Abercrombie & Fitch 2010 Annual Report Download - page 92

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Table of Contents
ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
2009 2008
NET SALES $ 48,393 $ 56,218
Cost of Goods Sold 22,037 25,621
GROSS PROFIT 26,356 30,597
Stores and Distribution Expense 146,826 75,148
Marketing, General and Administrative Expense 8,556 14,411
Other Operating Income, Net (11) (86)
NET LOSS BEFORE INCOME TAXES(1) $ (129,016) $ (58,876)
Income Tax Benefit (50,316) (22,962)
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX $ (78,699) $ (35,914)
NET LOSS PER SHARE FROM DISCONTINUED OPERATIONS:
BASIC $ (0.90) $ (0.41)
DILUTED $ (0.89) $ (0.40)
(1) Includes non-cash, pre-tax asset impairment charges of approximately $51.5 million and $22.3 million during the fifty-two weeks
ended January 30, 2010 and January 31, 2009, respectively, and net costs associated with the closure of the RUEHL business,
primarily net lease termination costs of approximately $53.9 million and severance and other charges of $2.2 million during the
fifty-two weeks ended January 30, 2010.
17. RETIREMENT BENEFITS
The Company maintains the Abercrombie & Fitch Co. Savings & Retirement Plan, a qualified plan. All U.S. associates are
eligible to participate in this plan if they are at least 21 years of age and have completed a year of employment with 1,000 or more
hours of service. In addition, the Company maintains the Abercrombie & Fitch Co. Nonqualified Savings and Supplemental
Retirement, composed of two sub-plans (Plan I and Plan II). Plan I contains contributions made through December 31, 2004, while
Plan II contains contributions made on and after January 1, 2005. Participation in these plan is based on service and compensation.
The Company's contributions are based on a percentage of associates' eligible annual compensation. The cost of the Company's
contributions to these plans was $19.4 million in Fiscal 2010, $17.8 million in Fiscal 2009 and $24.7 million in Fiscal 2008.
Effective February 2, 2003, the Company established a Chief Executive Officer Supplemental Executive Retirement Plan (the
"SERP") to provide additional retirement income to its Chairman and Chief Executive Officer ("CEO"). Subject to service
requirements, the CEO will receive a monthly benefit equal to 50% of his final average compensation (as defined in the SERP) for
life. The final average compensation used for the calculation is based on actual compensation, base salary and cash incentive
compensation, averaged over the last 36 consecutive full calendar months ending before the CEO's retirement. The Company recorded
net
89