Abercrombie & Fitch 2010 Annual Report Download - page 51

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Table of Contents
Costs associated with exit or disposal activities are recorded when the liability is incurred. As of January 29, 2011, the Company
expected to make gross cash payments of approximately $11.8 million in Fiscal 2011, and an aggregate of $7.4 million in fiscal years
thereafter, related primarily to lease termination agreements associated with the closure of RUEHL branded stores.
Below is a roll forward of the present value of liabilities recognized on the Consolidated Balance Sheet as of January 29, 2011
related to the closure of the RUEHL branded stores and related direct-to-consumer operations (in millions):
Fifty-Two
Weeks Ended
January 29, 2011
Beginning Balance $ 46.1
Interest Accretion / Other, Net 0.2
Cash Payments (29.1)
Ending Balance(1) $ 17.2
(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 termination agreement existed at January 29, 2011, less estimated sublease income. As
of January 29, 2011, there were $11.8 million of lease termination charges recorded as a current liability in Accrued Expenses and
$5.4 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
Fiscal 2009. There were no material RUEHL related charges in Fiscal 2010.
Fifty-Two
Weeks Ended
January 30, 2010
(In thousands)
Asset Impairments(1) $ 51.5
Lease Terminations, net(2) 53.9
Severance and Other(3) 2.2
Total Charges $ 107.6
(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 any reversal of
non-cash credits.
(3) Severance and other reflects charges primarily related to severance, merchandise and store supply inventory.
48