Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
3-May-14 | 30-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'ABERCROMBIE & FITCH CO /DE/ | ' |
Entity Central Index Key | '0001018840 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 3-May-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Current Fiscal Year End Date | '--01-31 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 72,779,580 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | 3-May-14 | 4-May-13 | |
Income Statement [Abstract] | ' | ' | |
NET SALES | $822,428 | $838,769 | |
Cost of Goods Sold | 310,769 | 285,603 | |
GROSS PROFIT | 511,659 | 553,166 | |
Stores and Distribution Expense | 417,571 | 449,125 | |
Marketing, General and Administrative Expense | 123,581 | 118,780 | |
Restructuring Charges | 5,633 | 0 | |
Other Operating Income, Net | -3,620 | -818 | |
OPERATING INCOME (LOSS) | -31,506 | [1] | -13,921 |
Interest Expense, Net | 1,997 | 1,628 | |
INCOME (LOSS) BEFORE TAXES | -33,503 | -15,549 | |
Tax Expense (Benefit) | -9,832 | -8,346 | |
NET INCOME (LOSS) | -23,671 | -7,203 | |
NET INCOME (LOSS) PER SHARE: | ' | ' | |
BASIC (in dollars per share) | ($0.32) | ($0.09) | |
DILUTED (in dollars per share) | ($0.32) | ($0.09) | |
WEIGHTED-AVERAGE SHARES OUTSTANDING: | ' | ' | |
BASIC (in shares) | 74,483 | 78,324 | |
DILUTED (in shares) | 74,483 | 78,324 | |
DIVIDENDS DECLARED PER SHARE | $0.20 | $0.20 | |
OTHER COMPREHENSIVE INCOME (LOSS) | ' | ' | |
Foreign Currency Translation Adjustments | 14,866 | -17,260 | |
Unrealized Gain (Loss) on Derivative Financial Instruments, net of taxes | -3,129 | 9,495 | |
Other Comprehensive Income (Loss) | 11,737 | -7,765 | |
COMPREHENSIVE INCOME (LOSS) | ($11,934) | ($14,968) | |
[1] | Includes charges related to the restructuring of the Gilly Hicks brand, the Company's profit improvement initiative and legal, advisory and other charges related to certain corporate governance matters of which $6.9 million is included for International Stores, $9.2 million is included for Other and $0.5 million of income related to the true-up of Gilly Hicks estimated liabilities, net of additional charges, is included in U.S. Stores for the thirteen-week period ended May 3, 2014. |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | 3-May-14 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and Equivalents | $357,122 | $600,116 |
Receivables | 69,983 | 67,965 |
Inventories | 486,026 | 530,192 |
Deferred Income Taxes | 36,770 | 21,835 |
Other Current Assets | 103,125 | 100,458 |
TOTAL CURRENT ASSETS | 1,053,026 | 1,320,566 |
PROPERTY AND EQUIPMENT, NET | 1,121,777 | 1,131,341 |
OTHER ASSETS | 391,590 | 399,090 |
TOTAL ASSETS | 2,566,393 | 2,850,997 |
CURRENT LIABILITIES: | ' | ' |
Accounts Payable | 122,075 | 130,715 |
Accrued Expenses | 282,878 | 322,834 |
Deferred Lease Credits | 32,787 | 36,165 |
Income Taxes Payable | 17,362 | 63,508 |
Short-Term Portion of Borrowings | 15,000 | 15,000 |
TOTAL CURRENT LIABILITIES | 470,102 | 568,222 |
LONG-TERM LIABILITIES: | ' | ' |
Deferred Lease Credits | 137,570 | 140,799 |
Long-Term Portion of Borrowings | 116,250 | 120,000 |
Leasehold Financing Obligations | 61,691 | 60,726 |
Other Liabilities | 228,180 | 231,757 |
TOTAL LONG-TERM LIABILITIES | 543,691 | 553,282 |
STOCKHOLDERS' EQUITY: | ' | ' |
Class A Common Stock - $0.01 par value: 150,000 shares authorized and 103,300 shares issued at each of May 3, 2014 and February 1, 2014 | 1,033 | 1,033 |
Paid-In Capital | 423,512 | 433,620 |
Retained Earnings | 2,517,934 | 2,556,270 |
Accumulated Other Comprehensive Income (Loss), net of tax | -9,180 | -20,917 |
Treasury Stock, at Average Cost: 30,525 and 26,898 shares at May 3, 2014 and February 1, 2014, respectively | -1,380,699 | -1,240,513 |
TOTAL STOCKHOLDERS’ EQUITY | 1,552,600 | 1,729,493 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $2,566,393 | $2,850,997 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | 3-May-14 | Feb. 01, 2014 |
STOCKHOLDERS' EQUITY: | ' | ' |
Treasury Stock, at Average Cost (in shares) | 30,525,000 | 26,898,000 |
Class A Common Stock | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Class A Common Stock, par value | 0.01 | 0.01 |
Class A Common Stock, shares authorized | 150,000,000 | 150,000,000 |
Class A Common Stock, shares issued | 103,300,000 | 103,300,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
OPERATING ACTIVITIES: | ' | ' |
Net Income (Loss) | ($23,671) | ($7,203) |
Impact of Other Operating Activities on Cash Flows: | ' | ' |
Depreciation and Amortization | 58,897 | 59,459 |
Loss on Disposal / Write-off of Assets | 1,360 | 1,618 |
Lessor Construction Allowances | 588 | 5,873 |
Amortization of Deferred Lease Credits | -12,005 | -10,491 |
Deferred Taxes | -17,189 | -12,353 |
Share-Based Compensation | 5,288 | 13,247 |
Changes in Assets and Liabilities: | ' | ' |
Inventories | 45,461 | -32,584 |
Accounts Payable and Accrued Expenses | -45,834 | -75,081 |
Income Taxes | -47,555 | -80,690 |
Other Assets | 6,870 | -2,149 |
Other Liabilities | -12,350 | -3,275 |
NET CASH USED FOR OPERATING ACTIVITIES | -40,140 | -143,629 |
INVESTING ACTIVITIES: | ' | ' |
Capital Expenditures | -37,829 | -42,372 |
Other Investing | 0 | -2,637 |
NET CASH USED FOR INVESTING ACTIVITIES | -37,829 | -45,009 |
FINANCING ACTIVITIES: | ' | ' |
Excess Tax Benefit from Share-Based Compensation | 61 | 1,112 |
Proceeds from Share-Based Compensation | 52 | 98 |
Purchase of Treasury Stock | -150,000 | -16,305 |
Repayments of Borrowings | -3,750 | -3,750 |
Proceeds from Borrowings | 0 | 150,000 |
Change in Outstanding Checks and Other | -3,386 | -7,193 |
Dividends Paid | -14,665 | -15,693 |
NET CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES | -171,688 | 108,269 |
EFFECT OF EXCHANGE RATES ON CASH | 6,663 | -7,235 |
NET DECREASE IN CASH AND EQUIVALENTS: | -242,994 | -87,604 |
Cash and Equivalents, Beginning of Period | 600,116 | 643,505 |
CASH AND EQUIVALENTS, END OF PERIOD | 357,122 | 555,901 |
SIGNIFICANT NON-CASH INVESTING ACTIVITIES: | ' | ' |
Change in Accrual for Construction in Progress | ($3,789) | ($5,758) |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
3-May-14 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
Abercrombie & Fitch Co. (“A&F”), through its wholly-owned subsidiaries (collectively, A&F and its wholly-owned subsidiaries are referred to as the “Company”), is a specialty retailer of high-quality, casual apparel for men, women and kids with an active, youthful lifestyle. | |
The accompanying Consolidated Financial Statements include the historical financial statements of, and transactions applicable to, the Company and reflect its assets, liabilities, results of operations and cash flows. | |
The Company’s fiscal year ends on the Saturday closest to January 31. Fiscal years are designated in the consolidated financial statements and notes by the calendar year in which the fiscal year commences. All references herein to “Fiscal 2014” represent the 52-week fiscal year that will end on January 31, 2015, and to “Fiscal 2013” represent the 52-week fiscal year that ended February 1, 2014. | |
The Consolidated Financial Statements as of May 3, 2014 and for the thirteen-week periods ended May 3, 2014 and May 4, 2013 are unaudited and are presented pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, these Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto contained in A&F’s Annual Report on Form 10-K for Fiscal 2013 filed with the SEC on March 31, 2014. The February 1, 2014 consolidated balance sheet data were derived from audited consolidated financial statements, but do not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). | |
In the opinion of management, the accompanying Consolidated Financial Statements reflect all adjustments (which are of a normal recurring nature) necessary to state fairly, in all material respects, the financial position and results of operations and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for Fiscal 2014. | |
The thirteen-week periods ended May 3, 2014 and May 4, 2013 include the correction of certain errors relating to prior years. The amounts recorded out-of-period include an increase in the pre-tax loss of $1.5 million for the thirteen-week period ended May 3, 2014 and a reduction of pre-tax loss of $2.5 million and an unrelated tax charge of $1.2 million for the thirteen-week period ended May 4, 2013. The Company does not believe these corrections were material to any current or prior interim or annual periods that were affected. | |
The Consolidated Financial Statements as of May 3, 2014 and for the thirteen-week periods ended May 3, 2014 and May 4, 2013 included herein have been reviewed by PricewaterhouseCoopers LLP, an independent registered public accounting firm, and the report of such firm follows the Notes to Consolidated Financial Statements. | |
PricewaterhouseCoopers LLP is not subject to the liability provisions of Section 11 of the Securities Act of 1933 (the “Act”) for their report on the consolidated financial statements because their report is not a “report” or a “part” of a registration statement prepared or certified by PricewaterhouseCoopers LLP within the meaning of Sections 7 and 11 of the Act. |
Segment_Reporting
Segment Reporting | 3 Months Ended | |||||||||||||||||||||||
3-May-14 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
SEGMENT REPORTING | ' | |||||||||||||||||||||||
SEGMENT REPORTING | ||||||||||||||||||||||||
The Company determines its segments on the same basis that it uses to allocate resources and assess performance. All of the Company’s segments sell a similar group of products—casual sportswear apparel, personal care products and accessories for men, women and kids and bras, underwear and sleepwear for girls. The Company has three reportable segments: U.S. Stores, International Stores, and Direct-to-Consumer. Corporate functions, interest income and expense, and other income and expense are evaluated on a consolidated basis and are not allocated to the Company’s segments, and therefore are included in Other. | ||||||||||||||||||||||||
The U.S. Stores reportable segment includes the results of store operations in the United States and Puerto Rico. The International Stores reportable segment includes the results of store operations in Canada, Europe, Asia and Australia. The Direct-to-Consumer reportable segment includes the results of operations directly associated with on-line operations, both U.S. and international. | ||||||||||||||||||||||||
Operating income is the primary measure of profit the Company uses to make decisions regarding the allocation of resources to its segments. For the U.S. Stores and the International Stores reportable segments, operating income is defined as aggregate income directly attributable to individual stores on a four-wall basis plus sell-off of excess merchandise to authorized third-party resellers. Four-wall operating income includes: net sales, cost of merchandise, selling payroll and related costs, rent, utilities, depreciation, repairs and maintenance, supplies and packaging and other store sales-related expenses including credit card and bank fees and indirect taxes. Operating income also reflects pre-opening charges related to stores not yet in operation. For the Direct-to-Consumer reportable segment, operating income is defined as aggregate income attributable to the direct-to-consumer business: net sales, shipping and handling revenue, call center costs, fulfillment and shipping expense, charge card fees and direct-to-consumer operations management and support expenses. The U.S. Stores, the International Stores and the Direct-to-Consumer segments exclude marketing, general and administrative expense; store management and support functions such as regional and district management and other functions not dedicated to an individual store, as well as distribution center costs. All costs excluded from the three reportable segments are included in Other. | ||||||||||||||||||||||||
The following table provides the Company’s segment information for the thirteen-week periods ended May 3, 2014 and May 4, 2013. | ||||||||||||||||||||||||
U.S. Stores | International | Direct-to- | Segment Total | Other(1) | Total | |||||||||||||||||||
Stores | Consumer | |||||||||||||||||||||||
Operations | ||||||||||||||||||||||||
(in thousands): | ||||||||||||||||||||||||
Thirteen Weeks Ended May 3, 2014 | ||||||||||||||||||||||||
Net Sales | $ | 399,148 | $ | 252,882 | $ | 170,398 | $ | 822,428 | $ | — | $ | 822,428 | ||||||||||||
Operating Income (Loss) (2) | 31,284 | 42,723 | 56,232 | 130,239 | (161,745 | ) | (31,506 | ) | ||||||||||||||||
Thirteen Weeks Ended May 4, 2013 | ||||||||||||||||||||||||
Net Sales | $ | 448,616 | $ | 257,434 | $ | 132,719 | $ | 838,769 | $ | — | $ | 838,769 | ||||||||||||
Operating Income (Loss) | 39,821 | 53,533 | 56,183 | 149,537 | (163,458 | ) | (13,921 | ) | ||||||||||||||||
(1) | Includes corporate functions not dedicated to an individual store or direct-to-consumer operations such as Design, Merchandising, Sourcing, Planning, Allocation, Store Management and Support, Marketing, Distribution Center Operations, Information Technology, Real Estate, Finance, Legal, Human Resources and other corporate overhead. | |||||||||||||||||||||||
(2) | Includes charges related to the restructuring of the Gilly Hicks brand, the Company's profit improvement initiative and legal, advisory and other charges related to certain corporate governance matters of which $6.9 million is included for International Stores, $9.2 million is included for Other and $0.5 million of income related to the true-up of Gilly Hicks estimated liabilities, net of additional charges, is included in U.S. Stores for the thirteen-week period ended May 3, 2014. | |||||||||||||||||||||||
Net Sales: | ||||||||||||||||||||||||
Net sales includes net merchandise sales through stores and direct-to-consumer operations, including shipping and handling revenue. Direct-to-consumer net sales are reported by geographic area based on the location of the customer. | ||||||||||||||||||||||||
Brand Information | ||||||||||||||||||||||||
Net Sales by brand were as follows: | ||||||||||||||||||||||||
Thirteen Weeks Ended | ||||||||||||||||||||||||
(in thousands): | 3-May-14 | 4-May-13 | ||||||||||||||||||||||
Abercrombie & Fitch | $ | 317,818 | $ | 324,748 | ||||||||||||||||||||
abercrombie | 68,460 | 73,223 | ||||||||||||||||||||||
