American Eagle Outfitters 2009 Annual Report Download - page 33

were repurchased for the payment of taxes in connection with the vesting of share-based payments, as permitted
under the 2005 Stock Award and Incentive Plan.
The aforementioned share repurchases have been recorded as treasury stock.
Dividends
A $0.10 per share dividend was paid during each quarter of Fiscal 2009 and Fiscal 2008. Subsequent to the
fourth quarter of Fiscal 2009, our Board declared a quarterly cash dividend of $0.10 per share, payable on April 9,
2010, to stockholders of record at the close of business on March 29, 2010. The payment of future dividends is at the
discretion of our Board and is based on future earnings, cash flow, financial condition, capital requirements,
changes in U.S. taxation and other relevant factors. It is anticipated that any future dividends paid will be declared
on a quarterly basis.
Obligations and Commitments
Disclosure about Contractual Obligations
The following table summarizes our significant contractual obligations as of January 30, 2010:
Total
Less than
1 Year
1-3
Years
3-5
Years
More than
5 Years
Payments Due by Period
(In thousands)
Operating leases(1) ............. $1,744,507 $242,859 $437,375 $371,225 $693,048
Unrecognized tax benefits(2) ...... 38,618 — — — 38,618
Purchase obligations(3) .......... 376,900 369,527 3,078 3,514 781
Total contractual obligations ...... $2,160,025 $612,386 $440,453 $374,739 $732,447
(1) Operating lease obligations consist primarily of future minimum lease commitments related to store operating
leases (Refer to Note 9 to the Consolidated Financial Statements). Operating lease obligations do not include
common area maintenance, insurance or tax payments for which we are also obligated.
(2) The amount of unrecognized tax benefits as of January 30, 2010 was $38.6 million, including approximately
$7.0 million of accrued interest and penalties. Unrecognized tax benefits are positions taken or expected to be
taken on an income tax return that may result in additional payments to tax authorities. The Company does not
anticipate that any significant unrecognized tax benefits will be realized within one year. Accordingly, the
balance of the unrecognized tax benefits are included in the “More than 5 Years” column as we are not able to
reasonably estimate the timing of the potential future payments.
(3) Purchase obligations primarily include binding commitments to purchase merchandise inventory as well as
other legally binding commitments made in the normal course of business. Included in the above purchase
obligations are inventory commitments guaranteed by outstanding letters of credit, as shown in the table below.
Disclosure about Commercial Commitments
The following table summarizes our significant commercial commitments as of January 30, 2010:
Total Amount
Committed
Less than
1 Year
1-3
Years
3-5
Years
More than
5 Years
Amount of Commitment Expiration per Period
(In thousands)
Letters of credit(1) .................... $51,468 $51,468 — — —
Total commercial commitments ........... $51,468 $51,468 — — —
(1) Letters of credit represent commitments, guaranteed by a bank, to pay vendors for merchandise upon
presentation of documents demonstrating that the merchandise has shipped.
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