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Certain Relationships and Related Party Transactions
12 Months Ended
Jan. 31, 2021
Related Party Transactions [Abstract]  
Certain Relationships and Related Party Transactions Certain Relationships and Related Party Transactions
The Company’s consolidated financial statements include management fee expenses of $1.3 million allocated to the Company by the Parent for organizational oversight and certain limited corporate functions provided by its sponsors for Fiscal Year 2020, Fiscal Year 2019, and Fiscal Year 2018. Allocated costs are included within selling, general and administrative expenses in the consolidated statements of operations.

From time to time, prior to the completion of the IPO, the Company used funding from or provided funding to the Parent, as needed, in the normal course of business. The Company and PetSmart were parties to an intercompany loan agreement pursuant to which each party made loans from time to time to the other. In connection with the signing of an underwriting agreement pursuant to which the Company received substantially all of the net proceeds from the Company’s sale of shares of Class A common stock as part of the IPO, the loan agreement was terminated without cash repayment of the outstanding loan. The termination of the intercompany loan resulted in a $79.5 million reduction of the Company’s due from Parent balance during Fiscal Year 2019.

Since July 2, 2018, certain of the Company’s pharmacy operations have been and continue to be conducted through a wholly-owned subsidiary of PetSmart. The Company has entered into a services agreement with PetSmart that provides for the payment of a management fee due from PetSmart with respect to this arrangement. The Company recognized $40.1 million, $41.1 million and $12.9 million within net sales in the consolidated statement of operations for the services provided during Fiscal Year 2020, Fiscal Year 2019, and Fiscal Year 2018, respectively.

PetSmart Guarantees

PetSmart previously provided a guarantee of payment with respect to certain equipment and other leases that the Company entered into and served as a guarantor in respect of the Company’s obligations under a credit insurance policy in favor of certain of the Company’s suppliers. As of February 12, 2021, all such guarantees had been released, with the exception of guarantees pertaining to three of the Company’s lease agreements.