Abercrombie & Fitch 2013 Annual Report Download - page 66

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66
12. 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 the Consolidated Balance Sheets,
and the corresponding rent expense on the Consolidated Statements of Operations and Comprehensive Income when the
Company determines that it is probable that the expense has been incurred and the amount can be reasonably estimated.
Store lease terms may also require additional payments covering taxes, common area costs and certain other expenses.
A summary of rent expense follows (in thousands):
2012 2011 2010
Store rent:
Fixed minimum $ 414,061 $ 388,004 $ 333,419
Contingent 16,828 16,942 9,306
Deferred lease credits amortization (45,926)(48,219)(48,373)
Total store rent expense 384,963 356,727 294,352
Buildings, equipment and other 6,259 4,719 4,988
Total rent expense $ 391,222 $ 361,446 $ 299,340
At February 2, 2013, the Company was committed to non-cancelable leases with remaining terms of one to 18 years.
Excluded from the obligations below are amounts related to portions of lease terms that are currently cancelable at the
Company's discretion. While included in the obligations below, in many instances, the Company has options to terminate
certain leases if stated sales volume levels are not met or the Company ceases operations in a given country. A summary of
operating lease commitments, including $71.7 million of leasehold financing obligations and related interest as discussed in
Note 17, under non-cancelable leases follows (in thousands):
Fiscal 2013 $ 418,478
Fiscal 2014 $ 391,925
Fiscal 2015 $ 361,257
Fiscal 2016 $ 343,337
Fiscal 2017 $ 242,735
Thereafter $ 868,479
13. ACCRUED EXPENSES
Accrued expenses consisted of (in thousands):
2012 2011
Accrued payroll and related costs $ 74,747 $ 57,633
Accrued taxes 56,219 68,138
Gift card liability 47,683 47,669
Accrued rent 36,861 33,966
Construction in progress 34,732 47,526
Other 145,492 114,141
Accrued expenses $ 395,734 $ 369,073
Table of Contents ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)