Abercrombie & Fitch 2010 Annual Report Download - page 81

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Table of Contents
ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
During Fiscal 2009, as a result of a strategic review of the RUEHL business, the Company determined that a triggering event
occurred. As a result of that assessment, the Company incurred non-cash, pre-tax impairment charges of $51.5 million, reported in
Loss from Discontinued Operations, Net of Tax on the Consolidated Statement of Operations and Comprehensive Income for the
fifty-two weeks ended January 30, 2010. There was no remaining fair value of RUEHL long-lived assets as of January 30, 2010.
Store-related assets are considered level 3 assets in the fair value hierarchy and the fair values were determined at the store level,
primarily using a discounted cash flow model. The estimation of future cash 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 $14.6 million and $19.3 million
on the Consolidated Balance Sheets at January 29, 2011 and January 30, 2010, respectively.
8. OTHER ASSETS
Other assets consisted of (in thousands):
2010 2009
Rabbi Trust $ 82,501 $ 71,245
Lease deposits 61,658 54,051
Store supplies 32,275 32,441
Restricted cash 26,322 10,163
Non-current deferred tax asset 16,764 1,516
Prepaid income tax on intercompany items 13,709 12,694
Other 31,288 28,260
Other assets $ 264,517 $ 210,370
Restricted cash includes various cash deposits with international banks that are used as collateralization for customary non-debt
banking commitments and deposits into trust accounts to conform with standard insurance security requirements. Store supplies
include, but are not limited to, hangers, frames, sign holders, security tags and back-room supplies. Other includes intangible
intellectual property, prepaid leases, and various other assets.
9. DEFERRED LEASE CREDITS
Deferred lease credits are derived from payments received from landlords to wholly or partially offset store construction costs
and are classified between current and long-term liabilities. The amounts, which are amortized over the respective lives of the related
leases, consisted of the following (in thousands):
January 29, January 30,
2011 2010
Deferred lease credits $ 544,223 $ 546,191
Amortized deferred lease credits (310,066) (290,542)
Total deferred lease credits, net $ 234,157 $ 255,649
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