American Eagle Outfitters 2008 Annual Report Download - page 64

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Performance-Based Restricted Stock Shares
Weighted-
Average Grant
Date Fair Value
For the Year Ended
January 31, 2009
Nonvested — February 2, 2008 ............................... 612,575 $29.73
Granted ................................................. 878,415 21.24
Vested .................................................. (433,983) 29.72
Cancelled ............................................... (299,195) 26.33
Nonvested — January 31, 2009 ............................... 757,812 $21.26
As of January 31, 2009, there was $0.2 million of unrecognized compensation expense related to nonvested
restricted stock awards that is expected to be recognized over a weighted average period of four months. The total
fair value of restricted stock awards vested during Fiscal 2008, Fiscal 2007 and Fiscal 2006 was $9.6 million,
$32.6 million and $18.9 million, respectively.
As of January 31, 2009, the Company had 4.1 million shares available for restricted stock awards, restricted
stock units or other full value stock awards.
11. Retirement Plan and Employee Stock Purchase Plan
The Company maintains a profit sharing and 401(k) plan (the “Retirement Plan”). Under the provisions of the
Retirement Plan, full-time employees and part-time employees are automatically enrolled to contribute 3% of their
salary if they have attained 201⁄2years of age and have completed 60 days of service. Individuals can decline
enrollment or can contribute up to 30% of their salary to the 401(k) plan on a pretax basis, subject to IRS limitations.
After one year of service, the Company will match 100% of the first 3% of pay plus an additional 50% of the next
3% of pay that is contributed to the plan. Contributions to the profit sharing plan, as determined by the Board, are
discretionary. The Company recognized $6.3 million, $6.1 million and $6.9 million in expense during Fiscal 2008,
Fiscal 2007 and Fiscal 2006, respectively, in connection with the Retirement Plan.
The Employee Stock Purchase Plan is a non-qualified plan that covers all full-time employees and part-time
employees who are at least 18 years old and have completed 60 days of service. Contributions are determined by the
employee, with the Company matching 15% of the investment up to a maximum investment of $100 per pay period.
These contributions are used to purchase shares of Company stock in the open market.
12. Income Taxes
The components of income before income taxes were:
January 31,
2009
February 2,
2008
February 3,
2007
For the Years Ended
(In thousands)
U.S. .......................................... $244,629 $568,519 $561,178
Foreign ........................................ 52,412 67,862 67,889
Total .......................................... $297,041 $636,381 $629,067
62
AMERICAN EAGLE OUTFITTERS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)