Petsmart 2010 Annual Report Download - page 40

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open 45 to 50 net new stores and 8 to 10 new PetsHotels, continuing our investment in the development of our
information systems, adding to our services capacity with the expansion of certain grooming salons, remodeling or
replacing certain store assets and continuing our store refresh program.
Our ability to fund our operations and make planned capital expenditures depends on our future operating
performance and cash flow, which are subject to prevailing economic conditions and to financial, business and other
factors, some of which are beyond our control.
The following table presents our capital expenditures for each of the past three years (in thousands):
January 30,
2011
January 31,
2010
February 1,
2009
Year Ended
Capital Expenditures:
New stores ...................................... $ 38,715 $ 28,470 $ 83,124
Store-related projects(1) ............................ 49,989 48,051 51,908
PetsHotel(2) ..................................... 9,980 6,510 43,098
Information technology ............................. 20,222 20,297 27,464
Supply chain .................................... 5,484 8,851 20,480
Other(3) ........................................ 684 741 12,114
Total capital expenditures ......................... $125,074 $112,920 $238,188
(1) Includes store remodels, grooming salon expansions, equipment replacements, relocations, and various
merchandising projects.
(2) For new and existing stores.
(3) Includes corporate office related expenses, including costs related to the expansion and renovation of our
corporate offices during 2008.
Lease and Other Commitments
Operating and Capital Lease Commitments and Other Obligations
The following table summarizes our contractual obligations, net of estimated sublease income, and includes
obligations for executed agreements for which we do not yet have the right to control the use of the property at
January 30, 2011, and the effect that such obligations are expected to have on our liquidity and cash flows in future
periods (in thousands):
Contractual Obligation 2011
2012 &
2013
2014 &
2015
2016 and
Beyond Other Total
Operating lease obligations(1) .... $307,177 $580,861 $466,353 $542,175 $ — $1,896,566
Capital lease obligations(1)(2) .... 99,888 218,477 203,087 337,847 — 859,299
Purchase obligations(3) ......... 58,666 41,000 25,000 — — 124,666
Uncertain tax positions(4) ....... — — — — 16,735 16,735
Insurance obligations(5) ........ 30,118 — — — 69,811 99,929
Total ...................... $495,849 $840,338 $694,440 $880,022 $86,546 $2,997,195
Less: Sublease income ......... 4,196 6,220 5,466 3,077 — 18,959
Net Total ................... $491,653 $834,118 $688,974 $876,945 $86,546 $2,978,236
(1) In addition to the commitments scheduled above, we have executed operating and capital lease agreements with
total minimum lease payments of $82.1 million. The typical lease term for these agreements is 10 years. We do
not have the right to control the use of the property under these leases as of January 30, 2011 because we have
not taken physical possession of the property.
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