Abercrombie & Fitch 2013 Annual Report Download - page 52

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52
Net Sales:
Net sales includes net merchandise sales through stores and direct-to-consumer operations, including shipping and
handling revenue. Net sales are reported by geographic area based on the location of the customer.
Fiscal 2012 Fiscal 2011 Fiscal 2010
(in thousands):
United States $ 3,087,205 $ 3,108,380 $ 2,821,993
Europe 1,137,664 822,473 443,836
Other International 285,936 227,205 202,948
Total $ 4,510,805 $ 4,158,058 $ 3,468,777
Long-Lived Assets:
February 2, 2013 January 28, 2012
(in thousands):
United States $ 742,926 $ 794,723
Europe 496,960 366,647
Other International 177,780 156,361
Total $ 1,417,666 $ 1,317,731
Long-lived assets included in the table above include primarily property and equipment (net), store supplies and lease
deposits.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the accounts of A&F and its subsidiaries. All intercompany balances and
transactions have been eliminated in consolidation.
CASH AND EQUIVALENTS
See Note 6, “CASH AND EQUIVALENTS.”
INVESTMENTS
See Note 7, “INVESTMENTS.”
RECEIVABLES
Receivables primarily include credit card receivables, construction allowances, value added tax (“VAT”) receivables and
other tax credits or refunds.
As part of the normal course of business, the Company has approximately three to four days of sales transactions
outstanding with its third-party credit card vendors at any point. The Company classifies these outstanding balances as credit
card receivables. Construction allowances are recorded for certain store lease agreements for improvements completed by the
Company. VAT receivables are payments the Company has made on purchases of goods and services that will be recovered as
sales are made to customers.
INVENTORIES
During the fourth quarter of Fiscal 2012, the Company elected to change its inventory valuation method from the
lower of cost or market utilizing the retail method to the lower of cost or market under the weighted average cost method. The
Company believes the new method is preferable as it is consistent with the practices of other specialty retailers and better aligns
with the way the Company manages its business with a focus on the actual margin realized. See Note 4, “CHANGE IN
ACCOUNTING PRINCIPLE,” for further details on the accounting change.
Inventories are principally valued at the lower of cost or market on a weighted-average cost basis. The Company
writes down inventory through a lower of cost or market adjustment, the impact of which is reflected in cost of goods sold in
the Consolidated Statements of Operations and Comprehensive Income. This adjustment is based on management's judgment
Table of Contents ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)