Abercrombie & Fitch 2009 Annual Report Download - page 53

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ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
Abercrombie & Fitch Co. (“A&F”), through its wholly-owned subsidiaries (collectively, A&F and its
wholly-owned subsidiaries are referred to as “Abercrombie & Fitch” or the “Company”), is a specialty retailer
of high-quality, casual apparel for men, women and kids with an active, youthful lifestyle.
The accompanying consolidated financial statements include the historical financial statements of, and
transactions applicable to, the Company and reflect its assets, liabilities, results of operations and cash flows.
On June 16, 2009, A&F’s Board of Directors approved the closure of the Company’s 29 RUEHL branded
stores and related direct-to-consumer operations. The determination to take this action was based on a
comprehensive review and evaluation of the performance of the RUEHL branded stores and related
direct-to-consumer operations, as well as the related real estate portfolio. The Company completed the
closure of the RUEHL branded stores and related direct-to-consumer operations during the fourth quarter of
Fiscal 2009. Accordingly, the results of operations of RUEHL are reflected in Net Loss from Discontinued
Operations for all periods presented on the Consolidated Statements of Operations and Comprehensive
Income.
FISCAL YEAR
The Company’s fiscal year ends on the Saturday closest to January 31, typically resulting in a fifty-two
week year, but occasionally giving rise to an additional week, resulting in a fifty-three week year. Fiscal years
are designated in the consolidated financial statements and notes by the calendar year in which the fiscal year
commences. All references herein to “Fiscal 2009” represent the results of the 52-week fiscal year ended
January 30, 2010; to “Fiscal 2008” represent the results of the 52-week fiscal year ended January 31, 2009;
and to “Fiscal 2007” represent the results of the 52-week fiscal year ended February 2, 2008. In addition, all
references herein to “Fiscal 2010” represent the 52-week fiscal year that will end on January 29, 2011.
RECLASSIFICATIONS
Certain prior period amounts have been reclassified to conform to the current year presentation.
SEGMENT REPORTING
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 kids,
Hollister and Gilly Hicks. The operating segments have been aggregated and are reported as one reportable
segment because they have similar economic characteristics and meet the required aggregation criteria. 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.
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