Urban Outfitters 2011 Annual Report Download - page 73

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URBAN OUTFITTERS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(in thousands, except share and per share data)
$80,000. 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, 2011,
there were no borrowings under the Line. Outstanding letters of credit and stand-by letters of credit
under the Line totaled approximately $55,478 and $36,281 as of January 31, 2011 and January 31,
2010, respectively. The available credit, including the accordion feature under the Line was $44,522
and $63,719 as of January 31, 2011 and January 31, 2010, respectively. The Company is negotiating a
renewal of the Line with the Bank. As part of these negotiations, the Company was granted an
extension of all of the existing terms, covenants and conditions of the Line through April, 2011. The
Company expects that such renewal will satisfy its letter of credit needs through at least 2014.
8. Income Taxes
The components of income before income taxes are as follows:
Fiscal Year Ended January 31,
2011 2010 2009
Domestic .............................................. $374,777 $333,824 $297,747
Foreign ................................................ 42,431 10,582 11,743
$417,208 $344,406 $309,490
The components of the provision for income tax expense are as follows:
Fiscal Year Ended January 31,
2011 2010 2009
Current:
Federal ............................................ $127,390 $107,350 $103,907
State .............................................. 19,492 13,216 15,037
Foreign ............................................ 6,095 1,786 533
152,977 122,352 119,477
Deferred:
Federal ............................................ (6,698) 2,960 (7,917)
State .............................................. (1,906) (365) (462)
Foreign ............................................ (123) (434) (972)
(8,727) 2,161 (9,351)
$144,250 $124,513 $110,126
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