Hollister | 421,634 | 421,233 | ||||||||||||||||||||||
Gilly Hicks | 14,516 | 19,565 | ||||||||||||||||||||||
Total | $ | 822,428 | $ | 838,769 | ||||||||||||||||||||
Geographic Information | ||||||||||||||||||||||||
Net Sales by geographic area were as follows: | ||||||||||||||||||||||||
Thirteen Weeks Ended | ||||||||||||||||||||||||
(in thousands): | 3-May-14 | 4-May-13 | ||||||||||||||||||||||
United States | $ | 504,396 | $ | 534,897 | ||||||||||||||||||||
Europe | 235,614 | 236,654 | ||||||||||||||||||||||
Other | 82,418 | 67,218 | ||||||||||||||||||||||
Total | $ | 822,428 | $ | 838,769 | ||||||||||||||||||||
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | |||||||||||||||
3-May-14 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
SHARE-BASED COMPENSATION | ' | |||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||||
The Company issues stock appreciation rights and restricted stock units, including those with service, performance and market vesting conditions. The Company recognized share-based compensation expense of $5.3 million for the thirteen-week period ended May 3, 2014, and $13.4 million for the thirteen-week period ended May 4, 2013. The Company also recognized $2.0 million in tax benefits related to share-based compensation expense for the thirteen-week period ended May 3, 2014, and $5.0 million for the thirteen-week period ended May 4, 2013. | ||||||||||||||||
Stock Options | ||||||||||||||||
The Company did not grant any stock options during the thirteen-week period ended May 3, 2014 or the thirteen-week period ended May 4, 2013. | ||||||||||||||||
Below is a summary of stock option activity for the thirteen weeks ended May 3, 2014: | ||||||||||||||||
Number of | Weighted-Average | Aggregate | Weighted-Average | |||||||||||||
Underlying | Exercise Price | Intrinsic Value | Remaining | |||||||||||||
Shares | Contractual Life | |||||||||||||||
Outstanding at February 1, 2014 | 532,400 | $ | 65.37 | |||||||||||||
Granted | — | — | ||||||||||||||
Exercised | (5,000 | ) | 31.07 | |||||||||||||
Forfeited or expired | (1,200 | ) | 78.65 | |||||||||||||
Outstanding at May 3, 2014 | 526,200 | $ | 65.66 | $ | 1,093,780 | 3.1 | ||||||||||
Stock options exercisable at May 3, 2014 | 526,200 | $ | 65.66 | $ | 1,093,780 | 3.1 | ||||||||||
The total intrinsic value of stock options which were exercised during the thirteen-week periods ended May 3, 2014 and May 4, 2013 was insignificant. | ||||||||||||||||
The grant date fair value of stock options which vested during the thirteen-week periods ended May 3, 2014 and May 4, 2013 was insignificant. | ||||||||||||||||
As of May 3, 2014, all compensation cost related to stock options had been recognized. | ||||||||||||||||
Stock Appreciation Rights | ||||||||||||||||
The following table summarizes stock appreciation rights activity for the thirteen weeks ended May 3, 2014: | ||||||||||||||||
Number of | Weighted-Average | Aggregate | Weighted-Average | |||||||||||||
Underlying | Exercise Price | Intrinsic Value | Remaining | |||||||||||||
Shares | Contractual Life | |||||||||||||||
Outstanding at February 1, 2014 | 8,982,959 | $ | 40.76 | |||||||||||||
Granted | 301,500 | 39.1 | ||||||||||||||
Exercised | (15,125 | ) | 30.83 | |||||||||||||
Forfeited or expired | (8,100 | ) | 49.02 | |||||||||||||
Outstanding at May 3, 2014 | 9,261,234 | $ | 40.71 | $ | 39,254,021 | 3.4 | ||||||||||
Stock appreciation rights exercisable at May 3, 2014 | 8,480,209 | $ | 40.3 | $ | 39,144,076 | 2.9 | ||||||||||
Stock appreciation rights expected to become exercisable in the future as of May 3, 2014 | 688,381 | $ | 45.71 | $ | 84,674 | 8.8 | ||||||||||
The Company estimates the fair value of stock appreciation rights using the Black-Scholes option-pricing model. The weighted-average assumptions used in the Black-Scholes option-pricing model for stock appreciation rights granted during the thirteen-week periods ended May 3, 2014 and May 4, 2013, were as follows: | ||||||||||||||||
Executive Officers other than the CEO | All Other Associates | |||||||||||||||
3-May-14 | 4-May-13 | 3-May-14 | 4-May-13 | |||||||||||||
Grant date market price | $ | 38.5 | $ | 45.69 | $ | 38.63 | $ | 45.72 | ||||||||
Exercise price | $ | 39.64 | $ | 45.69 | $ | 38.84 | $ | 45.72 | ||||||||
Fair value | $ | 14.4 | $ | 19.96 | $ | 13.58 | $ | 16.95 | ||||||||
Assumptions: | ||||||||||||||||
Price volatility | 50 | % | 61 | % | 50 | % | 54 | % | ||||||||
Expected term (years) | 4.9 | 4.7 | 4.1 | 4.1 | ||||||||||||
Risk-free interest rate | 1.8 | % | 0.7 | % | 1.4 | % | 0.6 | % | ||||||||
Dividend yield | 1.9 | % | 1.8 | % | 1.9 | % | 1.8 | % | ||||||||
Compensation expense for stock appreciation rights is recognized on a straight-line basis over the awards’ requisite service period, net of forfeitures. As of May 3, 2014, there was $11.7 million of total unrecognized compensation cost, net of estimated forfeitures, related to stock appreciation rights. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 17 months. | ||||||||||||||||
The total intrinsic value of stock appreciation rights exercised during the thirteen-week period ended May 3, 2014 was insignificant, while the total intrinsic value of stock appreciation rights exercised during the thirteen-week period ended May 4, 2013 was $1.4 million. The grant date fair value of stock appreciation rights which vested during the thirteen-week periods ended May 3, 2014 and May 4, 2013 was $7.2 million and $19.7 million, respectively. | ||||||||||||||||
Restricted Stock Units | ||||||||||||||||
The following table summarizes activity for restricted stock units with performance and/or service vesting conditions for the thirteen weeks ended May 3, 2014: | ||||||||||||||||
Number of Underlying | Weighted-Average | |||||||||||||||
Shares | Grant Date | |||||||||||||||
Fair Value | ||||||||||||||||
Unvested at February 1, 2014 | 1,426,579 | $ | 46 | |||||||||||||
Granted (1) | 470,178 | 34.12 | ||||||||||||||
Vested | (305,188 | ) | 48.55 | |||||||||||||
Forfeited | (58,400 | ) | 45.98 | |||||||||||||
Unvested at May 3, 2014 | 1,533,169 | $ | 41.21 | |||||||||||||
(1) | Number of shares granted includes 158,922 shares related to the grant of restricted stock units with performance vesting conditions in Fiscal 2014. This reflects the target amount granted; however, the number of awards that ultimately are earned will vary from 0% - 200% of target depending on the level of achievement of performance criteria. | |||||||||||||||
The fair value of restricted stock units with performance and/or service vesting conditions is calculated using the market price of the underlying Common Stock on the date of grant reduced for anticipated dividend payments on unvested shares. In determining the fair value, the Company does not take into account any performance-based vesting requirements. The performance-based vesting requirements are taken into account in determining the number of awards expected to vest and the related expense. | ||||||||||||||||
Restricted stock units with only service vesting conditions and restricted stock units with fixed performance vesting thresholds without graded vesting features are expensed on a straight-line basis over the total requisite service period, net of forfeitures. Restricted stock units with annually determined vesting thresholds are expensed on a graded vesting basis, net of forfeitures. As of May 3, 2014, there was $38.3 million of total unrecognized compensation cost, net of estimated forfeitures, related to non-vested restricted stock units with performance and/or service conditions. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 17 months. | ||||||||||||||||
The total fair value of restricted stock units with service and performance vesting conditions granted during the thirteen-week periods ended May 3, 2014 and May 4, 2013 was $16.0 million and $24.3 million, respectively. The total grant date fair value of restricted stock units with service and performance vesting conditions which vested during the thirteen-week periods ended May 3, 2014 and May 4, 2013 was $14.8 million and $12.5 million, respectively. | ||||||||||||||||
The following table summarizes activity for restricted stock units with market vesting conditions for the thirteen weeks ended May 3, 2014: | ||||||||||||||||
Number of Underlying | Weighted-Average | |||||||||||||||
Shares | Grant Date | |||||||||||||||
Fair Value | ||||||||||||||||
Unvested at February 1, 2014 | — | $ | — | |||||||||||||
Granted (1) | 79,458 | 45.02 | ||||||||||||||
Vested | — | — | ||||||||||||||
Forfeited | — | — | ||||||||||||||
Unvested at May 3, 2014 | 79,458 | $ | 45.02 | |||||||||||||
(1) | Number of shares granted reflects the target amount granted; however, the number of awards that ultimately are earned will vary from 0% - 200% of target depending on market performance. | |||||||||||||||
The fair value of restricted stock units with market vesting conditions is calculated using a Monte Carlo simulation. The weighted-average assumptions used in the Monte Carlo simulation during the thirteen-week periods ended May 3, 2014 , were as follows: | ||||||||||||||||
Chief Executive Officer | Executives other than CEO | |||||||||||||||
Grant date market price | $ | 38.5 | $ | 38.5 | ||||||||||||
Fair value | $ | 43.96 | $ | 46.86 | ||||||||||||
Assumptions: | ||||||||||||||||
Price volatility | 50 | % | 50 | % | ||||||||||||
Expected term (years) | 2.8 | 2.8 | ||||||||||||||
Risk-free interest rate | 0.8 | % | 0.8 | % | ||||||||||||
Dividend yield | 2.1 | % | 2.1 | % | ||||||||||||
Restricted stock units with market vesting conditions without graded vesting features are expensed on a straight-line basis over the requisite service period, net of forfeitures. As of May 3, 2014, there was $3.6 million of total unrecognized compensation cost, net of estimated forfeitures, related to non-vested restricted stock units with market vesting conditions. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 14 months. | ||||||||||||||||
The total fair value of restricted stock units with market vesting conditions granted during the thirteen-week period ended May 3, 2014 was $3.6 million. | ||||||||||||||||
No restricted stock units with market vesting conditions vested during the thirteen-week period ended May 3, 2014. |
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 3 Months Ended | |||||
3-May-14 | ||||||
Earnings Per Share [Abstract] | ' | |||||
NET INCOME (LOSS) PER SHARE | ' | |||||
NET INCOME (LOSS) PER SHARE | ||||||
Net income (loss) per basic and diluted share is computed based on the weighted-average number of outstanding shares of Common Stock. | ||||||
Weighted-Average Shares Outstanding and Anti-Dilutive Shares (in thousands): | ||||||
Thirteen Weeks Ended | ||||||
3-May-14 | 4-May-13 | |||||
Shares of Common Stock issued | 103,300 | 103,300 | ||||
Treasury shares | (28,817 | ) | (24,976 | ) | ||
Weighted-Average—Basic Shares | 74,483 | 78,324 | ||||
Dilutive effect of share-based compensation awards | — | — | ||||
Weighted-Average—Diluted Shares | 74,483 | 78,324 | ||||
Anti-Dilutive Shares (1) | 11,400 | 11,404 | ||||
(1) | Reflects the number of shares subject to outstanding share-based compensation awards but excluded from the computation of net (loss) income per diluted share because the impact would have been anti-dilutive. | |||||
On February 27, 2014, A&F entered into an Accelerated Share Repurchase Agreement ("ASR Agreement") with a financial institution in order to repurchase shares of A&F's Common Stock during the term of the ASR Agreement which extended through April 2014. Pursuant to the ASR Agreement, A&F paid $150 million and, in exchange, 3.1 million shares were initially delivered to the Company and accounted for as a reduction to stockholders' equity. The transaction contemplated by the ASR Agreement was completed during the quarter, at which time the Company received 0.7 million additional shares. The total number of shares delivered upon settlement of the ASR Agreement was based upon the volume weighted average price of the Company’s Common Stock over the term of the ASR Agreement, less an agreed discount. |
Cash_and_Equivalents
Cash and Equivalents | 3 Months Ended | |||||||
3-May-14 | ||||||||
Cash and Cash Equivalents [Abstract] | ' | |||||||
CASH AND EQUIVALENTS | ' | |||||||
CASH AND EQUIVALENTS | ||||||||
Cash and equivalents consisted of (in thousands): | ||||||||
May 3, 2014 | February 1, 2014 | |||||||
Cash and equivalents: | ||||||||
Cash | $ | 357,122 | $ | 452,116 | ||||
Cash equivalents | — | 148,000 | ||||||
Total cash and equivalents | $ | 357,122 | $ | 600,116 | ||||
Cash and equivalents include amounts on deposit with financial institutions, United States treasury bills, and other investments, primarily held in money market accounts, with original maturities of less than three months. Any cash that is legally restricted from use is recorded in Other Assets on the Consolidated Balance Sheets. The restricted cash balance was $17.7 million on May 3, 2014 and $26.7 million on February 1, 2014. Restricted cash includes various cash deposits with international banks that are used as collateral for customary non-debt banking commitments and deposits into trust accounts to conform to standard insurance security requirements. |
Rabbi_Trust_Assets
Rabbi Trust Assets | 3 Months Ended | |||||
3-May-14 | ||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||
RABBI TRUST ASSETS | ' | |||||
RABBI TRUST ASSETS | ||||||
Investments consisted of (in thousands): | ||||||
May 3, 2014 | February 1, 2014 | |||||
Rabbi Trust assets: | ||||||
Money market funds | 24 | 24 | ||||
Trust-owned life insurance policies (at cash surrender value) | 91,005 | 90,198 | ||||
Total Rabbi Trust assets | 91,029 | 90,222 | ||||
The irrevocable rabbi trust (the “Rabbi Trust”) is intended to be used as a source of funds to match respective funding obligations to participants in the Abercrombie & Fitch Co. Nonqualified Savings and Supplemental Retirement Plan I, the Abercrombie & Fitch Co. Nonqualified Savings and Supplemental Retirement Plan II and the Chief Executive Officer Supplemental Executive Retirement Plan. The Rabbi Trust assets primarily consist of trust-owned life insurance policies which are recorded at cash surrender value. The change in cash surrender value of the trust-owned life insurance policies held in the Rabbi Trust resulted in realized gains of $0.8 million for each of the thirteen-week periods ended May 3, 2014 and May 4, 2013, recorded in Interest Expense, Net on the Consolidated Statements of Operations and Comprehensive Income (Loss). | ||||||
