American Eagle Outfitters 2009 Annual Report Download - page 43

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Merchandise Mix
The following table sets forth the approximate consolidated percentage of net sales attributable to each
merchandise group for each of the periods indicated:
January 30,
2010
January 31,
2009
February 2,
2008
For the Years Ended
Men’s apparel and accessories........................ 40% 42% 38%
Women’s apparel and accessories (excluding aerie) ........ 51% 50% 55%
aerie .......................................... 9% 8% 7%
Total ........................................ 100% 100% 100%
2. Summary of Significant Accounting Policies
Principles of Consolidation
The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsid-
iaries. All intercompany transactions and balances have been eliminated in consolidation. At January 30, 2010, the
Company operated in one reportable segment.
Fiscal Year
The Company’s financial year is a 52/53 week year that ends on the Saturday nearest to January 31. As used
herein, “Fiscal 2010” refers to the 52 week periods ending January 29, 2011. “Fiscal 2009”,“Fiscal 2008” and
“Fiscal 2007” refer to the 52 week periods ended January 30, 2010, January 31, 2009 and February 2, 2008,
respectively. “Fiscal 2006” refers to the 53 week period ended February 3, 2007. “Fiscal 2005” refers to the 52 week
periods ended January 28, 2006.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America (“GAAP”) requires the Company’s 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 revenues and expenses during the reporting period. Actual
results could differ from those estimates. On an ongoing basis, our management reviews its estimates based on
currently available information. Changes in facts and circumstances may result in revised estimates.
Recent Accounting Pronouncements
In July 2009, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting
Standards (“SFAS”) 168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted
Accounting Principles, a replacement of FASB Statement No. 162 The Hierarchy of Generally Accepted
Accounting Principles. SFAS 168 establishes the FASB Accounting Standard Codification (“ASC”) as the single
source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in
the preparation of financial statements in conformity with GAAP. Effective July 2009, the FASB ASC is considered
the single source of authoritative U.S. accounting and reporting standards, except for additional authoritative rules
and interpretive releases issued by the Securities and Exchange Commission (“SEC”). The Company adopted
SFAS 168, as codified in ASC 105, Generally Accepted Accounting Principles, as of October 31, 2009. All
accounting references within this Annual Report on Form 10-K have been updated and, therefore, previous
references to GAAP have been replaced with references to GAAP as codified in the ASC.
42
AMERICAN EAGLE OUTFITTERS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)