Abercrombie & Fitch 2009 Annual Report Download - page 38

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The unsecured Amended Credit Agreement is more fully described in Note 12, “Long-Term Debt” of the
Notes to Consolidated Financial Statements.
Trade letters of credit totaling approximately $35.9 million and $21.1 million were outstanding on
January 30, 2010 and January 31, 2009, respectively. Stand-by letters of credit totaling approximately
$14.1 million and $16.9 million were outstanding on January 30, 2010 and January 31, 2009, respectively.
The stand-by letters of credit are set to expire primarily during the fourth quarter of Fiscal 2010. To date, no
beneficiary has drawn upon the stand-by letters of credit.
OFF-BALANCE SHEET ARRANGEMENTS
The Company does not have any off-balance sheet arrangements or debt obligations.
CONTRACTUAL OBLIGATIONS
As of January 30, 2010, the Company’s contractual obligations were as follows:
Contractual Obligations Total Less than 1 year 1-3 years 3-5 years More than 5 years
Payments Due by Period (Thousands)
Operating Lease Obligations . . . . . . . . . . $2,598,875 $324,280 $606,269 $521,739 $1,146,587
Purchase Obligations . . . . . . . . . . . . . . . 79,767 79,767 — — —
Other Obligations . . . . . . . . . . . . . . . . . 119,540 85,292 15,257 3,748 15,243
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . $2,798,182 $489,339 $621,526 $525,487 $1,161,830
Operating lease obligations consist primarily of future minimum lease commitments related to store
operating leases. See Note 8, “Leased Facilities and Commitments” of the Notes to Consolidated Financial
Statements, for further discussion. Operating lease obligations do not include common area maintenance
(“CAM”), insurance, marketing or tax payments for which the Company is also obligated. Total expense
related to CAM, insurance, marketing and taxes was $156.6 million in Fiscal 2009. The purchase obligations
category represents purchase orders for merchandise to be delivered during Spring 2010 and commitments for
fabric expected to be used during upcoming seasons. Other obligations are primarily letters of credit
outstanding as of January 30, 2010, lease termination costs related to the closure of RUEHL branded stores,
construction debt, capital leases, asset retirement obligations, and information technology contracts for Fiscal
2010. See Note 12, “Long-Term Debt”, of the Notes to Consolidated Financial Statements, for further
discussion on the letters of credit.
The obligations in the table above do not include the payment of principal with respect to the outstanding
long-term debt of $50.9 million under the Company’s unsecured Amended Credit Agreement as the Company
is unable to estimate the timing of the payment. Also, the table does not include payments of interest under the
terms of the unsecured Amended Credit Agreement as the Company is unable to determine the amount of
these payments due to the variable interest rate and timing of the principal payment. The interest rate at
January 30, 2010 was 2.6%. The payment of the $50.9 million in principal outstanding and the related interest
would not extend beyond April 12, 2013, the expiration date of the unsecured Amended Credit Agreement.
Unrecognized tax benefits at January 30, 2010 of $29.4 million are also excluded. Additionally, the table
above does not include estimated future retirement payments under the Chief Executive Officer Supplemental
Executive Retirement Plan (the “SERP”) for the Company’s Chief Executive Officer with a present value of
$10.5 million at January 30, 2010. See Note 15, “Retirement Benefits”, of the Notes to Consolidated Financial
Statements and the description of the SERP in the text under the caption “EXECUTIVE OFFICER
COMPENSATION” in A&F’s definitive Proxy Statement for the Annual Meeting of Stockholders to be
37