The Rabbi Trust assets are included in Other Assets on the Consolidated Balance Sheets and are restricted to their use as noted above. |
Fair_Value
Fair Value | 3 Months Ended | |||||||||||||||
3-May-14 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE | ' | |||||||||||||||
FAIR VALUE | ||||||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are prioritized based on a three-level hierarchy. The three levels of inputs to measure fair value are as follows: | ||||||||||||||||
• | Level 1—inputs are unadjusted quoted prices for identical assets or liabilities that are available in active markets. | |||||||||||||||
• | Level 2—inputs are other than quoted market prices included within Level 1 that are observable for assets or liabilities, directly or indirectly. | |||||||||||||||
• | Level 3—inputs to the valuation methodology are unobservable. | |||||||||||||||
The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. The three levels of the hierarchy and the distribution of the Company’s assets and liabilities, measured at fair value, within it were as follows: | ||||||||||||||||
Assets and Liabilities at Fair Value as of May 3, 2014 | ||||||||||||||||
(in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
ASSETS: | ||||||||||||||||
Money market funds | $ | 24 | $ | — | $ | — | $ | 24 | ||||||||
Derivative financial instruments | — | 339 | — | 339 | ||||||||||||
Total assets measured at fair value | $ | 24 | $ | 339 | $ | — | $ | 363 | ||||||||
LIABILITIES: | ||||||||||||||||
Derivative financial instruments | — | 5,325 | — | 5,325 | ||||||||||||
Total liabilities measured at fair value | $ | — | $ | 5,325 | $ | — | $ | 5,325 | ||||||||
Assets and Liabilities at Fair Value as of February 1, 2014 | ||||||||||||||||
(in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
ASSETS: | ||||||||||||||||
Money market funds (1) | $ | 148,024 | $ | — | $ | — | $ | 148,024 | ||||||||
Derivative financial instruments | — | 969 | — | 969 | ||||||||||||
Total assets measured at fair value | $ | 148,024 | $ | 969 | $ | — | $ | 148,993 | ||||||||
LIABILITIES: | ||||||||||||||||
Derivative financial instruments | — | 2,555 | — | 2,555 | ||||||||||||
Total liabilities measured at fair value | $ | — | $ | 2,555 | $ | — | $ | 2,555 | ||||||||
(1) Includes $148.0 million of money market funds included in Cash and Equivalents. | ||||||||||||||||
The level 2 assets and liabilities consist of derivative financial instruments, primarily forward foreign currency exchange contracts. The fair value of forward foreign currency exchange contracts is determined by using quoted market prices of the same or similar instruments, adjusted for counterparty risk. | ||||||||||||||||
Disclosures of Fair Value of Other Assets and Liabilities: | ||||||||||||||||
The Company’s borrowings under its Term Loan Agreement are carried at historical cost in the accompanying Consolidated Balance Sheets. For disclosure purposes, the Company estimates the fair value of borrowings under the Term Loan Agreement using discounted cash flow analysis based on market rates obtained from independent third parties for similar types of debt. The inputs used to value the borrowings under the Term Loan Agreement are considered to be Level 2 instruments. The carrying amount of borrowings outstanding under the Term Loan Agreement was approximately $131.3 million and $135.0 million, as of May 3, 2014 and February 1, 2014, respectively. The fair value of borrowings outstanding under the Term Loan Agreement was approximately $131.3 million and $135.0 million, as of May 3, 2014 and February 1, 2014, respectively. See Note 12, “BORROWINGS,” for further discussion on the Amended and Restated Credit Agreement and the Term Loan Agreement. |
Inventories
Inventories | 3 Months Ended |
3-May-14 | |
Inventory Disclosure [Abstract] | ' |
INVENTORIES | ' |
INVENTORIES | |
Inventories are principally valued at the lower of cost or market on a weighted-average cost basis. The Company writes down inventory through a lower of cost or market adjustment, the impact of which is reflected in Cost of Goods Sold on the Consolidated Statements of Operations and Comprehensive Income (Loss). This adjustment is based on management's judgment regarding future demand and market conditions and analysis of historical experience. The lower of cost or market reserve for inventory was $15.5 million and $22.1 million at May 3, 2014 and February 1, 2014, respectively. | |
Additionally, as part of inventory valuation, inventory shrinkage estimates based on historical trends from actual physical inventories are made each period that reduce the inventory value for lost or stolen items. The Company performs physical inventories on a periodic basis and adjusts the shrink reserve accordingly. The shrink reserve was $9.3 million and $13.6 million at May 3, 2014 and February 1, 2014, respectively. | |
The inventory balance, net of reserves, was $486.0 million and $530.2 million at May 3, 2014 and February 1, 2014, respectively. These balances included inventory in transit balances of $48.1 million and $76.4 million at May 3, 2014 and February 1, 2014, respectively. Inventory in transit is merchandise considered to be owned by Abercrombie & Fitch that has not yet been received at an Abercrombie & Fitch distribution center. |
Property_and_Equipment_Net
Property and Equipment, Net | 3 Months Ended | |||||||
3-May-14 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
PROPERTY AND EQUIPMENT, NET | ' | |||||||
PROPERTY AND EQUIPMENT, NET | ||||||||
Property and equipment, net consisted of (in thousands): | ||||||||
May 3, 2014 | February 1, 2014 | |||||||
Property and equipment, at cost | $ | 2,888,275 | $ | 2,885,712 | ||||
Accumulated depreciation and amortization | (1,766,498 | ) | (1,754,371 | ) | ||||
Property and equipment, net | $ | 1,121,777 | $ | 1,131,341 | ||||
Long-lived assets, primarily comprised of property and equipment, are reviewed periodically for impairment or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Factors used in the evaluation include, but are not limited to, management’s plans for future operations, recent operating results, and projected cash flows. | ||||||||
In accordance with Accounting Standards Codification 820-10, “Fair Value Measurements and Disclosures,” store-related assets are considered level 3 assets in the fair value hierarchy. Fair values are determined at the store level, primarily using a discounted cash flow model. The estimation of future cash flows from operating activities requires significant estimates of factors that include future sales, gross margin performance and operating expenses. In instances where the discounted cash flow analysis indicates a negative value at the store level, and impairment charges are taken, the market exit price based on historical experience is used to determine the fair value by asset type. Significant unobservable inputs of store-related assets will be disclosed when required due to impairment. There were no impairments during the thirteen-week periods ended May 3, 2014 and May 4, 2013. | ||||||||
In certain lease arrangements, the Company is involved in the construction of the building. If it is determined that the Company has substantially all of the risks of ownership during construction of the leased property and therefore is deemed to be the owner of the construction project, the Company records an asset for the amount of the total project costs and an amount related to the value attributed to the pre-existing leased building in Property and Equipment, Net and the related financing obligation in Leasehold Financing Obligations on the Consolidated Balance Sheets. Once construction is complete, if it is determined that the asset does not qualify for sale-leaseback accounting treatment, the Company continues to amortize the obligation over the lease term and depreciates the asset over its useful life. The Company had $53.0 million and $52.3 million of construction project assets in Property and Equipment, Net at May 3, 2014 and February 1, 2014, respectively. |
Deferred_Lease_Credits
Deferred Lease Credits | 3 Months Ended | |||||||
3-May-14 | ||||||||
Deferred Lease Credits [Abstract] | ' | |||||||
DEFERRED LEASE CREDITS | ' | |||||||
DEFERRED LEASE CREDITS | ||||||||
Deferred lease credits are derived from payments received from landlords to wholly or partially offset store construction costs and are classified between current and long-term liabilities. The amounts, which are amortized over the respective terms of the related leases, consisted of the following (in thousands): | ||||||||
May 3, 2014 | February 1, 2014 | |||||||
Deferred lease credits | $ | 534,799 | $ | 543,040 | ||||
Amortized deferred lease credits | (364,442 | ) | (366,076 | ) | ||||
Total deferred lease credits, net | $ | 170,357 | $ | 176,964 | ||||
Income_Taxes
Income Taxes | 3 Months Ended |
3-May-14 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
The provision for income taxes is based on the current estimate of the annual effective tax rate adjusted to reflect the impact of discrete items incurred during the period. The effective tax rates for the thirteen weeks ended May 3, 2014 and May 4, 2013 were 29.3% and 53.7%, respectively. The Fiscal 2013 first quarter provision reflects a benefit resulting from the settlement of certain tax audits. | |
Income taxes paid directly to taxing authorities, net of refunds received, for the thirteen weeks ended May 3, 2014 and May 4, 2013 were approximately $57.1 million and $101.7 million, respectively. These amounts include payments and refunds for income and withholding taxes incurred related to the current year and prior years. |
Borrowings
Borrowings | 3 Months Ended |
3-May-14 | |
Debt Disclosure [Abstract] | ' |
BORROWINGS | ' |
BORROWINGS | |
On July 28, 2011, the Company entered into an unsecured Amended and Restated Credit Agreement, as amended by Amendment No. 1, made as of February 24, 2012, Amendment No. 2, made as of January 23, 2013, and Amendment No. 3, made as of November 4, 2013 (the “Amended and Restated Credit Agreement”) under which up to $350 million is available. As stated in the Amended and Restated Credit Agreement, the primary purposes of the agreement are for trade and stand-by letters of credit in the ordinary course of business, as well as to fund working capital, capital expenditures, acquisitions and investments, and other general corporate purposes, including repurchases of A&F's Common Stock. | |
The Amended and Restated Credit Agreement has several borrowing options, including interest rates that are based on: (i) a defined Base Rate, plus a margin based on the applicable Leverage Ratio, payable quarterly; (ii) an Adjusted Eurodollar Rate (as defined in the Amended and Restated Credit Agreement) plus a margin based on the applicable Leverage Ratio, payable at the end of the applicable interest period for the borrowing and, for interest periods in excess of three months, on the date that is three months after the commencement of the interest period; or (iii) an Adjusted Foreign Currency Rate (as defined in the Amended and Restated Credit Agreement) plus a margin based on the applicable Leverage Ratio, payable at the end of the applicable interest period for the borrowing and, for interest periods in excess of three months, on the date that is three months after the commencement of the interest period. The Base Rate represents a rate per annum equal to the highest of (a) PNC Bank, National Association’s then publicly announced prime rate, (b) the Federal Funds Open Rate (as defined in the Amended and Restated Credit Agreement) as then in effect plus 1/2 of 1% or (c) the Daily Adjusted Eurodollar Rate (as defined in the Amended and Restated Credit Agreement) as then in effect plus 1%. | |
The facility fees payable under the Amended and Restated Credit Agreement are based on the Company’s Leverage Ratio (i.e., the ratio, on a consolidated basis, of (a) the sum of total debt (excluding specified permitted foreign bank guarantees and trade letters of credit) plus 600% of forward minimum rent commitments to (b) consolidated earnings, as adjusted, before interest, taxes, depreciation, amortization and rent (“Consolidated EBITDAR”) for the trailing four-consecutive-fiscal-quarter periods. The facility fees accrue at a rate of 0.125% to 0.30% per annum based on the Leverage Ratio for the most recent determination date. The Amended and Restated Credit Agreement requires that the Leverage Ratio not be greater than 3.75 to 1.00 at the end of each testing period. Prior to Amendment No. 3, the Amended and Restated Credit Agreement also required that the “Coverage Ratio” for A&F and its subsidiaries on a consolidated basis of (i) Consolidated EBITDAR for the trailing four-consecutive-fiscal-quarter period to (ii) the sum of, without duplication, (x) net interest expense for such period, (y) scheduled payments of long-term debt due within twelve months of the date of determination and (z) the sum of minimum rent and contingent store rent, not be less than 1.75 to 1.00. Effective November 4, 2013, the "Coverage Ratio" requirement was amended as discussed more fully below. | |
The Amended and Restated Credit Agreement will mature on July 27, 2016. The Company had no trade letters of credit outstanding at May 3, 2014 and February 1, 2014. Stand-by letters of credit outstanding under the Amended and Restated Credit Agreement were $9.5 million as of May 3, 2014 and insignificant as of February 1, 2014. | |
As of May 3, 2014 and February 1, 2014, the Company had no borrowings outstanding under the Amended and Restated Credit Agreement. | |
