Abercrombie & Fitch 2010 Annual Report Download - page 80

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Table of Contents
ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
7. PROPERTY AND EQUIPMENT, NET
Property and equipment, net, consisted of (in thousands):
January 29, January 30,
2011 2010
Land $ 36,885 $ 32,877
Building 223,520 223,532
Furniture, fixtures and equipment 602,885 593,984
Information technology 233,867 211,461
Leasehold improvements 1,247,493 1,205,276
Construction in progress 64,401 48,352
Other 47,006 47,010
Total $ 2,456,057 $ 2,362,492
Less: Accumulated depreciation and amortization (1,306,474) (1,118,473)
Property and equipment, net $ 1,149,583 $ 1,244,019
Long-lived assets, primarily comprised of property and equipment, are reviewed periodically for impairment or whenever events
or changes in circumstances indicate that full recoverability of net asset balances through future cash flows is in question. Factors used
in the evaluation include, but are not limited to, management's plans for future operations, recent operating results, and projected cash
flows.
In the second quarter of Fiscal 2010, as a result of a strategic review of under-performing stores, the Company determined that a
number of stores were likely to be closed prior to lease expiration, which caused a triggering event requiring the Company to evaluate
the related long-lived assets for impairment. Associated with these expected closures, the Company incurred a non-cash, pre-tax asset
impairment charge of $2.2 million, included in Stores and Distribution Expense on the Consolidated Statement of Operations and
Comprehensive Income for the fifty-two weeks ended January 29, 2011. The charge was associated with one Abercrombie & Fitch,
one abercrombie kids and three Hollister stores.
In the fourth quarter of Fiscal 2010, as a result of the fiscal year-end review of long-lived store-related assets, the Company
incurred store-related asset impairment charges of $48.4 million, included in Stores and Distribution Expense on the Consolidated
Statement of Operations and Comprehensive Income for the fifty-two weeks ended January 29, 2011. The asset impairment charge
was primarily related to 13 Gilly Hicks stores constructed using the original large format store of approximately 10,000 gross square
feet which has been revised to a smaller format of 5,000 gross square feet for new stores. The charge also included one
Abercrombie & Fitch, one Abercrombie kids and six Hollister stores.
In the fourth quarter of Fiscal 2009, as a part of the Company's year-end review for impairment of long-lived store-related assets,
the Company incurred a non-cash, pre-tax impairment charge of $33.2 million, reported in Stores and Distribution Expense on the
Consolidated Statement of Operations and Comprehensive Income for the fifty-two weeks ended January 30, 2010. The charge was
associated with 34 Abercrombie & Fitch stores, 46 abercrombie kids stores and 19 Hollister stores.
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