Express 2010 Annual Report Download - page 85

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Other Operating Expense, Net
Other operating expense, net consists of advisory fees from Golden Gate and Limited Brands, gain/loss on
disposal of assets, and excess proceeds from the settlement of insurance claims.
Other Income, Net
Other income, net consists of the change in fair market value of the interest rate swap.
Segment Reporting
The Company defines an operating segment on the same basis that it uses to evaluate performance internally. The
Company has determined that the Chief Executive Officer is its Chief Operating Decision Maker and that there is
one operating segment. Therefore, the Company reports results as a single segment, which includes the operation
of its Express brick and mortar retail stores and the express.com e-commerce website.
The following is information regarding the Company’s major product classes and sales channels:
2010 2009 2008
(in thousands)
Classes:
Apparel ............................ $1,715,435 $1,564,060 $1,592,468
Accessories and other ................. 172,918 144,806 139,703
Other revenue ....................... 17,461 12,200 4,839
Total net sales ........................... $1,905,814 $1,721,066 $1,737,010
2010 2009 2008
(in thousands)
Channels:
Stores .............................. $1,740,818 $1,616,642 $1,704,376
E-commerce ........................ 147,535 92,224 27,795
Other revenue ....................... 17,461 12,200 4,839
Total net sales ........................... $1,905,814 $1,721,066 $1,737,010
Other revenue consists primarily of shipping and handling revenue related to e-commerce activity, gift card
breakage, and royalties from the Development Agreement.
Supplemental Cash Flow Information
Cash paid for interest was $40.6 million, $51.6 million, and $16.3 million in 2010, 2009, and 2008, respectively.
The Golden Gate affiliate’s portion of cash paid for interest under both the 13.5% Topco Term B Loan (“Term B
Loan”) and 14.5% Topco Term C Loan (“Term C Loan”), collectively referred to as the “Topco credit facility”,
and the Senior Notes, was $10.1 million, $14.4 million, and $2.9 million in 2010, 2009, and 2008, respectively.
Amounts paid directly to taxing authorities were $20.5 million, $0.3 million, and $0.3 million in 2010, 2009, and
2008, respectively.
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