Abercrombie & Fitch 2009 Annual Report Download - page 72

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flows from operating activities requires significant estimates of factors that include future sales, gross margin
performance and operating expenses. In instances where the discounted cash flow analysis indicated a
negative value at the store level, the market exit price based on historical experience was used to determine the
fair value by asset type. The Company had store related assets measured at fair value of $19.3 million on the
Consolidated Balance Sheet at January 30, 2010.
7. 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):
2009 2008
Deferred lease credits .................................... $546,191 $ 514,041
Amortization of deferred lease credits ........................ (290,542) (259,705)
Total deferred lease credits, net ............................ $255,649 $ 254,336
8. 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.
A summary of rent expense follows (thousands):
2009 2008 2007
Store rent:
Fixed minimum .............................. $301,138 $267,108 $221,651
Contingent.................................. 6,136 14,289 21,453
Total store rent ................................ 307,274 281,397 243,104
Buildings, equipment and other .................... 5,071 5,905 6,066
Total rent expense .............................. $312,345 $287,302 $249,170
At January 30, 2010, the Company was committed to non-cancelable leases with remaining terms of one
to 19 years. A summary of operating lease commitments under non-cancelable leases follows (thousands):
Fiscal 2010 ..................................................... $ 324,280
Fiscal 2011 ..................................................... $ 315,696
Fiscal 2012 ..................................................... $ 290,573
Fiscal 2013 ..................................................... $ 270,335
Fiscal 2014 ..................................................... $ 251,404
Thereafter ...................................................... $1,146,587
71
ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)