On February 24, 2012, the Company entered into a $300 million Term Loan Agreement. On January 23, 2013, the Company amended both the Term Loan Agreement (via Amendment No. 1) (the "Term Loan Agreement") and the Amended and Restated Credit Agreement (via Amendment No. 2). The required Coverage Ratio in both agreements was lowered to 1.75 to 1.00 and the availability under the Term Loan Agreement was lowered to $150 million. On February 21, 2013, the Company elected to draw down the full $150 million available under the Term Loan Agreement. Repayments of $3.75 million are due on the last day of each quarter beginning May 2013, with the final repayment of $90.0 million due upon maturity at February 23, 2017. The Term Loan Agreement provides two borrowing options: (i) a defined Base Rate, plus a margin based on the applicable Leverage Ratio, payable quarterly; and (ii) an Adjusted Eurodollar Rate (as defined in the Term Loan Agreement) plus a margin based on the applicable Leverage Ratio, payable at the end of the applicable interest period for the borrowing and, for interest periods in excess of three months, on the date that is three months after the commencement of the interest period. Interest on borrowings may be determined under several alternative methods including LIBOR plus a margin based upon the Company’s Leverage Ratio, as defined above. | |
On November 4, 2013, the Company entered into an Amendment No. 3 to its existing Amended and Restated Credit Agreement and an Amendment No. 2 to its existing Term Loan Agreement. The amendments allow the Company to add back to the calculation of consolidated EBITDAR, for purposes of determining the Company's "Coverage Ratio" and the Company's "Leverage Ratio", up to $60.0 million of non-recurring cash charges associated with the Gilly Hicks restructuring. In addition, the required minimum "Coverage Ratio" was reduced initially for the testing period ended February 1, 2014 and each of the testing periods during the fiscal year ending January 31, 2015, to a level of 1.60 to 1.00, with such level gradually increasing to 1.75 to 1.00, by the testing period ending October 31, 2015 and thereafter. | |
The Company was in compliance with the applicable ratio requirements and other covenants under both agreements at May 3, 2014. | |
The Company had $131.3 million and $135.0 million in borrowings outstanding under the Term Loan Agreement as of May 3, 2014 and February 1, 2014, respectively. The weighted average interest rate for the thirteen-week periods ended May 3, 2014 and May 4, 2013 was 2.07% and 1.85%, respectively. | |
Total interest expense and fees associated with borrowing agreements were $1.3 million and $1.0 million for the thirteen-week periods ended May 3, 2014 and May 4, 2013, respectively. | |
The terms of both the Amended and Restated Credit Agreement and the Term Loan Agreement include customary events of default such as payment defaults, cross-defaults to other material indebtedness, undischarged material judgments, bankruptcy and insolvency, the occurrence of a defined change in control, or the failure to observe the negative covenants and other covenants related to the operation and conduct of the business of A&F and its subsidiaries. Upon an event of default: (i) the lenders under the Amended and Restated Credit Agreement will not be obligated to make loans or other extensions of credit and may, among other things, terminate their commitments to the Company; and (ii) the lenders under the Amended and Restated Credit Agreement and the lenders under the Term Loan Agreement may declare any then outstanding loans due and payable immediately. |
Leasehold_Financing_Obligation
Leasehold Financing Obligations | 3 Months Ended |
3-May-14 | |
Leasehold Financing Obligations [Abstract] | ' |
LEASEHOLD FINANCING OBLIGATIONS | ' |
LEASEHOLD FINANCING OBLIGATIONS | |
As of May 3, 2014 and February 1, 2014, the Company had $61.7 million and $60.7 million, respectively, of long-term liabilities related to leasehold financing obligations. In certain lease arrangements, the Company is deemed to be involved in the construction of the building. If it is determined that the Company has substantially all of the risks of ownership during construction of the leased property and therefore is deemed to be the owner of the construction project, the Company records an asset for the amount of the total project costs and an amount related to the value attributed to the pre-existing leased building in Property and Equipment, Net and the related financing obligation in Leasehold Financing Obligations on the Consolidated Balance Sheets. Once construction is complete, if it is determined that the asset does not qualify for sale-leaseback accounting treatment, the Company continues to amortize the obligation over the lease term and depreciates the asset over its useful life. The Company does not report rent expense for the portion of the rent payment determined to be related to the assets which are determined to be owned for accounting purposes. Rather, that portion of the rental payments under the lease is recognized as a reduction of the financing obligation and interest expense. | |
Total interest expense related to landlord financing obligations was $1.6 million and $1.7 million for the thirteen-week periods ended May 3, 2014 and May 4, 2013, respectively. |
Derivatives
Derivatives | 3 Months Ended | |||||||||||||||||||||||||||
3-May-14 | ||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
DERIVATIVES | ' | |||||||||||||||||||||||||||
DERIVATIVES | ||||||||||||||||||||||||||||
The Company is exposed to risks associated with changes in foreign currency exchange rates and uses derivatives, primarily forward contracts, to manage the financial impacts of these exposures. The Company does not use forward contracts to engage in currency speculation and does not enter into derivative financial instruments for trading purposes. | ||||||||||||||||||||||||||||
In order to qualify for hedge accounting treatment, a derivative must be considered highly effective at offsetting changes in either the hedged item’s cash flows or fair value. Additionally, the hedge relationship must be documented to include the risk management objective and strategy, the hedging instrument, the hedged item, the risk exposure, and how hedge effectiveness will be assessed prospectively and retrospectively. The extent to which a hedging instrument has been, and is expected to continue to be, effective at offsetting changes in fair value or cash flows is assessed and documented at least quarterly. Any hedge ineffectiveness is reported in current period earnings and hedge accounting is discontinued if it is determined that the derivative is not highly effective. | ||||||||||||||||||||||||||||
For derivatives that either do not qualify for hedge accounting or are not designated as hedges, all changes in the fair value of the derivative are recognized in earnings. For qualifying cash flow hedges, the effective portion of the change in the fair value of the derivative is recorded as a component of Other Comprehensive Income (Loss) (“OCI”) and recognized in earnings when the hedged cash flows affect earnings. The ineffective portion of the derivative gain or loss, as well as changes in the fair value of the derivative’s time value is recognized in current period earnings. The effectiveness of the hedge is assessed based on changes in the fair value attributable to changes in spot prices. The changes in the fair value of the derivative contract related to the changes in the difference between the spot price and the forward price are excluded from the assessment of hedge effectiveness and are also recognized in current period earnings. If the cash flow hedge relationship is terminated, the derivative gains or losses that are deferred in OCI will be recognized in earnings when the hedged cash flows occur. However, for cash flow hedges that are terminated because the forecasted transaction is not expected to occur in the original specified time period, or a two-month period thereafter, the derivative gains or losses are immediately recognized in earnings. | ||||||||||||||||||||||||||||
The Company uses derivative instruments, primarily forward contracts designated as cash flow hedges, to hedge the foreign currency exposure associated with forecasted foreign-currency-denominated inter-company inventory sales to foreign subsidiaries and the related settlement of the foreign-currency-denominated inter-company receivables. Fluctuations in exchange rates will either increase or decrease the Company’s inter-company equivalent cash flows and affect the Company’s U.S. Dollar earnings. Gains or losses on the foreign currency exchange forward contracts that are used to hedge these exposures are expected to partially offset this variability. Foreign currency exchange forward contracts represent agreements to exchange the currency of one country for the currency of another country at an agreed-upon settlement date. As of May 3, 2014, the typical length of time over which forecasted foreign-currency-denominated inter-company inventory sales were hedged was 12 months. The sale of the inventory to the Company’s customers will result in the reclassification of related derivative gains and losses that are reported in Accumulated Other Comprehensive Income (Loss). Substantially all of the remaining unrealized gains or losses related to foreign-currency-denominated inter-company inventory sales that have occurred as of May 3, 2014 will be recognized in cost of goods sold over the following two months at the values at the date the inventory was sold to the respective subsidiary. | ||||||||||||||||||||||||||||
The Company presents its derivative assets and derivative liabilities at their gross fair values on the Consolidated Balance Sheets. However, our master netting and other similar arrangements allow net settlements under certain conditions. | ||||||||||||||||||||||||||||
As of May 3, 2014, the Company had outstanding the following foreign currency exchange forward contracts that were entered into to hedge either a portion, or all, of forecasted foreign-currency-denominated inter-company inventory sales, the resulting settlement of the foreign-currency-denominated inter-company accounts receivable, or both: | ||||||||||||||||||||||||||||
Notional Amount(1) | ||||||||||||||||||||||||||||
Euro | $ | 98,884 | ||||||||||||||||||||||||||
British Pound | $ | 43,641 | ||||||||||||||||||||||||||
Canadian Dollar | $ | 14,079 | ||||||||||||||||||||||||||
(1) | Amounts are reported in thousands and in U.S. Dollar equivalent as of May 3, 2014. | |||||||||||||||||||||||||||
The Company also uses foreign currency exchange forward contracts to hedge certain foreign-currency-denominated net monetary assets/liabilities. Examples of monetary assets/liabilities include cash balances, receivables and payables. Fluctuations in exchange rates result in transaction gains/(losses) being recorded in earnings as U.S. GAAP requires that monetary assets/liabilities be remeasured at the spot exchange rate at quarter-end or upon settlement. The Company has chosen not to apply hedge accounting to these instruments because there are no differences in the timing of gain or loss recognition on the hedging instrument and the hedged item. | ||||||||||||||||||||||||||||
As of May 3, 2014, the Company had outstanding the following foreign currency forward contracts that were entered into to hedge foreign currency denominated net monetary assets/liabilities: | ||||||||||||||||||||||||||||
Notional Amount(1) | ||||||||||||||||||||||||||||
Euro | $ | 13,794 | ||||||||||||||||||||||||||
Swiss Franc | $ | 3,389 | ||||||||||||||||||||||||||
(1) | Amounts are reported in thousands and in U.S. Dollar equivalent as of May 3, 2014. | |||||||||||||||||||||||||||
The location and amounts of derivative fair values on the Consolidated Balance Sheets as of May 3, 2014 and February 1, 2014 were as follows: | ||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||
(in thousands): | Balance Sheet Location | May 3, | February 1, | Balance Sheet Location | May 3, | February 1, | ||||||||||||||||||||||
2014 | 2014 | 2014 | 2014 | |||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||||||||||
Foreign Currency Exchange Forward Contracts | Other Current Assets | $ | 310 | $ | 691 | Other Liabilities | $ | 5,246 | $ | 2,503 | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||||||||||
Foreign Currency Exchange Forward Contracts | Other Current Assets | $ | 29 | $ | 278 | Other Liabilities | $ | 79 | $ | 52 | ||||||||||||||||||
Total | Other Current Assets | $ | 339 | $ | 969 | Other Liabilities | $ | 5,325 | $ | 2,555 | ||||||||||||||||||
Refer to Note 7, “FAIR VALUE,” for further discussion of the determination of the fair value of derivatives. | ||||||||||||||||||||||||||||
The location and amounts of derivative gains and losses for the thirteen-week periods ended May 3, 2014 and May 4, 2013 on the Consolidated Statements of Operations and Comprehensive Income (Loss) were as follows: | ||||||||||||||||||||||||||||
Thirteen Weeks Ended | ||||||||||||||||||||||||||||
May 3, 2014 | May 4, 2013 | |||||||||||||||||||||||||||
(in thousands): | Location | Gain/(Loss) | Gain/(Loss) | |||||||||||||||||||||||||
Derivatives not designated as Hedging Instruments: | ||||||||||||||||||||||||||||
Foreign Exchange Forward Contracts | Other Operating (Income) Expense, Net | $ | 688 | $ | 1,304 | |||||||||||||||||||||||
Amount of Gain (Loss) Recognized in OCI on Derivative Contracts (Effective Portion) (a) | Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion) | Amount of Gain (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion) (b) | Location of Gain (Loss) Recognized in Earnings on Derivative Contracts (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Amount of Gain (Loss) Recognized in Earnings on Derivative Contracts (Ineffective Portion and Amount Excluded from Effectiveness Testing) (c) | ||||||||||||||||||||||||
Thirteen Weeks Ended | ||||||||||||||||||||||||||||
(in thousands): | May 3, | May 4, | May 3, | May 4, | May 3, | May 4, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||||||||||||
Foreign Currency Exchange Forward Contracts | $ | (5,025 | ) | $ | 9,769 | Cost of Goods Sold | $ | (1,434 | ) | $ | (729 | ) | Other Operating (Income) Expense, Net | $ | 3 | $ | 97 | |||||||||||
(a) | The amount represents the change in fair value of derivative contracts due to changes in spot rates. | |||||||||||||||||||||||||||
(b) | The amount represents the reclassification from OCI into earnings when the hedged item affects earnings, which is when merchandise is sold to the Company’s customers. | |||||||||||||||||||||||||||
(c) | The amount represents the change in fair value of derivative contracts due to changes in the difference between the spot price and forward price that is excluded from the assessment of hedge effectiveness and, therefore, recognized in earnings. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | |||||||||||
