Petsmart 2014 Annual Report Download - page 55

Download and view the complete annual report

Please find page 55 of the 2014 Petsmart annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 117

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117

Table of Contents
The following table presents our purchases of our common stock under the respective share purchase programs (in
thousands):
Year Ended
Share Purchase Program February 2, 2014 February 3, 2013 January 29, 2012
(52 weeks) (53 weeks) (52 weeks)
Authorized
Amount
Date
Approved
by Board
Program
Termination
Date
Shares
Purchased
Purchase
Value
Shares
Purchased
Purchase
Value
Shares
Purchased
Purchase
Value
$ 400,000 June 2010
July 31,
2011 — $ — — $ — 3,909 $ 165,383
$ 450,000 June 2011
January 31,
2013 — — 4,594 278,553 3,683 171,447
$ 525,000 June 2012
January 31,
2014 5,025 346,942 2,599 178,058 — —
$ 535,000
September
2013
January 31,
2015 1,616 117,134 — — — —
6,641 $ 464,076 7,193 $ 456,611 7,592 $ 336,830
Common Stock Dividends
We believe our ability to generate cash allows us to invest in the growth of the business and, at the same time, distribute a
quarterly dividend. Our revolving credit facility and stand-alone letter of credit facility permit us to pay dividends, as long as
we are not in default and the payment of dividends would not result in default. During 2013, 2012, and 2011, we paid
aggregate dividends of $0.525, per share,$0.775 per share, and $0.53 per share, respectively. The decrease in dividends paid
during 2013 was the result of the dividend declared in the fourth quarter of 2012, which was paid in December of 2012, rather
than in February of 2013.
Operating Capital and Capital Expenditure Requirements
All our stores are leased facilities. We opened 60 new stores and closed 5 stores in 2013. Generally, each new store
requires capital expenditures of approximately $0.7 million for fixtures, equipment, and leasehold improvements,
approximately $0.3 million for inventory, and approximately $0.1 million for preopening costs. We expect total capital
spending to be $150 million to $160 million for 2014, based on our plan to continue our store growth, remodel or replace
certain store assets, enhance our supply chain, continue our investment in the development of our information systems, and
improve our infrastructure.
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.
Lease and Other Commitments
Operating and Capital Lease Commitments and Other Obligations
The following table summarizes our contractual obligations, net of estimated sublease income, at February 2, 2014, and
the effect that such obligations are expected to have on our liquidity and cash flows in future periods (in thousands):
Contractual Obligation 2014
2015 &
2016
2017 &
2018
2019 and
Beyond Other Total
Operating lease obligations (1) $ 325,830 $ 635,918 $ 475,116 $ 491,633 $ — $1,928,497
Capital lease obligations (1)(2) 115,340 227,670 178,403 204,548 — 725,961
Purchase obligations (3) 67,210 65,900 37,600 — — 170,710
Uncertain tax positions (4) ————17,82717,827
Page 5
of 11
7
PETM - 2014.02.02 - 10
K
8
/
21
/
201
5
http://www.sec.gov/Archives/edgar/data/863157/000086315714000040/pet
m
-20140202x1...