Urban Outfitters 2012 Annual Report Download - page 58

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Table of Contents
URBAN OUTFITTERS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share data)
1. Nature of Business
Urban Outfitters, Inc. (the "Company" or "Urban Outfitters"), which was founded in 1970 and originally operated by a predecessor partnership, was
incorporated in the Commonwealth of Pennsylvania in 1976. The principal business activity of the Company is the operation of a general consumer product
retail and wholesale business selling to customers through various channels including retail stores, nine websites and five catalogs. As of January 31, 2012
and 2011, the Company operated 429 and 372 stores, respectively. Stores located in the United States totaled 381 as of January 31, 2012 and 334 as of
January 31, 2011. Operations in Europe and Canada included 33 stores and 15 stores as of January 31, 2012, respectively and 24 stores and 14 stores as of
January 31, 2011, respectively. In addition, the Company's wholesale segment sold and distributed apparel to approximately 1,400 better department and
specialty retailers worldwide.
2. Summary of Significant Accounting Policies
Fiscal Year-End
The Company operates on a fiscal year ending January 31 of each year. All references to fiscal years of the Company refer to the fiscal years ended on
January 31 in those years. For example, the Company's fiscal 2012 ended on January 31, 2012.
Principles of Consolidation
The Consolidated Financial Statements include the accounts of Urban Outfitters, Inc. and all of its subsidiaries. All inter-company transactions and
accounts have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements, in conformity with accounting principles generally accepted in the United States, requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of net sales and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents
Cash and cash equivalents are defined as cash and short-term highly liquid investments with maturities of less than three months at the time of
purchase. These short-term highly liquid investments are both readily convertible to known amounts of cash and so near their maturity that they present
insignificant risk of changes in value because of changes in interest rates. As of January 31, 2012 and 2011, cash and cash equivalents included cash on hand,
cash in banks and money market accounts.
Marketable Securities
All of the Company's marketable securities as of January 31, 2012 and 2011, are classified as available-for-sale and are carried at fair value, which
approximates amortized cost. Interest on these
F-7