Abercrombie & Fitch 2009 Annual Report Download - page 27

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included non-cash, store-related asset impairment charges of $0.23 and $0.06 for Fiscal 2009 and Fiscal 2008,
respectively.
Net loss from discontinued operations was $78.7 million in Fiscal 2009 and net loss per diluted share
from discontinued operations was $0.89 in Fiscal 2009, compared to net loss from discontinued operations of
$35.9 million and net loss per diluted share from discontinued operations of $0.40 in Fiscal 2008. Net loss
from discontinued operations included an after-tax charge of $34.2 million, or $0.39 per diluted share,
associated with the closure of the RUEHL business in Fiscal 2009, and after-tax charges of $31.4 million, or
$0.35 per diluted share, and $13.6 million, or $0.15 per diluted share, associated with the impairment of
Ruehl-related store assets for Fiscal 2009 and Fiscal 2008, respectively.
Net income was $0.3 million and net income per diluted share was $0.00 in Fiscal 2009, compared to net
income of $272.3 million and net income per diluted share of $3.05 in Fiscal 2008.
Excluding net loss from discontinued operations and non-cash impairment charges, the Company
reported non-GAAP net income per diluted share of $1.12 for Fiscal 2009 compared to non-GAAP net
income per diluted share of $3.51 for Fiscal 2008. The Company believes that this non-GAAP financial
measure is useful to investors as it provides the ability to measure the Company’s operating performance and
compare it against that of prior periods without reference to the Consolidated Statements of Operations and
Comprehensive Income, impact of Net Loss from Discontinued Operations and non-cash, store related asset
impairment charges. This non-GAAP financial measure should not be used as an alternative to net income per
diluted share as an indicator of the ongoing operating performance of the Company and is also not intended to
supersede or replace the Company’s GAAP financial measures. The table below reconciles the GAAP
financial measures to the non-GAAP financial measures discussed above.
January 30, 2010 January 31, 2009
Fifty-Two Weeks Ended
Net income per diluted share on a GAAP basis . . . . $0.00 $3.05
Plus: Net loss from discontinued operations(1) . . . $0.89 $0.40
Plus: Non-cash, store-related asset impairment
charges(2) ............................ $0.23 $0.06
Net income per diluted share on a non-GAAP
basis .................................. $1.12 $3.51
(1) Net loss from discontinued operations for the fiscal year includes the operating results, exit charges and
non-cash impairment charges associated with RUEHL branded stores and related direct-to-consumer
operations, as summarized in Note 14, “Discontinued Operations” of the Consolidated Financial
Statements.
(2) The non-cash, store-related asset impairment charges relate to stores whose asset carrying value exceeded
the fair value. For Fiscal 2009 the charge was associated with 34 Abercrombie & Fitch, 46 abercrombie
kids and 19 Hollister stores. For Fiscal 2008 the charge was associated with 11 Abercrombie & Fitch, six
abercrombie kids and three Hollister stores.
Net cash provided by operating activities, the Company’s primary source of liquidity, was $402.2 million
for Fiscal 2009. This source of cash was primarily driven by results from operations adjusted for non-cash
items including depreciation and amortization and impairment charges. The Company used $175.5 million of
cash for capital expenditures and had proceeds from the sale of marketable securities of $77.5 million during
Fiscal 2009. During Fiscal 2009, the Company repaid U.S. dollar denominated borrowings of $100.0 million
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