American Eagle Outfitters 2008 Annual Report Download - page 52

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Earnings Per Share
The following table shows the amounts used in computing earnings per share and the effect on net income and
the weighted average number of shares of potential dilutive common stock (stock options and restricted stock).
January 31,
2009
February 2,
2008
February 3,
2007
For the Years Ended
(In thousands)
Net income ....................................... $179,061 $400,019 $387,359
Weighted average common shares outstanding:
Basic shares ..................................... 205,169 216,119 222,662
Dilutive effect of stock options and non-vested restricted
stock ........................................ 2,413 4,161 5,722
Diluted shares ................................... 207,582 220,280 228,384
Equity awards to purchase 7.6 million, 2.5 million and 1.1 million shares of common stock during Fiscal 2008,
Fiscal 2007 and Fiscal 2006, respectively, were outstanding, but were not included in the computation of weighted
average diluted common share amounts as the effect of doing so would have been anti-dilutive. Additionally, for
Fiscal 2008, approximately 0.8 million shares of performance-based restricted stock were not included in the
computation of weighted average diluted common share amounts. This was due to the Company not attaining the
operating performance required for the shares to vest as compared to the pre-established annual performance goals.
Segment Information
In accordance with SFAS No. 131, Disclosures about Segments of an Enterprise and Related Information
(“SFAS No. 131”), the Company has identified four operating segments (American Eagle Brand U.S. and Canadian
retail stores, aerie by American Eagle retail stores, MARTIN + OSA retail stores and AEO Direct) that reflect the
basis used internally to review performance and allocate resources. All of the operating segments have been
aggregated and are presented as one reportable segment, as permitted by SFAS No. 131.
The following tables present summarized geographical information:
January 31,
2009
February 2,
2008
February 3,
2007
For the Years Ended
(In thousands)
Net sales:
United States ................................ $2,707,261 $2,770,119 $2,562,831
Foreign(1) .................................. 281,605 285,300 231,578
Total net sales ................................. $2,988,866 $3,055,419 $2,794,409
(1) Amounts represent sales from American Eagle and aerie Canadian retail stores, as well as AEO Direct sales,
that are billed to and/or shipped to foreign countries.
January 31,
2009
February 2,
2008
(In thousands)
Long-lived assets, net:
United States ............................................ $708,180 $596,715
Foreign ................................................. 42,766 40,332
Total long-lived assets, net .................................... $750,946 $637,047
50
AMERICAN EAGLE OUTFITTERS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)