3-May-14 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||
The activity in accumulated other comprehensive income (loss), for the thirteen weeks ended May 3, 2014 is as follows (in thousands): | ||||||||||||
Thirteen Weeks Ended May 3, 2014 | ||||||||||||
Derivative Financial Instruments | Foreign Currency Translation | Total | ||||||||||
Beginning balance at February 1, 2014 | $ | (2,166 | ) | $ | (18,751 | ) | $ | (20,917 | ) | |||
Other comprehensive income (loss) before reclassifications | (5,025 | ) | 14,866 | 9,841 | ||||||||
Reclassified from accumulated other comprehensive income (loss) (1) | 1,434 | — | 1,434 | |||||||||
Tax effect on derivative financial instruments | 462 | — | 462 | |||||||||
Net current-period other comprehensive income (loss) | $ | (3,129 | ) | $ | 14,866 | $ | 11,737 | |||||
Ending balance at May 3, 2014 | $ | (5,295 | ) | $ | (3,885 | ) | $ | (9,180 | ) | |||
(1) For the thirteen weeks ended May 3, 2014, the gain or loss was reclassified from Other Comprehensive Income (Loss) to the Cost of Goods Sold line item on the Consolidated Statement of Operations and Comprehensive Income (Loss). | ||||||||||||
The activity in accumulated other comprehensive income (loss), for the thirteen weeks ended May 4, 2013 is as follows (in thousands): | ||||||||||||
Thirteen Weeks Ended May 4, 2013 | ||||||||||||
Derivative Financial Instruments | Foreign Currency Translation | Total | ||||||||||
Beginning balance at February 2, 2013 | $ | (7,220 | ) | $ | (6,068 | ) | $ | (13,288 | ) | |||
Other comprehensive income (loss) before reclassifications | 8,825 | (17,260 | ) | (8,435 | ) | |||||||
Reclassified from accumulated other comprehensive income (loss), net of tax(1) | 670 | — | 670 | |||||||||
Net current-period other comprehensive income (loss) | $ | 9,495 | $ | (17,260 | ) | $ | (7,765 | ) | ||||
Ending balance at May 4, 2013 | $ | 2,275 | $ | (23,328 | ) | $ | (21,053 | ) | ||||
(1) For the thirteen weeks ended May 4, 2013, the gain or loss was reclassified from Other Comprehensive Income (Loss) to the Cost of Goods Sold line item on the Consolidated Statement of Operations and Comprehensive Income (Loss). | ||||||||||||
The tax effect on derivative financial instruments was a $0.5 million benefit and $1.0 million in expense for the thirteen-week periods ended May 3, 2014 and May 4, 2013, respectively, and is included in Unrealized Gain (Loss) on Derivative Financial Instruments, net of taxes in the Consolidated Statements of Comprehensive Income. |
Gilly_Hicks_Restructuring
Gilly Hicks Restructuring | 3 Months Ended | |||
3-May-14 | ||||
Restructuring and Related Activities [Abstract] | ' | |||
GILLY HICKS RESTRUCTURING | ' | |||
GILLY HICKS RESTRUCTURING | ||||
As previously announced, on November 1, 2013, A&F’s Board of Directors approved the closure of the Company’s 24 stand-alone Gilly Hicks stores. The Company substantially completed the store closures as planned by the end of the first quarter of Fiscal 2014. The Company continues to offer Gilly Hicks products through Hollister stores and direct-to-consumer channels. | ||||
As a result of exiting the Gilly Hicks branded stores, the Company currently estimates that it will incur aggregate pre-tax charges of approximately $89 million, of which $5.6 million of charges, primarily related to lease terminations, was recognized during the first quarter of Fiscal 2014. | ||||
Below is a summary of the aggregate pre-tax charges incurred from the announcement on November 1, 2013 through May 3, 2014 related to the closure of the Gilly Hicks branded stores (in thousands): | ||||
Lease Terminations and Store Closure Costs | $ | 47,895 | ||
Asset Impairment | 37,940 | |||
Other | 1,297 | |||
Total Charges (1) | $ | 87,132 | ||
(1) As of May 3, 2014, the Company incurred aggregate pre-tax charges related to restructuring plans for the Gilly Hicks brand of $49.6 million for the U.S. Stores segment and $37.5 million for the International Stores segment. | ||||
The remaining charges, primarily lease-related, including the net present value of payments related to lease terminations, potential sub-lease losses and other lease-related costs of approximately $1.9 million, are expected to be recognized over the remaining lease terms. These estimates are based on a number of significant assumptions and could change materially. | ||||
Costs associated with exit or disposal activities are recorded when the liability is incurred. Below is a roll forward of the liabilities recognized on the Consolidated Balance Sheet as of May 3, 2014, related to the closure of the Gilly Hicks stores (in thousands): | ||||
Accrued Liability as of February 1, 2014 | $ | 42,507 | ||
Costs Incurred, Excluding Non-Cash Charges | 10,757 | |||
Cash Payments | (39,142 | ) | ||
Accrued Liability as of May 3, 2014 | $ | 14,122 | ||
Contingencies
Contingencies | 3 Months Ended |
3-May-14 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
CONTINGENCIES | ' |
CONTINGENCIES | |
A&F is a defendant in lawsuits and other adversary proceedings arising in the ordinary course of business. Legal costs incurred in connection with the resolution of claims and lawsuits are generally expensed as incurred, and the Company establishes reserves for the outcome of litigation where it deems appropriate to do so under applicable accounting rules. The Company’s assessment of the current exposure could change in the event of the discovery of additional facts with respect to legal matters pending against the Company or determinations by judges, juries, administrative agencies or other finders of fact that are not in accordance with the Company’s evaluation of claims. Actual liabilities may exceed the amounts reserved, and there can be no assurance that final resolution of these matters will not have a material adverse effect on the Company’s financial condition, results of operations or cash flows. The Company has established accruals for certain matters where losses are deemed probable and reasonably estimable. There are other claims and legal proceedings pending against the Company for which accruals have not been established. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
3-May-14 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | |
In July 2013, the Financial Accounting Standards Board ("FASB") issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which amends ASC 740, “Income Taxes.” The amendments provide guidance on the financial statement presentation of an unrecognized tax benefit as either a reduction of a deferred tax asset or as a liability, when a net operating loss carryforward, similar tax loss or a tax credit carryforward exists. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption did not have an impact on the Company's consolidated financial statements. | |
In May 2014, FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. The Company is currently evaluating the new standard. |
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | |||||||||||||||||||||||
3-May-14 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | ' | |||||||||||||||||||||||
The following table provides the Company’s segment information for the thirteen-week periods ended May 3, 2014 and May 4, 2013. | ||||||||||||||||||||||||
U.S. Stores | International | Direct-to- | Segment Total | Other(1) | Total | |||||||||||||||||||
Stores | Consumer | |||||||||||||||||||||||
Operations | ||||||||||||||||||||||||
(in thousands): | ||||||||||||||||||||||||
Thirteen Weeks Ended May 3, 2014 | ||||||||||||||||||||||||
Net Sales | $ | 399,148 | $ | 252,882 | $ | 170,398 | $ | 822,428 | $ | — | $ | 822,428 | ||||||||||||
Operating Income (Loss) (2) | 31,284 | 42,723 | 56,232 | 130,239 | (161,745 | ) | (31,506 | ) | ||||||||||||||||
Thirteen Weeks Ended May 4, 2013 | ||||||||||||||||||||||||
Net Sales | $ | 448,616 | $ | 257,434 | $ | 132,719 | $ | 838,769 | $ | — | $ | 838,769 | ||||||||||||
Operating Income (Loss) | 39,821 | 53,533 | 56,183 | 149,537 | (163,458 | ) | (13,921 | ) | ||||||||||||||||
(1) | Includes corporate functions not dedicated to an individual store or direct-to-consumer operations such as Design, Merchandising, Sourcing, Planning, Allocation, Store Management and Support, Marketing, Distribution Center Operations, Information Technology, Real Estate, Finance, Legal, Human Resources and other corporate overhead. | |||||||||||||||||||||||
(2) | Includes charges related to the restructuring of the Gilly Hicks brand, the Company's profit improvement initiative and legal, advisory and other charges related to certain corporate governance matters of which $6.9 million is included for International Stores, $9.2 million is included for Other and $0.5 million of income related to the true-up of Gilly Hicks estimated liabilities, net of additional charges, is included in U.S. Stores for the thirteen-week period ended May 3, 2014. | |||||||||||||||||||||||
Schedule of Net Sales by Brand | ' | |||||||||||||||||||||||
Net Sales by brand were as follows: | ||||||||||||||||||||||||
Thirteen Weeks Ended | ||||||||||||||||||||||||
(in thousands): | 3-May-14 | 4-May-13 | ||||||||||||||||||||||
Abercrombie & Fitch | $ | 317,818 | $ | 324,748 | ||||||||||||||||||||
abercrombie | 68,460 | 73,223 | ||||||||||||||||||||||
Hollister | 421,634 | 421,233 | ||||||||||||||||||||||
Gilly Hicks | 14,516 | 19,565 | ||||||||||||||||||||||
Total | $ | 822,428 | $ | 838,769 | ||||||||||||||||||||
Schedule of Revenue from External Customers, by Geographical Areas | ' | |||||||||||||||||||||||
Net Sales by geographic area were as follows: | ||||||||||||||||||||||||
Thirteen Weeks Ended | ||||||||||||||||||||||||
(in thousands): | 3-May-14 | 4-May-13 | ||||||||||||||||||||||
United States | $ | 504,396 | $ | 534,897 | ||||||||||||||||||||
Europe | 235,614 | 236,654 | ||||||||||||||||||||||
Other | 82,418 | 67,218 | ||||||||||||||||||||||
Total | $ | 822,428 | $ | 838,769 | ||||||||||||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | |||||||||||||||
3-May-14 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Schedule of Stock Option Activity | ' | |||||||||||||||
Below is a summary of stock option activity for the thirteen weeks ended May 3, 2014: | ||||||||||||||||
Number of | Weighted-Average | Aggregate | Weighted-Average | |||||||||||||
Underlying | Exercise Price | Intrinsic Value | Remaining | |||||||||||||
Shares | Contractual Life | |||||||||||||||
Outstanding at February 1, 2014 | 532,400 | $ | 65.37 | |||||||||||||
Granted | — | — | ||||||||||||||
Exercised | (5,000 | ) | 31.07 | |||||||||||||
Forfeited or expired | (1,200 | ) | 78.65 | |||||||||||||
Outstanding at May 3, 2014 | 526,200 | $ | 65.66 | $ | 1,093,780 | 3.1 | ||||||||||
Stock options exercisable at May 3, 2014 | 526,200 | $ | 65.66 | $ | 1,093,780 | 3.1 | ||||||||||
Schedule of Stock Appreciation Rights Activity | ' | |||||||||||||||
The following table summarizes stock appreciation rights activity for the thirteen weeks ended May 3, 2014: | ||||||||||||||||
Number of | Weighted-Average | Aggregate | Weighted-Average | |||||||||||||
Underlying | Exercise Price | Intrinsic Value | Remaining | |||||||||||||
Shares | Contractual Life | |||||||||||||||
Outstanding at February 1, 2014 | 8,982,959 | $ | 40.76 | |||||||||||||
Granted | 301,500 | 39.1 | ||||||||||||||
Exercised | (15,125 | ) | 30.83 | |||||||||||||
Forfeited or expired | (8,100 | ) | 49.02 | |||||||||||||
Outstanding at May 3, 2014 | 9,261,234 | $ | 40.71 | $ | 39,254,021 | 3.4 | ||||||||||
Stock appreciation rights exercisable at May 3, 2014 | 8,480,209 | $ | 40.3 | $ | 39,144,076 | 2.9 | ||||||||||
Stock appreciation rights expected to become exercisable in the future as of May 3, 2014 | 688,381 | $ | 45.71 | $ | 84,674 | 8.8 | ||||||||||
Schedule of Weighted-Average Estimated Fair Value and Assumptions of Stock Appreciation Rights | ' | |||||||||||||||
The weighted-average assumptions used in the Black-Scholes option-pricing model for stock appreciation rights granted during the thirteen-week periods ended May 3, 2014 and May 4, 2013, were as follows: | ||||||||||||||||
Executive Officers other than the CEO | All Other Associates | |||||||||||||||
3-May-14 | 4-May-13 | 3-May-14 | 4-May-13 | |||||||||||||
Grant date market price | $ | 38.5 | $ | 45.69 | $ | 38.63 | $ | 45.72 | ||||||||
Exercise price | $ | 39.64 | $ | 45.69 | $ | 38.84 | $ | 45.72 | ||||||||
Fair value | $ | 14.4 | $ | 19.96 | $ | 13.58 | $ | 16.95 | ||||||||
Assumptions: | ||||||||||||||||
Price volatility | 50 | % | 61 | % | 50 | % | 54 | % | ||||||||
Expected term (years) | 4.9 | 4.7 | 4.1 | 4.1 | ||||||||||||
Risk-free interest rate | 1.8 | % | 0.7 | % | 1.4 | % | 0.6 | % | ||||||||
Dividend yield | 1.9 | % | 1.8 | % | 1.9 | % | 1.8 | % | ||||||||
Schedule of Restricted Stock Unit Activity | ' | |||||||||||||||
The following table summarizes activity for restricted stock units with performance and/or service vesting conditions for the thirteen weeks ended May 3, 2014: | ||||||||||||||||
Number of Underlying | Weighted-Average | |||||||||||||||
Shares | Grant Date | |||||||||||||||
Fair Value | ||||||||||||||||
Unvested at February 1, 2014 | 1,426,579 | $ | 46 | |||||||||||||
Granted (1) | 470,178 | 34.12 | ||||||||||||||
Vested | (305,188 | ) | 48.55 | |||||||||||||
Forfeited | (58,400 | ) | 45.98 | |||||||||||||
Unvested at May 3, 2014 | 1,533,169 | $ | 41.21 | |||||||||||||
(1) | Number of shares granted includes 158,922 shares related to the grant of restricted stock units with performance vesting conditions in Fiscal 2014. This reflects the target amount granted; however, the number of awards that ultimately are earned will vary from 0% - 200% of target depending on the level of achievement of performance criteria. | |||||||||||||||
The following table summarizes activity for restricted stock units with market vesting conditions for the thirteen weeks ended May 3, 2014: | ||||||||||||||||
Number of Underlying | Weighted-Average | |||||||||||||||
Shares | Grant Date | |||||||||||||||
Fair Value | ||||||||||||||||
Unvested at February 1, 2014 | — | $ | — | |||||||||||||
Granted (1) | 79,458 | 45.02 | ||||||||||||||
Vested | — | — | ||||||||||||||
Forfeited | — | — | ||||||||||||||
Unvested at May 3, 2014 | 79,458 | $ | 45.02 | |||||||||||||
(1) | Number of shares granted reflects the target amount granted; however, the number of awards that ultimately are earned will vary from 0% - 200% of target depending on market performance. |
