Abercrombie & Fitch 2008 Annual Report Download - page 71

Download and view the complete annual report

Please find page 71 of the 2008 Abercrombie & Fitch annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

Table of Contents
ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
5. CASH AND EQUIVALENTS AND INVESTMENTS
Cash and equivalents and investments consisted of (in thousands):
January 31, 2009 February 2, 2008
Cash and equivalents:
Cash $ 137,383 $ 74,753
Money market funds 384,739 43,291
Total cash and equivalents 522,122 118,044
Marketable Securities:
Available-for-sale securities:
Auction rate securities — student loan backed 139,239 258,355
Auction rate securities — municipal authority bonds 27,294 272,131
Total available-for-sale securities 166,533 530,486
Trading securities:
Auction rate securities — UBS — student loan
backed 50,589 —
Auction rate securities — UBS — municipal
authority bonds 11,959 —
Total trading securities 62,548 —
Total marketable securities 229,081 530,486
Rabbi Trust assets:(1)
Money market funds 473 1,350
Municipal notes and bonds 18,804 18,599
Trust-owned life insurance policies (at cash surrender
value) 32,549 31,306
Total Rabbi Trust assets 51,826 51,255
Total cash and equivalents and investments $ 803,029 $ 699,785
(1) Rabbi Trust assets are included in Other Assets on the Consolidated Balance Sheets.
Investments with original maturities greater than 90 days are accounted for in accordance with
SFAS No. 115, “Accounting for Certain Investments in Debt and Equity Securities” (“SFAS No. 115”).
At January 31, 2009 and February 2, 2008, the Company’s marketable securities consisted of investment
grade auction rate securities (“ARS”) invested in insured student loan backed securities and insured
municipal authority bonds, with maturities ranging from 10 to 34 years.
Despite the underlying long-term maturity of the ARS, such securities had historically been priced
and subsequently traded as short-term investments because of an interest-rate reset feature, which reset
through a Dutch auction process at predetermined periods ranging from seven to 35 days. Due to the
frequent nature of the reset feature, ARS were classified as current assets and reported at par, which
approximated fair value, as of February 2, 2008.
67
Source: ABERCROMBIE & FITCH CO /DE/, 10-K, March 27, 2009 Powered by Morningstar® Document Research℠