Urban Outfitters 2010 Annual Report Download - page 69

Download and view the complete annual report

Please find page 69 of the 2010 Urban Outfitters annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 79

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79

URBAN OUTFITTERS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
by the Company. Cash advances bear interest at LIBOR plus 0.50% to 1.60% based on the Company’s
achievement of prescribed adjusted debt ratios. The Line subjects the Company to various restrictive
covenants, including maintenance of certain financial ratios and covenants such as fixed charge
coverage and adjusted debt. The covenants also include limitations on the Company’s capital
expenditures, ability to repurchase shares and the payment of cash dividends. As of January 31, 2010,
there were no borrowings under the Line. Outstanding letters of credit and stand-by letters of credit
under the Line totaled approximately $36,281 and $35,139 as of January 31, 2010 and January 31,
2009, respectively. The available credit, including the accordion feature under the Line was $63,719
and $64,861 as of January 31, 2010 and January 31, 2009, respectively. The Company believes the
renewed Line will satisfy its letter of credit needs through fiscal 2011. The Company plans to renew
the Line during fiscal 2011 and expects the renewal will satisfy their credit needs through fiscal 2011
and the foreseeable future. Wachovia Bank, National Association was acquired by Wells Fargo,
effective January 1, 2009. The Wells Fargo acquisition did not affect the original line agreement.
8. Income Taxes
The components of income before income taxes are as follows:
Fiscal Year Ended January 31,
2010 2009 2008
Domestic .............................................. $333,824 $297,747 $229,600
Foreign ................................................ 10,582 11,743 4,795
$344,406 $309,490 $234,395
The components of the provision for income tax expense are as follows:
Fiscal Year Ended January 31,
2010 2009 2008
Current:
Federal ............................................. $107,350 $103,907 $66,000
State ............................................... 13,216 15,037 9,936
Foreign ............................................. 1,786 533 1,010
122,352 119,477 76,946
Deferred:
Federal ............................................. 2,960 (7,917) (2,189)
State ............................................... (365) (462) (2,499)
Foreign ............................................. (434) (972) 1,906
2,161 (9,351) (2,782)
$124,513 $110,126 $74,164
F-20