Abercrombie & Fitch 2008 Annual Report Download - page 41

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Table of Contents
related excess tax benefits. The Board of Directors will review the Company’s cash position and results of
operations and address the appropriateness of future dividend amounts.
During Fiscal 2008, A&F repurchased approximately 0.7 million shares of A&F’s Common Stock
with a value of approximately $50.0 million. During Fiscal 2007, A&F repurchased approximately
3.6 million shares of A&F’s Common Stock with a value of approximately $287.9 million. A&F did not
repurchase any shares of A&F’s Common Stock during Fiscal 2006. Both the Fiscal 2008 and Fiscal 2007
repurchases were pursuant to A&F Board of Directors’ authorizations.
As of January 31, 2009, A&F had approximately 11.3 million shares available for repurchase as part
of the August 15, 2005 and November 20, 2007 A&F Board of Directors’ authorizations to repurchase
6.0 million shares and 10.0 million shares, respectively, of A&F’s Common Stock.
The Company had $100.0 million outstanding under its unsecured credit agreement on January 31,
2009 and no borrowings outstanding under the credit agreement then in effect on February 2, 2008. The
average interest rate for the fifty-two weeks ended January 31, 2009 was 3.1%. As of January 31, 2009,
the Company had an additional $350 million available (less outstanding letters of credit) under its
unsecured credit agreement. The unsecured credit agreement requires that the Leverage Ratio (as defined
in the unsecured credit agreement) not be greater than 3.75 to 1.00 at any time. The Company’s Leverage
Ratio was 2.13 as of January 31, 2009. The unsecured credit agreement also requires that the Coverage
Ratio (as defined in the unsecured credit agreement) for A&F and its subsidiaries on a consolidated basis
of (i) consolidated earnings before interest, taxes, depreciation, amortization and rent (“Consolidated
EBITDAR”) for the trailing four-consecutive-fiscal-quarter period to (ii) the sum of, without duplication,
(x) net interest expense for such period, (y) scheduled payments of long-term debt due within twelve
months of the date of determination, and (z) the sum of minimum rent and contingent store rent, not be
less than 2.00 to 1.00 at any time. The Company’s Coverage Ratio was 3.49 as of January 31, 2009. The
unsecured credit agreement is more fully described in Note 13, “Debt” of the Consolidated Financial
Statements in “ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA” of this Annual
Report on Form 10-K.
Trade letters of credit totaling approximately $21.1 million and $61.6 million were outstanding on
January 31, 2009 and February 2, 2008, respectively. Standby letters of credit totaling approximately
$16.9 million and $14.5 million were outstanding on January 31, 2009 and February 2, 2008, respectively.
The standby letters of credit are set to expire primarily during the fourth quarter of Fiscal 2009. To date,
no beneficiary has drawn upon the standby letters of credit.
OFF-BALANCE SHEET ARRANGEMENTS
The Company does not have any off-balance sheet arrangements or debt obligations.
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Source: ABERCROMBIE & FITCH CO /DE/, 10-K, March 27, 2009 Powered by Morningstar® Document Research℠