Abercrombie & Fitch 2009 Annual Report Download - page 82

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Costs associated with exit or disposal activities are recorded when the liability is incurred. Below is a roll
forward of the liabilities recognized on the Consolidated Balance Sheet as of January 30, 2010 related to the
closure of the RUEHL branded stores and related direct-to-consumer operations (in thousands):
Fifty-Two Weeks Ended
January 30, 2010
Beginning Balance ........................................ $ —
Cash Charges ............................................ 68,363
Interest Accretion ......................................... 358
Cash Payments ........................................... (22,635)
Ending Balance(1) ........................................ $46,086
(1) Ending balance primarily reflects the net present value of obligations due under signed lease termination
agreements and obligations due under a lease, for which no agreement exists, less estimated sublease
income. As of January 30, 2010, there were $29.6 million of lease termination charges and $0.1 million of
severance charges recorded as a current liability in Accrued Expenses and $16.4 million of lease
termination charges recorded as a long-term liability in Other Liabilities on the Consolidated Balance
Sheet.
Below is a summary of charges related to the closure of the RUEHL branded stores and related
direct-to-consumer operations (in thousands):
Fifty-Two Weeks Ended
January 30, 2010
Asset Impairments(1) ...................................... $ 51,536
Lease Terminations, net(2) ................................. 53,916
Severance and Other(3) ................................... 2,189
Total Charges ........................................ $107,641
(1) Asset impairment charges primarily related to store furniture, fixtures and leasehold improvements.
(2) Lease terminations reflect the net present value of obligations due under signed lease termination
agreements and obligations due under a lease, for which no agreement exists, less estimated sublease
income. The charges are presented net of the reversal of non-cash credits.
(3) Severance and other reflects charges primarily related to severance and merchandise and store supply
inventory.
81
ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)