Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Ellen Itskovitz – Lord Abbett
Ellen Itskovitz – Lord Abbett
When you’re doing a lot of your renovations, etc. you said that a lot of that went into your SG&A did some put some of it in PP&E? I’m curious how much of it is expensed versus capitalized.
Ron Freeman
Typically the personnel costs that you incur for additional training and for having additional staff on hand during a store opening will go to SG&A expense. What’s capitalized typically is going to be certainly the construction costs and the equipment that goes in there. Personnel and promotional costs go directly to SG&A.
Ellen Itskovitz – Lord Abbett
The SG&A was really just the personnel costs associated with it?
Ron Freeman
And the additional promotional expenses, everything that it takes to get a successful store opening.
Operator
Your next question comes from Bryan Hunt – Wachovia
Bryan Hunt – Wachovia
I was wondering if you could discuss your revolver maturities and your LC facility. I believe your LC facility matures at the end of this calendar and your revolvers mature in 2010 is that correct?
Ron Freeman
It’s a little bit off. The details on that are going to be in the 10-K that we file later today. Right now everything we have is committed through this time next year, through the end of 2009 and we have maturities coming up in late 2009 and 2010.
Bryan Hunt – Wachovia
Could you give us an idea of what your CapEx plan is for next year? You’ve given us an idea of what you’re going to spend and a chunk of that fell in 2008 but could you frame the dollars for us?
Ron Freeman
Fiscal 2008 we expect to be somewhere between $140 and $160 million.
Bryan Hunt – Wachovia
With that level of CapEx do you feel like you’ll be able to pay down your revolver balances by the end of next year?
Ron Freeman
Yes.
Bryan Hunt – Wachovia
When I look at your CapEx numbers the $140 to $160 million is there anything in there for distribution center expansion? I know you guys bought some land for that is there any planned CapEx on expanding the DC next year?
Ron Freeman
We don’t go into the details of our CapEx plans other than to talk about the number of store openings we anticipate having in the coming year.
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