Urban Outfitters 2012 Annual Report Download - page 71

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Table of Contents
URBAN OUTFITTERS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(in thousands, except share and per share data)
6. Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the following:
January 31,
2012 2011
Gift certificates and merchandise credits $ 34,331 $ 30,866
Accrued construction 21,866 8,103
Accrued income taxes 14,462 22,466
Sales return reserve 10,967 11,367
Accrued rents and estimated property taxes 9,118 9,329
Accrued sales taxes 9,089 7,780
Other current liabilities 22,249 17,997
Total $ 122,082 $ 107,908
7. Line of Credit Facility
On April 25, 2011, the Company amended its line of credit facility (the "Line") with Wells Fargo Bank, National Association. This amendment
extended the term of the Line for three years, increased the accordion feature from $100 million to $175 million, reduced the interest rate margin for certain
cash advances and modified certain financial covenants and terms. 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 1.50% 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 such as adjusted debt. The covenants
also include limitations on the Company's capital expenditures, ability to repurchase shares and the payment of cash dividends. On October 31, 2011, the
Company further amended the Line to revise certain financial covenants which included removing the limitation on share repurchases, as well as to join
certain subsidiaries of the Company as additional borrowers and guarantors and release certain others. As of and for the year ended January 31, 2012, there
were no borrowings under the Line. Outstanding letters of credit and stand-by letters of credit under the Line totaled approximately $59,685 as of January 31,
2012. The available credit, including the accordion feature, under the Line was $115,315 as of January 31, 2012.
8. Income Taxes
The components of income before income taxes are as follows:
Fiscal Year Ended January 31,
2012 2011 2010
Domestic $ 261,214 $ 374,777 $ 333,824
Foreign 27,617 42,431 10,582
$ 288,831 $ 417,208 $ 344,406
F-20