Urban Outfitters 2009 Annual Report Download - page 68

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URBAN OUTFITTERS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
6. Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the following:
January 31,
2009 2008
Accrued rents and estimated property taxes ..................... $10,074 $ 8,707
Gift certificates and merchandise credits ....................... 22,307 19,518
Accrued construction ...................................... 6,261 6,629
Accrued income taxes ...................................... 301 20,569
Accrued sales taxes ........................................ 5,174 4,024
Sales return reserve ....................................... 7,547 6,018
Other current liabilities ..................................... 14,556 17,765
Total ............................................... $66,220 $83,230
7. Line of Credit Facility
On December 11, 2007, the Company renewed and amended its line of credit facility with
Wachovia Bank, National Association (the “Line”). The Line is a three-year revolving credit facility
with an accordion feature allowing an increase in available credit up to $100 million at the Company’s
discretion, subject to a seven day request period. As of January 31, 2009, the credit limit under the
Line was $60 million. The Line contains a sub-limit for borrowings by the Company’s European
subsidiaries that are guaranteed by the Company. Cash advances bear interest at LIBOR plus 0.50% to
1.60% based on the Company’s achievement of prescribed adjusted debt ratios. The Line subjects the
Company to various restrictive covenants, including maintenance of certain financial ratios and
covenants such as fixed charge coverage and adjusted debt. The covenants also include limitations on
the Company’s capital expenditures, ability to repurchase shares and the payment of cash dividends.
As of January 31, 2009, there were no borrowings under the Line. Outstanding letters of credit and
stand-by letters of credit under the Line totaled approximately $35,139 as of January 31, 2009. The
available credit, including the accordion feature under the Line was $64,861 as of January 31, 2009.
The Company believes the renewed Line will satisfy its letter of credit needs through fiscal 2011.
Wachovia Bank, National Association was acquired by Wells Fargo, effective January 1, 2009. The
Wells Fargo acquisition does not affect the original line agreement.
F-20