Abercrombie & Fitch 2010 Annual Report Download - page 91

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Table of Contents
ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(c) The amount represents the change in fair value of derivative contracts due to changes in the difference between the spot price
and forward price that is excluded from the assessment of hedge effectiveness and, therefore, recognized in earnings. There were
no ineffective portions recorded in earnings for the fifty-two weeks ended January 29, 2011 and January 30, 2010.
16. DISCONTINUED OPERATIONS
On June 16, 2009, A&F's Board of Directors approved the closure of the Company's 29 RUEHL branded stores and related
direct-to-consumer operations. The Company completed the closure of the RUEHL branded stores and related direct-to-consumer
operations during the fourth quarter of Fiscal 2009. Accordingly, the results of operations of RUEHL are reflected in Loss from
Discontinued Operations, Net of Tax on the Consolidated Statements of Operations and Comprehensive Income for the fifty-two
weeks ended January 30, 2010 and January 31, 2009. Results from discontinued operations were immaterial for the fifty-two weeks
ended January 29, 2011.
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 29, 2011 related to the closure of 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 exists, 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.
The table below presents the significant components of RUEHL's results included in Loss from Discontinued Operations, net of
Tax on the Consolidated Statements of Operations and Comprehensive Income for the fiscal years ended January 30, 2010 and
January 31, 2009.
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