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Table) | 3 Months Ended | |||||
3-May-14 | ||||||
Earnings Per Share [Abstract] | ' | |||||
Schedule of Weighted Average Number of Shares | ' | |||||
Weighted-Average Shares Outstanding and Anti-Dilutive Shares (in thousands): | ||||||
Thirteen Weeks Ended | ||||||
3-May-14 | 4-May-13 | |||||
Shares of Common Stock issued | 103,300 | 103,300 | ||||
Treasury shares | (28,817 | ) | (24,976 | ) | ||
Weighted-Average—Basic Shares | 74,483 | 78,324 | ||||
Dilutive effect of share-based compensation awards | — | — | ||||
Weighted-Average—Diluted Shares | 74,483 | 78,324 | ||||
Anti-Dilutive Shares (1) | 11,400 | 11,404 | ||||
(1) | Reflects the number of shares subject to outstanding share-based compensation awards but excluded from the computation of net (loss) income per diluted share because the impact would have been anti-dilutive. |
Cash_and_Equivalents_Tables
Cash and Equivalents (Tables) | 3 Months Ended | |||||||
3-May-14 | ||||||||
Cash and Cash Equivalents [Abstract] | ' | |||||||
Schedule of Cash and Equivalents | ' | |||||||
Cash and equivalents consisted of (in thousands): | ||||||||
May 3, 2014 | February 1, 2014 | |||||||
Cash and equivalents: | ||||||||
Cash | $ | 357,122 | $ | 452,116 | ||||
Cash equivalents | — | 148,000 | ||||||
Total cash and equivalents | $ | 357,122 | $ | 600,116 | ||||
Rabbi_Trust_Assets_Tables
Rabbi Trust Assets (Tables) | 3 Months Ended | |||||
3-May-14 | ||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||
Components of Rabbi Trust Assets | ' | |||||
Investments consisted of (in thousands): | ||||||
May 3, 2014 | February 1, 2014 | |||||
Rabbi Trust assets: | ||||||
Money market funds | 24 | 24 | ||||
Trust-owned life insurance policies (at cash surrender value) | 91,005 | 90,198 | ||||
Total Rabbi Trust assets | 91,029 | 90,222 | ||||
Fair_Value_Tables
Fair Value (Tables) | 3 Months Ended | |||||||||||||||
3-May-14 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Company's Assets and Liabilities Measured at Fair Value | ' | |||||||||||||||
The three levels of the hierarchy and the distribution of the Company’s assets and liabilities, measured at fair value, within it were as follows: | ||||||||||||||||
Assets and Liabilities at Fair Value as of May 3, 2014 | ||||||||||||||||
(in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
ASSETS: | ||||||||||||||||
Money market funds | $ | 24 | $ | — | $ | — | $ | 24 | ||||||||
Derivative financial instruments | — | 339 | — | 339 | ||||||||||||
Total assets measured at fair value | $ | 24 | $ | 339 | $ | — | $ | 363 | ||||||||
LIABILITIES: | ||||||||||||||||
Derivative financial instruments | — | 5,325 | — | 5,325 | ||||||||||||
Total liabilities measured at fair value | $ | — | $ | 5,325 | $ | — | $ | 5,325 | ||||||||
Assets and Liabilities at Fair Value as of February 1, 2014 | ||||||||||||||||
(in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
ASSETS: | ||||||||||||||||
Money market funds (1) | $ | 148,024 | $ | — | $ | — | $ | 148,024 | ||||||||
Derivative financial instruments | — | 969 | — | 969 | ||||||||||||
Total assets measured at fair value | $ | 148,024 | $ | 969 | $ | — | $ | 148,993 | ||||||||
LIABILITIES: | ||||||||||||||||
Derivative financial instruments | — | 2,555 | — | 2,555 | ||||||||||||
Total liabilities measured at fair value | $ | — | $ | 2,555 | $ | — | $ | 2,555 | ||||||||
(1) Includes $148.0 million of money market funds included in Cash and Equivalents. |
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 3 Months Ended | |||||||
3-May-14 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment, Net | ' | |||||||
Property and equipment, net consisted of (in thousands): | ||||||||
May 3, 2014 | February 1, 2014 | |||||||
Property and equipment, at cost | $ | 2,888,275 | $ | 2,885,712 | ||||
Accumulated depreciation and amortization | (1,766,498 | ) | (1,754,371 | ) | ||||
Property and equipment, net | $ | 1,121,777 | $ | 1,131,341 | ||||
Deferred_Lease_Credits_Tables
Deferred Lease Credits (Tables) | 3 Months Ended | |||||||
3-May-14 | ||||||||
Deferred Lease Credits [Abstract] | ' | |||||||
Amortized Amounts Over the Life of the Related Leases | ' | |||||||
The amounts, which are amortized over the respective terms of the related leases, consisted of the following (in thousands): | ||||||||
May 3, 2014 | February 1, 2014 | |||||||
Deferred lease credits | $ | 534,799 | $ | 543,040 | ||||
Amortized deferred lease credits | (364,442 | ) | (366,076 | ) | ||||
Total deferred lease credits, net | $ | 170,357 | $ | 176,964 | ||||
Derivatives_Tables
Derivatives (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
3-May-14 | ||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Outstanding Foreign Exchange Forward Contracts | ' | |||||||||||||||||||||||||||
As of May 3, 2014, the Company had outstanding the following foreign currency exchange forward contracts that were entered into to hedge either a portion, or all, of forecasted foreign-currency-denominated inter-company inventory sales, the resulting settlement of the foreign-currency-denominated inter-company accounts receivable, or both: | ||||||||||||||||||||||||||||
Notional Amount(1) | ||||||||||||||||||||||||||||
Euro | $ | 98,884 | ||||||||||||||||||||||||||
British Pound | $ | 43,641 | ||||||||||||||||||||||||||
Canadian Dollar | $ | 14,079 | ||||||||||||||||||||||||||
(1) | Amounts are reported in thousands and in U.S. Dollar equivalent as of May 3, 2014. | |||||||||||||||||||||||||||
As of May 3, 2014, the Company had outstanding the following foreign currency forward contracts that were entered into to hedge foreign currency denominated net monetary assets/liabilities: | ||||||||||||||||||||||||||||
Notional Amount(1) | ||||||||||||||||||||||||||||
Euro | $ | 13,794 | ||||||||||||||||||||||||||
Swiss Franc | $ | 3,389 | ||||||||||||||||||||||||||
(1) | Amounts are reported in thousands and in U.S. Dollar equivalent as of May 3, 2014. | |||||||||||||||||||||||||||
Location and Amounts of Derivative Fair Values on the Consolidated Balance Sheets | ' | |||||||||||||||||||||||||||
The location and amounts of derivative fair values on the Consolidated Balance Sheets as of May 3, 2014 and February 1, 2014 were as follows: | ||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||
(in thousands): | Balance Sheet Location | May 3, | February 1, | Balance Sheet Location | May 3, | February 1, | ||||||||||||||||||||||
2014 | 2014 | 2014 | 2014 | |||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||||||||||
Foreign Currency Exchange Forward Contracts | Other Current Assets | $ | 310 | $ | 691 | Other Liabilities | $ | 5,246 | $ | 2,503 | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||||||||||
Foreign Currency Exchange Forward Contracts | Other Current Assets | $ | 29 | $ | 278 | Other Liabilities | $ | 79 | $ | 52 | ||||||||||||||||||
Total | Other Current Assets | $ | 339 | $ | 969 | Other Liabilities | $ | 5,325 | $ | 2,555 | ||||||||||||||||||
Location and Amounts of Derivative Gains and Losses on the Consolidated Statements of Operations and Comprehensive Income (Loss) | ' | |||||||||||||||||||||||||||
The location and amounts of derivative gains and losses for the thirteen-week periods ended May 3, 2014 and May 4, 2013 on the Consolidated Statements of Operations and Comprehensive Income (Loss) were as follows: | ||||||||||||||||||||||||||||
Thirteen Weeks Ended | ||||||||||||||||||||||||||||
May 3, 2014 | May 4, 2013 | |||||||||||||||||||||||||||
(in thousands): | Location | Gain/(Loss) | Gain/(Loss) | |||||||||||||||||||||||||
Derivatives not designated as Hedging Instruments: | ||||||||||||||||||||||||||||
Foreign Exchange Forward Contracts | Other Operating (Income) Expense, Net | $ | 688 | $ | 1,304 | |||||||||||||||||||||||
Amount of Gain (Loss) Recognized in OCI on Derivative Contracts (Effective Portion) (a) | Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion) | Amount of Gain (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion) (b) | Location of Gain (Loss) Recognized in Earnings on Derivative Contracts (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Amount of Gain (Loss) Recognized in Earnings on Derivative Contracts (Ineffective Portion and Amount Excluded from Effectiveness Testing) (c) | ||||||||||||||||||||||||
Thirteen Weeks Ended | ||||||||||||||||||||||||||||
(in thousands): | May 3, | May 4, | May 3, | May 4, | May 3, | May 4, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||||||||||||
Foreign Currency Exchange Forward Contracts | $ | (5,025 | ) | $ | 9,769 | Cost of Goods Sold | $ | (1,434 | ) | $ | (729 | ) | Other Operating (Income) Expense, Net | $ | 3 | $ | 97 | |||||||||||
(a) | The amount represents the change in fair value of derivative contracts due to changes in spot rates. | |||||||||||||||||||||||||||
(b) | The amount represents the reclassification from OCI into earnings when the hedged item affects earnings, which is when merchandise is sold to the Company’s customers. | |||||||||||||||||||||||||||
(c) | The amount represents the change in fair value of derivative contracts due to changes in the difference between the spot price and forward price that is excluded from the assessment of hedge effectiveness and, therefore, recognized in earnings. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | |||||||||||
3-May-14 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||
The activity in accumulated other comprehensive income (loss), for the thirteen weeks ended May 3, 2014 is as follows (in thousands): | ||||||||||||
Thirteen Weeks Ended May 3, 2014 | ||||||||||||
Derivative Financial Instruments | Foreign Currency Translation | Total | ||||||||||
Beginning balance at February 1, 2014 | $ | (2,166 | ) | $ | (18,751 | ) | $ | (20,917 | ) | |||
Other comprehensive income (loss) before reclassifications | (5,025 | ) | 14,866 | 9,841 | ||||||||
Reclassified from accumulated other comprehensive income (loss) (1) | 1,434 | — | 1,434 | |||||||||
Tax effect on derivative financial instruments | 462 | — | 462 | |||||||||
Net current-period other comprehensive income (loss) | $ | (3,129 | ) | $ | 14,866 | $ | 11,737 | |||||
Ending balance at May 3, 2014 | $ | (5,295 | ) | $ | (3,885 | ) | $ | (9,180 | ) | |||
(1) For the thirteen weeks ended May 3, 2014, the gain or loss was reclassified from Other Comprehensive Income (Loss) to the Cost of Goods Sold line item on the Consolidated Statement of Operations and Comprehensive Income (Loss). | ||||||||||||
The activity in accumulated other comprehensive income (loss), for the thirteen weeks ended May 4, 2013 is as follows (in thousands): | ||||||||||||
Thirteen Weeks Ended May 4, 2013 | ||||||||||||
Derivative Financial Instruments | Foreign Currency Translation | Total | ||||||||||
Beginning balance at February 2, 2013 | $ | (7,220 | ) | $ | (6,068 | ) | $ | (13,288 | ) | |||
Other comprehensive income (loss) before reclassifications | 8,825 | (17,260 | ) | (8,435 | ) | |||||||
Reclassified from accumulated other comprehensive income (loss), net of tax(1) | 670 | — | 670 | |||||||||
Net current-period other comprehensive income (loss) | $ | 9,495 | $ | (17,260 | ) | $ | (7,765 | ) | ||||
Ending balance at May 4, 2013 | $ | 2,275 | $ | (23,328 | ) | $ | (21,053 | ) | ||||
(1) For the thirteen weeks ended May 4, 2013, the gain or loss was reclassified from Other Comprehensive Income (Loss) to the Cost of Goods Sold line item on the Consolidated Statement of Operations and Comprehensive Income (Loss). |
Gilly_Hicks_Restructuring_Tabl
Gilly Hicks Restructuring (Tables) | 3 Months Ended | |||
3-May-14 | ||||
Restructuring and Related Activities [Abstract] | ' | |||
Schedule of pre-tax charges incurred to-date related to the closure of Gilly Hicks | ' | |||
Below is a roll forward of the liabilities recognized on the Consolidated Balance Sheet as of May 3, 2014, related to the closure of the Gilly Hicks stores (in thousands): | ||||
Accrued Liability as of February 1, 2014 | $ | 42,507 | ||
Costs Incurred, Excluding Non-Cash Charges | 10,757 | |||
Cash Payments | (39,142 | ) | ||
Accrued Liability as of May 3, 2014 | $ | 14,122 | ||
Below is a summary of the aggregate pre-tax charges incurred from the announcement on November 1, 2013 through May 3, 2014 related to the closure of the Gilly Hicks branded stores (in thousands): | ||||
Lease Terminations and Store Closure Costs | $ | 47,895 | ||
Asset Impairment | 37,940 | |||
Other | 1,297 | |||
Total Charges (1) | $ | 87,132 | ||
(1) As of May 3, 2014, the Company incurred aggregate pre-tax charges related to restructuring plans for the Gilly Hicks brand of $49.6 million for the U.S. Stores segment and $37.5 million for the International Stores segment. |
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 3 Months Ended | |
3-May-14 | 4-May-13 | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ' | ' |
Tax expense related to correction of errors | ($9,832,000) | ($8,346,000) |
Prior Periods Correction | ' | ' |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ' | ' |
Pre-tax adjustments related correction of errors | 1,500,000 | 2,500,000 |
Tax expense related to correction of errors | ' | $1,200,000 |
Segment_Reporting_Segment_Repo
Segment Reporting (Segment Reporting Information, by Segment) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 | ||
segment | ||||
Segment Reporting Information [Line Items] | ' | ' | ||
Number of reportable segments | 3 | ' | ||
Net Sales | $822,428 | $838,769 | ||
Operating Income (Loss) | -31,506 | [1] | -13,921 | |
U.S. Stores | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Sales | 399,148 | 448,616 | ||
Operating Income (Loss) | 31,284 | [1] | 39,821 | |
International Stores | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Sales | 252,882 | 257,434 | ||
Operating Income (Loss) | 42,723 | [1] | 53,533 | |
Direct-to-Consumer Operations | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Sales | 170,398 | 132,719 | ||
Operating Income (Loss) | 56,232 | [1] | 56,183 | |
Segment Total | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Sales | 822,428 | 838,769 | ||
Operating Income (Loss) | 130,239 | [1] | 149,537 | |
Other | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Sales | 0 | [2] | 0 | [2] |
Operating Income (Loss) | -161,745 | [1],[2] | -163,458 | [2] |
