American Eagle Outfitters 2011 Annual Report Download - page 60

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Table of Contents
AMERICAN EAGLE OUTFITTERS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
11. Other Comprehensive Income (Loss)
The accumulated balances of other comprehensive (loss) income included as part of the Consolidated Statements of Stockholders' Equity follow:
Before
Tax
Amount
Tax
Benefit
(Expense)
Accumulated
Other
Comprehensive
(Loss) Income
(In thousands)
Balance at January 31, 2009 $ (27,835) $ 13,446 $ (14,389)
Temporary reversal of impairment related to ARS 24,041 (9,535) 14,506
Reclassification adjustment for realized losses in net income related to investment securities 940 — 940
Foreign currency translation gain 15,781 — 15,781
Balance at January 30, 2010 $ 12,927 $ 3,911 $ 16,838
Temporary impairment related to ARS (1,830) 690 (1,140)
Reclassification adjustment for realized losses in net income related to investment securities 12,142 (4,601) 7,541
Foreign currency translation gain 4,833 — 4,833
Balance at January 29, 2011 $ 28,072 $ — $ 28,072
Foreign currency translation gain 587 — 587
Balance at January 28, 2012 $ 28,659 $ — $ 28,659
Accumulated other comprehensive income consists only of foreign currency translation adjustment as of January 28, 2012 and January 29, 2011.
12. Share-Based Payments
The Company accounts for share-based compensation under the provisions of ASC 718, Compensation — Stock Compensation ("ASC 718"), which
requires the Company to measure and recognize compensation expense for all share-based payments at fair value. Total share-based compensation expense
included in the Consolidated Statements of Operations for Fiscal 2011, Fiscal 2010 and Fiscal 2009 was $12.3 million ($7.6 million, net of tax), $25.5 million
($15.7 million, net of tax) and $34.6 million ($21.4 million, net of tax), respectively.
ASC 718 requires recognition of compensation cost under a non-substantive vesting period approach for awards containing provisions that accelerate or
continue vesting upon retirement. Accordingly, for awards with such provisions, the Company recognizes compensation expense over the period from the
grant date to the date retirement eligibility is achieved, if that is expected to occur during the nominal vesting period. Additionally, for awards granted to
retirement eligible employees, the full compensation cost of an award must be recognized immediately upon grant.
At January 28, 2012, the Company had awards outstanding under three share-based compensation plans, which are described below.
Share-based compensation plans
1994 Stock Option Plan
On February 10, 1994, the Company's Board adopted the American Eagle Outfitters, Inc. 1994 Stock Option Plan (the "1994 Plan"). The 1994 Plan
provided for the grant of 12.2 million incentive or non-qualified
57