American Eagle Outfitters 2004 Annual Report Download - page 60

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46
Part II
During Fiscal 2004, the Company discontinued its cost sharing arrangement with SSC for the acquisition of an
interest in several corporate aircraft. The Company paid $0.1 million during Fiscal 2004 and $1.0 million during
Fiscal 2003 and Fiscal 2002 to cover its share of operating costs based on usage of the corporate aircraft under the
cost sharing arrangement.
See Part III, Item 13 of this Form 10-K for additional information regarding related party transactions.
4. Accounts and Note Receivable
Accounts and note receivable are comprised of the following:
(In thousands) January 29,
2005
January 31,
2004
(Restated)
Fabric $2,871 $5,136
Related party - 4,219
Construction allowances 6,801 5,188
Sell-offs to non-related parties 6,657 2,479
Taxes 2,584 2,319
Distribution services 2,015 1,040
Sale of Bluenotes 2,707 -
Other 2,797 3,748
Total $26,432 $24,129
The fabric receivable represents amounts due from a third party vendor for fabric purchased by the Company and
sold to the respective vendor. Upon receipt of the finished goods from the vendor, the Company records the full cost
of the merchandise in inventory, and reduces the amount of payment due to the third party by the respective fabric
receivable.
5. Property and Equipment
Property and equipment consists of the following:
(In thousands) January 29,
2005
January 31,
2004
(Restated)
Land $4,655 $2,355
Buildings 36,301 20,999
Leasehold improvements 358,408 354,406
Fixtures and equipment 218,050 187,304
Construction in progress 2,318 1,693
619,732 566,757
Less: Accumulated depreciation and amortization (266,519) (225,802)
Net property and equipment $353,213 $340,955