Pier 1 2007 Annual Report Download - page 52

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2001-1 Class A Certificates and did not bear interest. Since the securitization agreement expired in September
2006, there were no outstanding 2001-1 Class A Certificates or 2001-1 Class B Certificates at the end of fiscal
2007, as all amounts were settled.
Cash flows received by the Company from the Master Trust for each of the last three fiscal years are as
follows (in thousands):
2007 2006 2005
Proceeds from collections reinvested in revolving
securitizations ................................... $212,653 $436,034 $494,580
Servicing fees received ............................... $ 1,190 $ 2,189 $ 2,186
Cash flows received on retained interests ................. $ 32,592 $ 95,444 $109,172
As of February 25, 2006, the Company had $50,000,000, in beneficial interests (comprised primarily of
principal and interest related to the underlying Receivables) in the Master Trust.
NOTE 4 — PROPERTIES
Properties are summarized as follows at March 3, 2007 and February 25, 2006 (in thousands):
2007 2006
Land ...................................................... $ 18,315 $ 18,778
Buildings .................................................. 94,444 95,056
Equipment, furniture and fixtures ................................. 259,458 271,702
Leasehold improvements ....................................... 199,879 217,795
Computer software ........................................... 72,027 60,208
Projects in progress ........................................... 1,557 5,673
645,680 669,212
Less accumulated depreciation and amortization ...................... 406,132 370,290
Properties, net ............................................. $239,548 $298,922
NOTE 5 — GOODWILL AND OTHER INTANGIBLE ASSETS
The Company’s intangible assets at March 3, 2007 and February 25, 2006 included the right to do
business within certain geographical markets where franchise stores were previously granted exclusive rights
to operate and favorable operating leases acquired from a third party. These intangible assets were included in
other non-current assets in the Company’s consolidated balance sheets. Amortization expense for fiscal 2007,
2006 and 2005 was $1,431,000, $1,654,000 and $1,656,000, respectively. During fiscal 2007, the Company
wrote off $4,422,000 of goodwill and other intangibles of which $4,070,000 related to goodwill for Pier 1
50
Pier 1 Imports, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)