Abercrombie & Fitch 2008 Annual Report Download - page 76

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Table of Contents
ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
7. PROPERTY AND EQUIPMENT
Property and equipment, at cost, consisted of (thousands):
2008 2007
Land $ 32,302 $ 32,302
Building 235,738 193,344
Furniture, fixtures and equipment 628,195 540,114
Information technology 138,096 81,110
Leasehold improvements 1,143,656 977,947
Construction in progress 114,280 177,887
Other 47,017 51,571
Total $ 2,339,284 $ 2,054,275
Less: Accumulated depreciation and amortization 940,629 735,984
Property and equipment, net $ 1,398,655 $ 1,318,291
8. DEFERRED LEASE CREDITS, NET
Deferred lease credits are derived from payments received from landlords to partially offset store
construction costs and are reclassified between current and long-term liabilities. The amounts, which are
amortized over the life of the related leases, consisted of the following (thousands):
2008 2007
Deferred lease credits $ 514,041 $ 471,498
Amortized deferred lease credits (259,705) (219,834)
Total deferred lease credits, net $ 254,336 $ 251,664
9. LEASED FACILITIES AND COMMITMENTS
Annual store rent is comprised of a fixed minimum amount, plus contingent rent based on a
percentage of sales. Store lease terms generally require additional payments covering taxes, common area
costs and certain other expenses.
72
Source: ABERCROMBIE & FITCH CO /DE/, 10-K, March 27, 2009 Powered by Morningstar® Document Research℠