American Eagle Outfitters 2009 Annual Report Download - page 65

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As of January 30, 2010, there was $2.1 million of unrecognized compensation expense related to nonvested
restricted stock awards that is expected to be recognized over a weighted average period of one month. The total fair
value of restricted stock awards vested during Fiscal 2009, Fiscal 2008 and Fiscal 2007 was $0.6 million,
$9.6 million and $32.6 million, respectively.
As of January 30, 2010, the Company had 28.4 million shares available for all equity grants.
12. Retirement Plan and Employee Stock Purchase Plan
The Company maintains a profit sharing and 401(k) plan (the “Retirement Plan”). Under the provisions of the
Retirement Plan, full-time employees and part-time employees are automatically enrolled to contribute 3% of their
salary if they have attained 201⁄2years of age. In addition, full-time employee need to have completed 60 days of
service and part-time employees must complete 1,000 hours worked to be eligible. Individuals can decline
enrollment or can contribute up to 50% of their salary to the 401(k) plan on a pretax basis, subject to IRS limitations.
After one year of service, the Company will match 100% of the first 3% of pay plus an additional 50% of the next
3% of pay that is contributed to the plan. Contributions to the profit sharing plan, as determined by the Board, are
discretionary. The Company recognized $7.2 million, $6.3 million and $6.1 million in expense during Fiscal 2009,
Fiscal 2008 and Fiscal 2007, respectively, in connection with the Retirement Plan.
The Employee Stock Purchase Plan is a non-qualified plan that covers all full-time employees and part-time
employees who are at least 18 years old and have completed 60 days of service. Contributions are determined by the
employee, with the Company matching 15% of the investment up to a maximum investment of $100 per pay period.
These contributions are used to purchase shares of Company stock in the open market.
13. Income Taxes
The components of income before income taxes were:
January 30,
2010
January 31,
2009
February 2,
2008
For the Years Ended
(In thousands)
U.S. .......................................... $197,948 $244,629 $568,519
Foreign ........................................ 34,443 52,412 67,862
Total .......................................... $232,391 $297,041 $636,381
64
AMERICAN EAGLE OUTFITTERS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)