Abercrombie & Fitch 2011 Annual Report Download - page 87

Download and view the complete annual report

Please find page 87 of the 2011 Abercrombie & Fitch annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 146

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146

ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
9. OTHER ASSETS
Other assets consisted of (in thousands):
2011 2010
Rabbi Trust ............................................... $ 85,149 $ 82,501
Long-term deposits ......................................... 78,617 61,658
Long-term supplies ......................................... 36,739 27,099
Intellectual property ......................................... 31,760 7,558
Restricted cash ............................................. 30,043 26,322
Non-current deferred tax assets ................................ 29,165 16,764
Prepaid income tax on intercompany items ....................... 16,049 13,709
Other .................................................... 39,727 23,730
Other assets ............................................... $347,249 $259,341
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
to standard insurance security requirements. Long-term supplies include, but are not limited to, hangers,
frames, sign holders, security tags, back-room supplies, and construction materials. Other includes prepaid
leases and various other assets.
10. 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 28,
2012
January 29,
2011
Deferred lease credits ...................................... $551,468 $ 544,223
Amortized deferred lease credits ............................. (327,399) (310,066)
Total deferred lease credits, net .............................. $224,069 $ 234,157
11. LEASED FACILITIES
Annual store rent is comprised of a fixed minimum amount and/or contingent rent based on a
percentage of sales. For scheduled rent escalation clauses during the lease terms, the Company records
minimum rental expenses on a straight-line basis over the terms of the leases on the Consolidated
Statements of Operations and Comprehensive Income. The term of the lease over which the Company
amortizes construction allowances and minimum rental expenses on a straight-line basis begins on the date
of initial possession.
Certain leases provide for contingent rents, which are primarily determined as a percentage of sales in
excess of a predetermined level. The Company records a contingent rent liability in accrued expenses on
84