Ulta 2010 Annual Report Download - page 60

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Company makes collateral and premium payments during the plan year and accrues expenses in the event
additional premium is due from the Company based on actual claim results. Insurance reserves and related
expense activity for fiscal 2010 and 2009 are as follows:
Workers Comp/
General Liability
Prepaid Asset
Employee
Health Care
Accrued Liability
Balance, January 31, 2009 ............................. $ 369 $ 1,803
Charged to expense................................. (2,720) 16,710
Payments ........................................ 3,532 (16,934)
Balance, January 30, 2010 ............................. 1,181 1,579
Charged to expense................................. (4,320) 17,601
Payments ........................................ 4,109 (17,572)
Balance, January 29, 2011 ............................. $ 970 $ 1,608
Net income per common share
Basic net income per common share is computed by dividing income available to common stockholders by
the weighted-average number of shares of common stock outstanding during the period. Diluted net income
per share includes dilutive common stock equivalents, using the treasury stock method.
3. Property and equipment
Property and equipment consist of the following:
January 29,
2011
January 30,
2010
Equipment and fixtures ....................................... $223,663 $ 195,431
Leasehold improvements...................................... 233,997 219,317
Electronic equipment and software . . . ........................... 105,808 89,491
Construction-in-progress ...................................... 16,331 12,268
579,799 516,507
Less accumulated depreciation and amortization .................... (253,700) (225,646)
Property and equipment, net ................................... $326,099 $ 290,861
The Company had no capitalized interest for fiscal 2010 as a result of not utilizing the credit facility during
the year. For the fiscal years 2009 and 2008, the Company capitalized interest of $242 and $799, respectively.
4. Commitments and contingencies
Leases — The Company leases retail stores, distribution and office facilities, and certain equipment. Original
non-cancelable lease terms range from three to ten years, and store leases generally contain renewal options
for additional years. A number of the Company’s store leases provide for contingent rentals based upon sales.
Contingent rent amounts were insignificant in fiscal 2010, 2009 and 2008. Total rent expense under operating
56
Ulta Salon, Cosmetics & Fragrance, Inc.
Notes to Financial Statements — (Continued)