American Eagle Outfitters 2004 Annual Report Download - page 63

Download and view the complete annual report

Please find page 63 of the 2004 American Eagle Outfitters 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 86

  • 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

49
Part II
A summary of fixed minimum and contingent rent expense for all operating leases follows:
For the Years Ended
(In thousands) January 29,
2005
January 31,
2004
(Restated)
February 1,
2003
(Restated)
Store rent:
Fixed minimum $124,507 $100,418 $85,285
Contingent 6,788 4,758 5,304
Total store rent, excluding common area maintenance charges,
real estate taxes and certain other expenses 131,295
105,176
90,589
Offices, distribution facilities, equipment and other 11,265 16,943 17,525
Total rent expense $142,560 $122,119 $108,114
In addition, the Company is typically responsible under its store, office and distribution center leases for common
area maintenance charges, real estate taxes and certain other expenses.
The table below summarizes future minimum lease obligations, consisting of fixed minimum rent, under operating
leases in effect at January 29, 2005:
Fiscal years:
(In thousands)
Future Minimum
Lease Obligations
2005 $135,410
2006 135,810
2007 132,950
2008 129,295
2009 121,059
Thereafter 327,896
Total $982,420
10. Discontinued Operations
During December 2004, the Company completed its disposition of Bluenotes to 6295215 Canada Inc (the
“Purchaser”). The transaction had an effective date of December 5, 2004. In accordance with SFAS No. 144,
Accounting for the Impairment or Disposal of Long-Lived Assets, the accompanying Consolidated Statements of
Operations reflect Bluenotes’ results of operations as discontinued operations for all periods presented.
Additionally, the accompanying Consolidated Statements of Cash Flows reflect Bluenotes’ results of operations as
discontinued operations (note that amounts in the Company’s Consolidated Balance Sheets have not been
reclassified to reflect Bluenotes as discontinued operations).
The Company expects to receive approximately $23 million as consideration for the sale of certain of its Bluenotes
assets, including inventory and property and equipment. As of January 29, 2005, the Company had received $20.7
million of the aforementioned consideration. In accordance with the terms of the sale, the remaining cash proceeds
will be received as the inventory is sold by the Purchaser in the normal course of business through April 2, 2005. The
transaction resulted in an after-tax loss of $4.8 million, or $0.03 per diluted share, which has been recorded in
discontinued operations during Fiscal 2004.