Pier 1 2013 Annual Report Download - page 49

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
NOTE 2 – PROPERTIES
Properties are summarized as follows at March 2, 2013 and February 25, 2012 (in thousands):
2013 2012
Land $ 4,256 $ 4,256
Buildings 12,394 12,396
Equipment, furniture, fixtures and other 306,094 277,247
Leasehold improvements 192,562 176,069
Computer software 112,755 87,821
Projects in progress 5,621 7,241
633,682 565,030
Less accumulated depreciation and amortization 483,067 461,390
Properties, net $ 150,615 $ 103,640
NOTE 3 – OTHER ACCRUED LIABILITIES AND NONCURRENT LIABILITIES
The following is a summary of other accrued liabilities and noncurrent liabilities at March 2, 2013 and
February 25, 2012 (in thousands):
2013 2012
Accrued payroll and other employee-related liabilities $ 60,867 $ 65,758
Accrued taxes, other than income 22,608 19,965
Rent-related liabilities 9,973 10,064
Other 18,989 15,892
Other accrued liabilities $ 112,437 $ 111,679
Rent-related liabilities $ 18,057 $ 19,090
Deferred gains 4,788 7,574
Retirement benefits 37,502 31,754
Other 2,110 16,414
Other noncurrent liabilities $ 62,457 $ 74,832
NOTE 4 – LONG-TERM DEBT AND AVAILABLE CREDIT
Long-term debt consisted entirely of industrial revenue bonds at March 2, 2013 and February 25, 2012.
The Company’s industrial revenue bond loan agreements have been outstanding since fiscal 1987. Proceeds were
used to construct warehouse/distribution facilities. The loan agreements and related tax-exempt bonds mature in
the year 2026. During fiscal 2011, the Company repaid $9,500,000 of industrial revenue bonds related to the
distribution center near Chicago, Illinois with proceeds received from the sale of that facility earlier in the year.
The Company’s interest rates on the loans are based on the bond interest rates, which are market driven, reset
weekly and are similar to other tax-exempt municipal debt issues. The Company’s weighted average effective
interest rate, including standby letter of credit fees, was 2.4%, 2.7% and 3.8% for fiscal 2013, 2012 and 2011,
respectively.
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