American Eagle Outfitters 2005 Annual Report Download - page 68

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PAGE 44 AMERICAN EAGLE OUTFITTERS
Segment Information
In accordance with Statement of Financial Accounting Standards No. 131, Disclosures about Segments of an Enterprise
and Related Information (“SFAS No. 131”), the Company has identified three operating segments (U.S. retail stores,
Canadian retail stores and the Company's e-commerce operation, ae.com) that reflect the basis used internally to review
performance and allocate resources. The three operating segments have been aggregated and are presented as one
reportable segment, as permitted by SFAS No. 131, based on their similar economic characteristics, products,
production processes, target customers and distribution methods. Prior to its disposition, Bluenotes was presented as a
separate reportable segment. (See Note 9 of the Consolidated Financial Statements.)
The following tables present summarized geographical information:
For the Years Ended
(In thousands)
January 28,
2006
January 29,
2005
January 31,
2004
Net sales (1):
United States $2,132,497 $1,751,776 $1,339,636
Foreign (2) 176,874 129,465 95,800
Total net sales $2,309,371 $1,881,241 $1,435,436
(1) Net sales data represents American Eagle operations only. Bluenotes’ net sales amounts have been excluded from all
periods as they are being presented in discontinued operations. See Note 9 of the Consolidated Financial Statements
for additional information regarding Bluenotes.
(2) Amounts represent sales from American Eagle’s Canadian retail stores, as well as AE Direct sales, which are billed
to and/or shipped to foreign countries.
(In thousands)
January 28,
2006
January 29,
2005
Long-lived assets, net:
United States $329,050 $320,021
Foreign (1) 26,418 29,762
Total long-lived assets, net (1) $355,468 $349,783
(1) Long-lived assets as of January 28, 2006 and January 29, 2005 do not include the assets of National Logistics
Services subject to the sales agreement entered into during the fourth quarter of Fiscal 2005, as they have been
classified as held-for-sale. See Note 9 of the Consolidated Financial Statements for additional information regarding
National Logistics Services.
Reclassification
Certain reclassifications have been made to the Consolidated Financial Statements for prior periods in order to conform
to the Fiscal 2005 presentation.
3. Related Party Transactions
The Company and its wholly-owned subsidiaries historically had various transactions with related parties. The nature of
the Company's relationship with the related parties and a description of the respective transactions is stated below.
As of January 28, 2006, the Schottenstein-Deshe-Diamond families (the “families”) owned 15% of the outstanding
shares of Common Stock of the Company. The families also own a private company, Schottenstein Stores Corporation