Abercrombie & Fitch 2008 Annual Report Download - page 8

Table of Contents
2008, the highest level of inventory, approximately $504.9 million at cost, was reached at the end of
October 2008 in anticipation of the Holiday selling season beginning in November. The lowest level of
inventory, approximately $352.2 million at cost, was reached at the end of December 2008.
Trademarks.
The Abercrombie & Fitch®, abercrombie®, Hollister Co.® and Ruehl No. 925® trademarks have
been registered with the U.S. Patent and Trademark Office and the registries of countries where stores are
located or likely to be located in the future. An application for the Gilly Hicks trademark has been filed
with the U.S. Patent and Trademark Office and the registries of countries where stores are located or
likely to be located in the future. An application for the Gilly Hicks Sydney® trademark has been
approved for registration by the U.S. Patent and Trademark Office and the registries of countries where
stores are located or may be located in the future. These trademarks are either registered or have
applications pending with the registries of many of the foreign countries in which the manufacturers of the
Company’s products are located. The Company has also registered or has applied to register certain other
trademarks in the U.S. and around the world. The Company believes that its products are identified by its
trademarks and, therefore, its trademarks are of significant value. Each registered trademark has a duration
of ten to 20 years, depending on the date it was registered and the country in which it is registered, and is
subject to an infinite number of renewals for a like period upon continued use and appropriate application.
The Company intends to continue using its core trademarks and to renew each of its registered trademarks
that remain in use.
Financial Information about Segments.
In accordance with Statement of Financial Accounting Standards (“SFAS”) No. 131, “Disclosures
about Segments of an Enterprise and Related Information,” (“SFAS No. 131”), the Company determines
its operating segments on the same basis that it uses to evaluate performance internally. The operating
segments identified by the Company are Abercrombie & Fitch, abercrombie, Hollister, RUEHL and Gilly
Hicks. The operating segments have been aggregated and are reported as one reportable financial
segment. RUEHL and Gilly Hicks were determined to be immaterial for segment reporting purposes, and
are therefore included in the one reportable segment as they have similar economic characteristics and
meet the majority of the aggregation criteria in paragraph 17 of SFAS No. 131. The Company aggregates
its operating segments because they have similar economic characteristics and meet the aggregation
criteria set forth in paragraph 17 of SFAS No. 131. The Company believes its operating segments may be
aggregated for financial reporting purposes because they are similar in each of the following areas: class
of consumer, economic characteristics, nature of products, nature of production processes and distribution
methods. Revenues relating to the Company’s international operations for the fifty-two weeks ended
January 31, 2009 and February 2, 2008 and long-lived assets relating to the Company’s international
operations as of January 31, 2009 and February 2, 2008 were not material and were not reported
separately from domestic revenues and long-lived assets.
Other Information.
Additional information about the Company’s business, including its revenues and profits for the last
three fiscal years and gross square footage of stores, is set forth under “ITEM 7. MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS”
of this Annual Report on Form 10-K.
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Source: ABERCROMBIE & FITCH CO /DE/, 10-K, March 27, 2009 Powered by Morningstar® Document Research℠