Gilly Hicks | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Sales | 14,516 | 19,565 | ||
Gilly Hicks | Facility Closing | U.S. Stores | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Operating Income (Loss) | 500 | [1] | ' | |
Restructuring, Profit Improvement Initiative, Corporate Governance Matters | International Stores | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Operating Income (Loss) | 6,900 | ' | ||
Restructuring, Profit Improvement Initiative, Corporate Governance Matters | Other | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Operating Income (Loss) | $9,200 | ' | ||
[1] | Includes charges related to the restructuring of the Gilly Hicks brand, the Company's profit improvement initiative and legal, advisory and other charges related to certain corporate governance matters of which $6.9 million is included for International Stores, $9.2 million is included for Other and $0.5 million of income related to the true-up of Gilly Hicks estimated liabilities, net of additional charges, is included in U.S. Stores for the thirteen-week period ended May 3, 2014. | |||
[2] | Includes corporate functions not dedicated to an individual store or direct-to-consumer operations such as Design, Merchandising, Sourcing, Planning, Allocation, Store Management and Support, Marketing, Distribution Center Operations, Information Technology, Real Estate, Finance, Legal, Human Resources and other corporate overhead. |
Segment_Reporting_Net_Sales_by
Segment Reporting (Net Sales by Brand) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
Schedule of Revenue by Brand [Line Items] | ' | ' |
Net Sales | $822,428 | $838,769 |
Abercrombie & Fitch | ' | ' |
Schedule of Revenue by Brand [Line Items] | ' | ' |
Net Sales | 317,818 | 324,748 |
abercrombie | ' | ' |
Schedule of Revenue by Brand [Line Items] | ' | ' |
Net Sales | 68,460 | 73,223 |
Hollister | ' | ' |
Schedule of Revenue by Brand [Line Items] | ' | ' |
Net Sales | 421,634 | 421,233 |
Gilly Hicks | ' | ' |
Schedule of Revenue by Brand [Line Items] | ' | ' |
Net Sales | $14,516 | $19,565 |
Segment_Reporting_Sales_by_Geo
Segment Reporting (Sales by Geographic Area) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
Net Sales | $822,428 | $838,769 |
United States | ' | ' |
Net Sales | 504,396 | 534,897 |
Europe | ' | ' |
Net Sales | 235,614 | 236,654 |
Other | ' | ' |
Net Sales | $82,418 | $67,218 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 3 Months Ended | |
3-May-14 | 4-May-13 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based compensation expense | $5,300,000 | $13,400,000 |
Tax benefit recognized related to share-based compensation expense | 2,000,000 | 5,000,000 |
Stock Appreciation Rights (SARs) | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total unrecognized compensation cost, net of estimated forfeitures | 11,700,000 | ' |
Unrecognized compensation cost, weighted-average period of recognition | '17 months | ' |
Total intrinsic value of awards exercised | ' | 1,400,000 |
Grant date fair value of award other than options vested during the period | 7,200,000 | 19,700,000 |
Performance and Service Conditions | Restricted Stock Units (RSUs) | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total unrecognized compensation cost, net of estimated forfeitures | 38,300,000 | ' |
Unrecognized compensation cost, weighted-average period of recognition | '17 months | ' |
Grant date fair value of award other than options vested during the period | 14,800,000 | 12,500,000 |
Fair value of awards granted during the period | 16,000,000 | 24,300,000 |
Market Conditions | Restricted Stock Units (RSUs) | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total unrecognized compensation cost, net of estimated forfeitures | 3,600,000 | ' |
Unrecognized compensation cost, weighted-average period of recognition | '14 months | ' |
Grant date fair value of award other than options vested during the period | $0 | ' |
ShareBased_Compensation_Stock_
Share-Based Compensation (Stock Option Activity) (Details) (USD $) | 3 Months Ended |
3-May-14 | |
Stock Option Activity, Number of Underlying Shares | ' |
Outstanding, Number of Underlying Shares, Beginning Balance | 532,400 |
Granted, Number of Underlying Shares | 0 |
Exercised, Number of Underlying Shares | -5,000 |
Forfeited or expired, Number of Underlying Shares | -1,200 |
Outstanding, Number of Underlying Shares, Ending Balance | 526,200 |
Stock Option Activity, Weighted Average Exercise Price | ' |
Outstanding, Weighted-Average Exercise Price, Beginning Balance | $65.37 |
Granted, Weighted-Average Exercise Price | $0 |
Exercised, Weighted-Average Exercise Price | $31.07 |
Forfeited or expired, Weighted-Average Exercise Price | $78.65 |
Outstanding, Weighted-Average Exercise Price, Ending Balance | $65.66 |
Outstanding, Aggregate Intrinsic Value | $1,093,780 |
Outstanding, Weighted-Average Remaining Contractual Life (in years) | '3 years 1 month |
Stock options exercisable, Number of Underlying Shares | 526,200 |
Stock options exercisable, Weighted-Average Exercise Price | $65.66 |
Stock options exercisable, Aggregate Intrinsic Value | $1,093,780 |
Stock options exercisable, Weighted-Average Remaining Contractual Life (in years) | '3 years 1 month |
ShareBased_Compensation_SARs_A
Share-Based Compensation (SARs Activity) (Details) (Stock Appreciation Rights (SARs), USD $) | 3 Months Ended |
3-May-14 | |
Stock Appreciation Rights (SARs) | ' |
Number of Underlying Shares Outstanding [Roll Forward] | ' |
Number of Underlying Shares, Beginning Balance | 8,982,959 |
Number of Underlying Shares, Granted | 301,500 |
Number of Underlying Shares, Exercised | -15,125 |
Number of Underlying Shares, Forfeited | -8,100 |
Number of Underlying Shares, Ending Balance | 9,261,234 |
Weighted-Average Exercise Price [Roll Forward] | ' |
Weighted-Average Grant Date Fair Value, Beginning Balance | $40.76 |
Fair value (in dollars per share) | $39.10 |
Weighted-Average Exercise Price, Exercised | $30.83 |
Weighted-Average Exercise Price, Forfeited or expired | $49.02 |
Weighted-Average Grant Date Fair Value, Ending Balance | $40.71 |
Aggregate Intrinsic Value, Outstanding | $39,254,021 |
Weighted-Average Remaining Contractual Life, Outstanding | '3 years 5 months |
Number of Underlying shares, Stock appreciation rights exercisable | 8,480,209 |
Number of Underlying Shares, Stock appreciation rights expected to become exercisable | 688,381 |
Weighted-Average Exercise Price, Stock appreciation rights exercisable | $40.30 |
Weighted-Average Exercise Price, Stock appreciation rights expected to become exercisable | $45.71 |
Aggregate Intrinsic Value, Stock appreciation rights exercisable | 39,144,076 |
Aggregate Intrinsic Value, Stock appreciation rights expected to become exercisable | $84,674 |
Weighted-Average Remaining Contractual Life, Stock appreciation rights exercisable | '2 years 11 months |
Weighted Average Remaining Contractual Life, Stock appreciation rights expected to become exercisable | '8 years 9 months |
ShareBased_Compensation_SARs_A1
Share-Based Compensation (SARs Assumptions) (Details) (Stock Appreciation Rights (SARs), USD $) | 3 Months Ended | |
3-May-14 | 4-May-13 | |
The weighted-average fair value and assumptions (stock appreciation rights) | ' | ' |
Fair value (in dollars per share) | $39.10 | ' |
Other Executive Officers | ' | ' |
The weighted-average fair value and assumptions (stock appreciation rights) | ' | ' |
Grant date market price (in dollars per share) | $38.50 | $45.69 |
Exercise price (in dollars per share) | $39.64 | $45.69 |
Fair value (in dollars per share) | $14.40 | $19.96 |
Assumptions: | ' | ' |
Price volatility | 50.00% | 61.00% |
Expected term (years) | '4 years 11 months | '4 years 8 months |
Risk-free interest rate | 1.80% | 0.70% |
Dividend yield | 1.90% | 1.80% |
All Other Associates | ' | ' |
The weighted-average fair value and assumptions (stock appreciation rights) | ' | ' |
Grant date market price (in dollars per share) | $38.63 | $45.72 |
Exercise price (in dollars per share) | $38.84 | $45.72 |
Fair value (in dollars per share) | $13.58 | $16.95 |
Assumptions: | ' | ' |
Price volatility | 50.00% | 54.00% |
Expected term (years) | '4 years 1 month | '4 years 1 month |
Risk-free interest rate | 1.40% | 0.60% |
Dividend yield | 1.90% | 1.80% |
ShareBased_Compensation_RSUs_A
Share-Based Compensation (RSUs Activity) (Details) (Restricted Stock Units (RSUs), USD $) | 3 Months Ended | |
3-May-14 | ||
Performance and Service Conditions | ' | |
Restricted Stock Unit Activity, Number of Underlying Shares | ' | |
Number of Underlying Shares, Beginning Balance | 1,426,579 | |
Number of Underlying Shares, Granted | 470,178 | [1] |
Number of Underlying Shares, Vested | -305,188 | |
Number of Underlying Shares, Forfeited | -58,400 | |
Number of Underlying Shares, Ending Balance | 1,533,169 | |
Restricted Stock Unit Activity, Weighted-Average Grant Date Fair Value | ' | |
Weighted-Average Grant Date Fair Value, Beginning Balance | $46 | |
Granted, Weighted-Average Grant Date Fair Value | $34.12 | |
Vested, Weighted-Average Grant Date Fair Value | $48.55 | |
Forfeited, Weighted-Average Grant Date Fair Value | $45.98 | |
Weighted-Average Grant Date Fair Value, Ending Balance | $41.21 | |
Performance and Service Conditions | Minimum | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Target percentage of equity awards earned | 0.00% | |
Performance and Service Conditions | Maximum | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Target percentage of equity awards earned | 200.00% | |
Performance Vesting Conditions | ' | |
Restricted Stock Unit Activity, Number of Underlying Shares | ' | |
Number of Underlying Shares, Granted | 158,922 | |
Market Conditions | ' | |
Restricted Stock Unit Activity, Number of Underlying Shares | ' | |
Number of Underlying Shares, Beginning Balance | 0 | |
Number of Underlying Shares, Granted | 79,458 | [2] |
Number of Underlying Shares, Vested | 0 | |
Number of Underlying Shares, Forfeited | 0 | |
Number of Underlying Shares, Ending Balance | 79,458 | |
Restricted Stock Unit Activity, Weighted-Average Grant Date Fair Value | ' | |
Weighted-Average Grant Date Fair Value, Beginning Balance | $0 | |
Granted, Weighted-Average Grant Date Fair Value | $45.02 | |
Vested, Weighted-Average Grant Date Fair Value | $0 | |
Forfeited, Weighted-Average Grant Date Fair Value | $0 | |
Weighted-Average Grant Date Fair Value, Ending Balance | $45.02 | |
Market Conditions | Minimum | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Target percentage of equity awards earned | 0.00% | |
Market Conditions | Maximum | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Target percentage of equity awards earned | 200.00% | |
[1] | Number of shares granted includes 158,922 shares related to the grant of restricted stock units with performance vesting conditions in Fiscal 2014. This reflects the target amount granted; however, the number of awards that ultimately are earned will vary from 0% - 200% of target depending on the level of achievement of performance criteria. | |
[2] | Number of shares granted reflects the target amount granted; however, the number of awards that ultimately are earned will vary from 0% - 200% of target depending on market performance. |
ShareBased_Compensation_RSUs_A1
Share-Based Compensation (RSUs Assumptions) (Details) (Restricted Stock Units (RSUs), Market Conditions, USD $) | 3 Months Ended |
3-May-14 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Fair value (in dollars per share) | $45.02 |
Chief Executive Officer | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Grant date market price (in dollars per share) | $38.50 |
Fair value (in dollars per share) | $43.96 |
Price volatility | 50.00% |
Expected term (years) | '2 years 9 months 18 days |
Risk-free interest rate | 0.80% |
Dividend yield | 2.10% |
Other Executive Officers | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Grant date market price (in dollars per share) | $38.50 |
Fair value (in dollars per share) | $46.86 |
Price volatility | 50.00% |
Expected term (years) | '2 years 9 months 18 days |
Risk-free interest rate | 0.80% |
Dividend yield | 2.10% |
Net_Income_Loss_Per_Share_Deta
Net Income (Loss) Per Share (Details) | 3 Months Ended | |||
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 | ||
Weighted Average Shares Outstanding And Anti Dilutive Shares [Abstract] | ' | ' | ||
Shares of Common Stock issued | 103,300 | 103,300 | ||
Treasury shares | -28,817 | -24,976 | ||
Weighted-Average - Basic Shares | 74,483 | 78,324 | ||
Dilutive effect of stock options, stock appreciation rights, restricted stock units and performance share awards | 0 | 0 | ||
Weighted-Average - Diluted Shares | 74,483 | 78,324 | ||
Anti-Dilutive Shares | 11,400 | [1] | 11,404 | [1] |
[1] | Reflects the number of shares subject to outstanding share-based compensation awards but excluded from the computation of net (loss) income per diluted share because the impact would have been anti-dilutive. |
Net_Income_Loss_Per_Share_ASR_
Net Income (Loss) Per Share ASR Agreement (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data in Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Accelerated Share Repurchases [Line Items] | ' | ' |
Payments for repurchase of common stock from Goldman Sachs & Co. | $150,000 | $16,305 |
Accelerated Share Repurchase | ' | ' |
Accelerated Share Repurchases [Line Items] | ' | ' |
Payments for repurchase of common stock from Goldman Sachs & Co. | $150,000 | ' |
Shares repurchased from Goldman Sachs & Co. | 3.1 | ' |
Additional shares received from accelerated share repurchase program | 0.7 | ' |
Cash_and_Equivalents_Details
Cash and Equivalents (Details) (USD $) | 3 Months Ended | |||
3-May-14 | Feb. 01, 2014 | 4-May-13 | Feb. 02, 2013 | |
Cash and equivalents | ' | ' | ' | ' |
Cash | $357,122,000 | $452,116,000 | ' | ' |
Cash equivalents | 0 | 148,000,000 | ' | ' |
Total cash and equivalents | 357,122,000 | 600,116,000 | 555,901,000 | 643,505,000 |
Maturity period on deposit amounts | '3 months | ' | ' | ' |
Restricted cash balance | $17,700,000 | $26,700,000 | ' | ' |
Rabbi_Trust_Assets_Schedule_of
Rabbi Trust Assets (Schedule of Rabbi Trust Assets) (Details) (USD $) | 3 Months Ended | ||
3-May-14 | 4-May-13 | Feb. 01, 2014 | |
Investment [Line Items] | ' | ' | ' |
Rabbi Trust assets | $91,029,000 | ' | $90,222,000 |
Realized gains resulted from the change in cash surrender value of insurance policies | 800,000 | 800,000 | ' |
