Petsmart 2002 Annual Report Download - page 65

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PETsMART, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Note 4 Ì Property and Equipment
Property and equipment consists of the following (in thousands):
February 2, February 3,
2003 2002
LandÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 691 $ 691
Buildings ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 8,776 8,965
Furniture, Ñxtures and equipmentÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 234,265 167,636
Leasehold improvements ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 230,978 174,000
Computer software ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 32,885 34,101
Buildings, equipment, and computer software under capital leasesÏÏÏÏÏÏÏ 218,012 255,256
725,607 640,649
Less: accumulated depreciation and amortizationÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 261,667 251,091
463,940 389,558
Construction in progressÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 26,007 5,277
$489,947 $394,835
Accumulated amortization of equipment, computer software and buildings under capital leases approxi-
mated $57,056,000 and $87,997,000 as of February 2, 2003 and February 3, 2002, respectively. In Ñscal 2001,
the Company entered into sale-leaseback transactions for one distribution center and 26 stores, resulting in the
addition to capital leases of $107,930,000.
Interest costs incurred and interest capitalized on construction in progress is as follows (in thousands):
Fiscal Year Ended
February 2, February 3, January 28,
2003 2002 2001
Interest costs incurred ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $20,836 $27,436 $23,443
Less: interest costs capitalizedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì 58
Interest expense ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $20,836 $27,436 $23,385
Note 5 Ì Notes Receivable from OÇcers
During Ñscal 2000, the Company provided loans to certain oÇcers to be used only for the purpose of
purchasing shares of the Company's common stock on the open market. These loans mature Ñve years after
issuance and accrue interest at 7.75% per annum, with principal and interest due at maturity. The oÇcers are
required to hold the common stock for a minimum of 12 to 18 months. The loans are collateralized by the
Company's common stock purchased by the oÇcers. The loans are full recourse and must be repaid in full,
including accrued interest, upon the earlier of the scheduled maturity date or an event of default, including
among others, sale of the underlying common stock or the oÇcer's termination of employment. As of
February 3, 2002, notes receivable and accrued interest due from oÇcers was $4,487,000. As of February 2,
2003, the notes had been repaid in full, and the Company will not make any new loans to its oÇcers under this
program in the future.
F-17