operations, and were $1.5 million in exchange loss for 2002.
Item 8. Financial Statements and Supplementary Data
The information required by this Item is attached as Appendix F.
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosures
Not applicable.
PART III
Item 10. Directors and Executive OÇcers of the Registrant
The information required by this item with respect to directors is incorporated by reference from the
information under the caption ""Election of Directors'' to be contained in our deÑnitive proxy statement in
connection with the solicitation of proxies for our Annual Meeting of Stockholders to be held on June 26,
2003.
The required information concerning our executive oÇcers is contained in Item 1, Part 1 of this Annual
Report on Form 10-K.
Item 11. Executive Compensation
The information required by this item is incorporated by reference from the information under the
captions ""Compensation of Executive OÇcers,'' ""Stock Option Grants, Exercises and Plans,'' and ""Employ-
ment and Severance Arrangements'' to be contained in our proxy statement.
Item 12. Security Ownership of Certain BeneÑcial Owners and Management and Related Stockholder
Matters
The information required by this item is incorporated by reference from the information under the
captions ""Security Ownership of Certain BeneÑcial Owners and Management'' and ""Equity Compensation
Plans'' to be contained in our proxy statement.
Item 13. Certain Relationships and Related Transactions
The information required by this item is incorporated by reference from the information under the
caption ""Certain Relationships and Related Transactions'' to be contained in our proxy statement.
Item 14. Controls and Procedures
We evaluated the design and operation of our disclosure controls and procedures to determine whether
they are eÅective in ensuring that we disclose the required information in a timely manner and in accordance
with the Securities Exchange Act of 1934, as amended, or the Exchange Act, and the rules and forms of the
Securities and Exchange Commission. Management, including our principal executive oÇcer and principal
29