Abercrombie & Fitch 2015 Annual Report Download - page 54

Table of Contents ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
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In Fiscal 2013, the Company incurred non-cash asset impairment charges of $46.7 million, excluding impairment charges incurred
in connection with the Gilly Hicks restructuring, as a result of the impact of sales trends on the profitability of a number of stores
identified in the third quarter of Fiscal 2013 as well as fiscal year-end review of store-related long-lived assets. The non-cash asset
impairment charges primarily related to 23 Abercrombie & Fitch stores, four abercrombie kids stores, and 70 Hollister stores. In
addition, the Company incurred charges of $37.9 million related to the Gilly Hicks restructuring.
The Company had $37.3 million and $40.1 million of construction project assets in property and equipment, net at January 30,
2016 and January 31, 2015, respectively, related to the construction of buildings in certain lease arrangements where the Company
is deemed to be the owner of the construction project.
6. RABBI TRUST ASSETS
Investments of Rabbi Trust assets consisted of the following:
(in thousands) January 30, 2016 January 31, 2015
Rabbi Trust assets:
Trust-owned life insurance policies (at cash surrender value) $ 96,567 $ 93,424
Money market funds 23 24
Total Rabbi Trust assets $ 96,590 $ 93,448
The irrevocable rabbi trust (the “Rabbi Trust”) is intended to be used as a source of funds to match respective funding obligations
to participants in the Abercrombie & Fitch Co. Nonqualified Savings and Supplemental Retirement Plan I, the Abercrombie &
Fitch Co. Nonqualified Savings and Supplemental Retirement Plan II and the Supplemental Executive Retirement Plan. The Rabbi
Trust assets primarily consist of trust-owned life insurance policies which are recorded at cash surrender value. The change in cash
surrender value of the trust-owned life insurance policies held in the Rabbi Trust resulted in realized gains of $3.1 million, $3.2
million and $2.6 million for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively, recorded in interest expense, net on the
Consolidated Statements of Operations and Comprehensive Income (Loss).
The Rabbi Trust assets are included in other assets on the Consolidated Balance Sheets and are restricted in their use as noted
above.
7. OTHER ASSETS
Other assets consisted of:
(in thousands) January 30, 2016 January 31, 2015
Rabbi Trust $ 96,590 $ 93,448
Deferred tax assets 89,677 96,999
Long-term deposits 64,098 64,415
Intellectual property 28,057 27,943
Long-term supplies 25,475 31,565
Restricted cash 20,581 14,835
Prepaid income tax on intercompany items 7,344 9,968
Other 28,059 34,021
Other assets $ 359,881 $ 373,194
Long-term supplies include, but are not limited to, hangers, frames, sign holders, security tags, back-room supplies and construction
materials. Intellectual property primarily includes trademark assets associated with the Company's international operations,
consisting of finite-lived and indefinite-lived intangible assets of approximately $14.4 million and $13.7 million, respectively, as
of January 30, 2016, and finite-lived and indefinite-lived intangible assets of approximately $15.3 million and $12.6 million,
respectively, as of January 31, 2015. The Company's finite-lived intangible assets are amortized over a useful life of 10 to 20
years. Restricted cash includes various cash deposits with international banks that are used as collateral for customary non-debt