Petsmart 2006 Annual Report Download - page 83

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plan purchases generally vest over a six-month period and have no expiration. The following assumptions were used
to value purchases:
2006 2005 2004
Fiscal Year
Dividend yield ..................................... 0.48% 0.47% 0.40%
Expected volatility .................................. 29.3% 29.7% 60.5%
Risk-free interest rate ................................ 5.15% 3.94% 2.01%
Expected lives ..................................... 0.5years 0.5 years 0.5 years
Restricted stock, which was issued at the fair market value on the date of the grant and cliff vests after four
years, is being amortized ratably by a charge to income over the four-year term of the restricted stock awards.
Note 15 — Supplemental Schedule of Cash Flows
Supplemental cash flow information for fiscal 2006, 2005 and 2004 was as follows (in thousands):
2006 2005 2004
Fiscal Year
Interest paid........................................ $ 37,913 $ 28,804 $20,044
Income taxes paid, net of refunds ........................ $125,468 $ 92,390 $87,468
Assets acquired using capital lease obligations .............. $ 98,628 $114,350 $85,912
Assets acquired using other current liabilities ............... $ 3,437 $ 17,204 $ —
Dividends declared but unpaid .......................... $ 4,064 $ 4,170 $ 4,363
Note 16 — Selected Quarterly Financial Data (Unaudited)
Summarized quarterly financial information for fiscal 2006 and 2005 is as follows:
Fiscal Year Ended January 28, 2007
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
(In thousands, except per share data)
Net sales .......................... $1,011,529 $1,020,609 $1,034,810 $1,166,909
Gross profit ........................ $ 310,080 $ 304,847 $ 308,609 $ 384,234
Operating income .................... $ 74,679 $ 61,980 $ 56,462 $ 128,713
Income before income tax expense ....... $ 67,946 $ 52,660 $ 49,543 $ 119,968
Net income ........................ $ 41,764 $ 34,630 $ 31,728 $ 76,947
Basic earning per common share ........ $ 0.30 $ 0.25 $ 0.23 $ 0.58
Diluted earning per common share ....... $ 0.30 $ 0.25 $ 0.23 $ 0.56
Dividends declared per common share .... $ 0.03 $ 0.03 $ 0.03 $ 0.03
Weighted average shares outstanding:
Basic ........................... 137,449 137,667 135,041 133,188
Diluted.......................... 141,088 141,237 138,714 136,928
F-27
PetSmart, Inc. and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)