Rue 21 2011 Annual Report Download - page 46

rue21, inc.
Notes to Consolidated Financial Statements
For the Year Ended January 28, 2012
(Dollars in thousands, unless otherwise indicated)
Note 1 — Business and Summary of Significant Accounting Policies
Organization
rue21, inc. (the Company or rue21) is a specialty retailer of junior and young men’s apparel and accessories
with 755, 638, and 535 stores as of January 28, 2012, January 29, 2011 and January 30, 2010 respectively, in
various strip centers, regional malls and outlet centers throughout the United States. Sales are generally transacted
for cash, checks and through the acceptance of third-party credit and debit cards.
On November 13, 2009, the Company completed an initial public offering of 7,780,252 shares of common
stock at a price to the public of $19.00 per share, of which 1,650,000 shares were sold by the Company, 6,130,252
were sold by the selling shareholders (including 913,590 by members of the Company’s management). Upon
completion of the offering, the Company received proceeds of approximately $29,156, net of underwriters’
discounts and commissions. On February 26, 2010, the Company completed an offering of 6,961,958 shares of
common stock, including 908,081 shares of common stock subsequently sold pursuant to the underwriters’ over-
allotment option, at a price of $28.50 per share, all of which were sold by funds advised by Apax Partners L.P., the
Company’s principal stockholder and certain members of the Company’s management. The Company received no
proceeds from the offering and incurred approximately $0.6 million in expense related to the offering.
In conjunction with the initial public offering of common stock, the Company was reincorporated in Delaware.
The Company’s authorized capital stock consists of 200,000,000 shares of common stock, par value $0.001 per
share, and 10,000,000 shares of preferred stock, par value $0.001 per share. The consolidated financial statements
do not reflect the reclassification of the common stock, $0.004 par value to common stock, $0.001 par value, other
than the related adjustment to par value and the increase in the number of authorized shares.
Principles of Consolidation
The consolidated financial statements include all the accounts of the Company and its wholly owned
subsidiaries “r services, llc” and “rue services corporation”. All intercompany transactions and balances have been
eliminated in consolidation. At January 28, 2012, the Company operated as one reporting segment.
Fiscal Year
The Company’s fiscal year is 52 or 53 weeks ending on the Saturday nearest to January 31 of the following
year. These consolidated financial statements were prepared for the 52 weeks ended January 28, 2012, “Fiscal Year
2011”. As used herein, “Fiscal Year 2010” and “Fiscal Year 2009” refer to the 52 week period ended January 29,
2011 and January 30, 2010, respectively.
Reclassifications
Certain prior period amounts have been reclassified to conform to the current year presentation.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States requires management to make estimates and assumptions. These estimates and assumptions affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
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