Money Market Funds | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Rabbi Trust assets | 24,000 | ' | 24,000 |
Trust-owned life insurance policies (at cash surrender value) | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Rabbi Trust assets | $91,005,000 | ' | $90,198,000 |
Fair_Value_Assets_and_Liabilit
Fair Value (Assets and Liabilities at Fair Value) (Details) (USD $) | 3-May-14 | Feb. 01, 2014 | |
Fair Value, Measurements, Recurring | ' | ' | |
ASSETS: | ' | ' | |
Money market funds | $24,000 | $148,024,000 | [1] |
Derivative financial instruments | 339,000 | 969,000 | |
Total assets measured at fair value | 363,000 | 148,993,000 | |
LIABILITIES: | ' | ' | |
Derivative financial instruments | 5,325,000 | 2,555,000 | |
Total liabilities measured at fair value | 5,325,000 | 2,555,000 | |
Level 1 | Fair Value, Measurements, Recurring | ' | ' | |
ASSETS: | ' | ' | |
Money market funds | 24,000 | 148,024,000 | [1] |
Derivative financial instruments | 0 | 0 | |
Total assets measured at fair value | 24,000 | 148,024,000 | |
LIABILITIES: | ' | ' | |
Derivative financial instruments | 0 | 0 | |
Total liabilities measured at fair value | 0 | 0 | |
Level 2 | Fair Value, Measurements, Recurring | ' | ' | |
ASSETS: | ' | ' | |
Money market funds | 0 | 0 | |
Derivative financial instruments | 339,000 | 969,000 | |
Total assets measured at fair value | 339,000 | 969,000 | |
LIABILITIES: | ' | ' | |
Derivative financial instruments | 5,325,000 | 2,555,000 | |
Total liabilities measured at fair value | 5,325,000 | 2,555,000 | |
Level 3 | Fair Value, Measurements, Recurring | ' | ' | |
ASSETS: | ' | ' | |
Money market funds | 0 | 0 | |
Derivative financial instruments | 0 | 0 | |
Total assets measured at fair value | 0 | 0 | |
LIABILITIES: | ' | ' | |
Derivative financial instruments | 0 | 0 | |
Total liabilities measured at fair value | 0 | 0 | |
Money Market Funds | Level 1 | ' | ' | |
LIABILITIES: | ' | ' | |
Cash and cash equivalents included in money market funds | ' | $148,000,000 | |
[1] | Includes $148.0 million of money market funds included in Cash and Equivalents. |
Fair_Value_Details
Fair Value (Details) (Term Loan Agreement, USD $) | 3-May-14 | Feb. 01, 2014 | Jan. 23, 2013 |
In Millions, unless otherwise specified | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Amount outstanding | $131.30 | $135 | $150 |
Level 2 | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Fair value of Company's credit facility | $131.30 | $135 | ' |
Inventories_Details
Inventories (Details) (USD $) | 3-May-14 | Feb. 01, 2014 |
Inventory Disclosure [Abstract] | ' | ' |
Lower of cost or market adjustment to inventory | $15,500,000 | $22,100,000 |
Inventory shrink reserve | 9,300,000 | 13,600,000 |
Inventory, net | 486,026,000 | 530,192,000 |
Other Inventory, in Transit, Gross | $48,100,000 | $76,400,000 |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details) (USD $) | 3-May-14 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Property and equipment, net | ' | ' |
Property and equipment, at cost | $2,888,275 | $2,885,712 |
Accumulated depreciation and amortization | -1,766,498 | -1,754,371 |
Property and equipment, net | 1,121,777 | 1,131,341 |
Construction Project Assets | ' | ' |
Property and equipment, net | ' | ' |
Property and equipment, net | $53,000 | $52,300 |
Deferred_Lease_Credits_Details
Deferred Lease Credits (Details) (USD $) | 3-May-14 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Amortized amounts over the life of related leases | ' | ' |
Deferred lease credits | $534,799 | $543,040 |
Amortized deferred lease credits | -364,442 | -366,076 |
Total deferred lease credits, net | $170,357 | $176,964 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Income Tax Disclosure [Abstract] | ' | ' |
Effective income tax expense (benefit) rate from continuing operations | 29.30% | 53.70% |
Income taxes paid | $57.10 | $101.70 |
Borrowings_Details
Borrowings (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||
3-May-14 | 4-May-13 | Nov. 04, 2013 | Nov. 04, 2013 | 3-May-14 | Jul. 28, 2011 | 3-May-14 | 3-May-14 | 3-May-14 | Nov. 04, 2013 | 3-May-14 | 3-May-14 | 3-May-14 | Feb. 01, 2014 | 4-May-13 | Jan. 23, 2013 | Feb. 24, 2012 | |
Amended and Restated Credit Agreement, Three | Amended and Restated Credit Agreement, Three | Amended and Restated Credit Agreement | Amended and Restated Credit Agreement | Amended and Restated Credit Agreement | Amended and Restated Credit Agreement | Amended and Restated Credit Agreement | Amended and Restated Credit Agreement | Amended and Restated Credit Agreement | Amended and Restated Credit Agreement | Term Loan Agreement | Term Loan Agreement | Term Loan Agreement | Term Loan Agreement | Term Loan Agreement | |||
Minimum | Facility Closing | quarter | Interest Rate Option 2 | Interest Rate Option 3 | Minimum | Minimum | Maximum | Standby Letters of Credit | |||||||||
Federal Funds Open Rate | Daily Adjusted Eurodollar Rate | ||||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured credit agreement amount | ' | ' | ' | ' | ' | $350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $150,000,000 | $300,000,000 |
Interest period | ' | ' | ' | ' | ' | ' | ' | ' | '3 months | ' | ' | ' | ' | ' | ' | ' | ' |
Period following commencement of interest period | ' | ' | ' | ' | '3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, basis spread on variable rate | ' | ' | ' | ' | ' | ' | 0.50% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forward minimum rent commitment ratio | ' | ' | ' | ' | 600.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
EBITDAR look back period | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage facility fees accrue | ' | ' | ' | ' | ' | ' | ' | ' | 0.13% | ' | 0.30% | ' | ' | ' | ' | ' | ' |
Leverage ratio under credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.75 | ' | ' | ' | ' | ' | ' |
Minimum rent and contingent store rent for coverage ratio under credit facility | ' | ' | 1.75 | ' | ' | ' | ' | ' | ' | 1.75 | ' | ' | ' | ' | ' | ' | 1.75 |
stand-by letters of credit outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,500,000 | ' | ' | ' | ' | ' |
Quarterly amortization payment, principal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,750,000 | ' | ' | ' | ' |
Final repayment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90,000,000 | ' | ' | ' | ' |
Store-related asset impairment charges | ' | ' | ' | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent and contingent store rent for coverage ratio under credit facility in the next twelve months | ' | ' | 1.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stand-by letters of credit outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 131,300,000 | 135,000,000 | ' | 150,000,000 | ' |
Weighted average interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.07% | ' | 1.85% | ' | ' |
Interest expense, total | $1,300,000 | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leasehold_Financing_Obligation1
Leasehold Financing Obligations (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 | Feb. 01, 2014 |
Leasehold Financing Obligations [Abstract] | ' | ' | ' |
Leasehold Financing Obligation | $61.70 | ' | $60.70 |
Leasehold financing obligation, interest expense | $1.60 | $1.70 | ' |
Derivatives_Outstanding_Foreig
Derivatives (Outstanding Foreign Exchange Forward Contracts) (Details) (Cash Flow Hedging, Forward Contracts, USD $) | 3-May-14 | |
In Thousands, unless otherwise specified | ||
Inter-company Inventory and Accounts Receivables | Euro | ' | |
Derivative [Line Items] | ' | |
Notional Amount | $98,884 | [1] |
Inter-company Inventory and Accounts Receivables | British Pound | ' | |
Derivative [Line Items] | ' | |
Notional Amount | 43,641 | [1] |
Inter-company Inventory and Accounts Receivables | Canadian Dollar | ' | |
Derivative [Line Items] | ' | |
Notional Amount | 14,079 | [1] |
Assets and Liabilities | Euro | ' | |
Derivative [Line Items] | ' | |
Notional Amount | 13,794 | [1] |
Assets and Liabilities | Swiss Franc | ' | |
Derivative [Line Items] | ' | |
Notional Amount | $3,389 | [1] |
[1] | Amounts are reported in thousands and in U.S. Dollar equivalent as of May 3, 2014. |
Derivatives_Derivative_Fair_Va
Derivatives (Derivative Fair Values on the Consolidated Balance Sheets) (Details) (USD $) | 3-May-14 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
The location and amounts of derivative fair values on the Condensed Consolidated Balance Sheets | ' | ' |
Asset Derivatives | $339 | $969 |
Liability Derivatives | 5,325 | 2,555 |
Foreign Currency Exchange Forward Contracts | Other Current Assets | Designated As Hedging Instrument | ' | ' |
The location and amounts of derivative fair values on the Condensed Consolidated Balance Sheets | ' | ' |
Asset Derivatives | 310 | 691 |
Foreign Currency Exchange Forward Contracts | Other Current Assets | Not Designated as Hedging Instruments | ' | ' |
The location and amounts of derivative fair values on the Condensed Consolidated Balance Sheets | ' | ' |
Asset Derivatives | 29 | 278 |
Foreign Currency Exchange Forward Contracts | Other Liabilities | Designated As Hedging Instrument | ' | ' |
The location and amounts of derivative fair values on the Condensed Consolidated Balance Sheets | ' | ' |
Liability Derivatives | 5,246 | 2,503 |
Foreign Currency Exchange Forward Contracts | Other Liabilities | Not Designated as Hedging Instruments | ' | ' |
The location and amounts of derivative fair values on the Condensed Consolidated Balance Sheets | ' | ' |
Liability Derivatives | $79 | $52 |
Derivatives_Derivative_Gains_L
Derivatives (Derivative Gains (Losses) on the Consolidated Statement of Operations) (Details) (Foreign Currency Exchange Forward Contracts, USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 | ||
Cash Flow Hedging | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Amount of Gain (Loss) Recognized in OCI on Derivative Contracts (Effective Portion) | ($5,025) | [1] | $9,769 | [1] |
Other Operating (Income) Expense, Net | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Gain/(Loss) | 688 | 1,304 | ||
Other Operating (Income) Expense, Net | Cash Flow Hedging | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Amount of Gain (Loss) Recognized in Earnings on Derivative Contracts (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 3 | [2] | 97 | [2] |
Cost of Goods Sold | Cash Flow Hedging | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion) | ($1,434) | [3] | ($729) | [3] |
[1] | The amount represents the change in fair value of derivative contracts due to changes in spot rates. | |||
[2] | The amount represents the change in fair value of derivative contracts due to changes in the difference between the spot price and forward price that is excluded from the assessment of hedge effectiveness and, therefore, recognized in earnings. | |||
[3] | The amount represents the reclassification from OCI into earnings when the hedged item affects earnings, which is when merchandise is sold to the Company’s customers. |
Derivatives_Details
Derivatives (Details) | 3 Months Ended |
3-May-14 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Additional time period in which forecasted transaction is not expected to occur (in months) | '2 months |
Length of time inventory sales hedged (in months) | '12 months |
Period in which remaining unrealized gains or losses on intercompany inventory sales are recognized | '2 months |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ||
Beginning balance at February 1, 2014 | ($20,917) | ($13,288) | ||
Other comprehensive income (loss) before reclassifications | 9,841 | ' | ||
Reclassified from accumulated other comprehensive income (loss) | -1,434 | [1] | ' | |
Tax effect on derivative financial instruments | 462 | ' | ||
Other comprehensive income (loss) before reclassifications | ' | -8,435 | ||
Reclassified from accumulated other comprehensive income (loss), net of tax | ' | 670 | [1] | |
Other Comprehensive Income (Loss) | 11,737 | -7,765 | ||
Ending balance at May 3, 2014 | -9,180 | -21,053 | ||
Derivative Financial Instruments | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ||
Beginning balance at February 1, 2014 | -2,166 | -7,220 | ||
Other comprehensive income (loss) before reclassifications | -5,025 | ' | ||
Reclassified from accumulated other comprehensive income (loss) | -1,434 | [1] | ' | |
Tax effect on derivative financial instruments | 462 | -1,000 | ||
Other comprehensive income (loss) before reclassifications | ' | 8,825 | ||
Reclassified from accumulated other comprehensive income (loss), net of tax | ' | 670 | [1] | |
Other Comprehensive Income (Loss) | -3,129 | 9,495 | ||
Ending balance at May 3, 2014 | -5,295 | 2,275 | ||
Foreign Currency Translation | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ||
Beginning balance at February 1, 2014 | -18,751 | -6,068 | ||
Other comprehensive income (loss) before reclassifications | 14,866 | ' | ||
Reclassified from accumulated other comprehensive income (loss) | 0 | [1] | ' | |
Tax effect on derivative financial instruments | 0 | ' | ||
Other comprehensive income (loss) before reclassifications | ' | -17,260 | ||
Reclassified from accumulated other comprehensive income (loss), net of tax | ' | 0 | [1] | |
Other Comprehensive Income (Loss) | 14,866 | -17,260 | ||
Ending balance at May 3, 2014 | ($3,885) | ($23,328) | ||
[1] | For the thirteen weeks ended May 3, 2014, the gain or loss was reclassified from Other Comprehensive Income (Loss) to the Cost of Goods Sold line item on the Consolidated Statement of Operations and Comprehensive Income (Loss). |
Gilly_Hicks_Restructuring_Deta
Gilly Hicks Restructuring (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
3-May-14 | 3-May-14 | Nov. 01, 2013 | ||
store | ||||
International Stores | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | |
Total charges incurred to date | ' | $37,500,000 | ' | |
U.S. Stores | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | |
Total charges incurred to date | ' | 49,600,000 | ' | |
Facility Closing | Gilly Hicks | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | |
Number of stores | ' | ' | 24 | |
Total charges expected to be incurred | 89,000,000 | ' | ' | |
Total charges incurred to date | 5,600,000 | 87,132,000 | [1] | ' |
Remaining charges expected to be incurred | 1,900,000 | ' | ' | |
Non-Cash Charges [Abstract] | ' | ' | ' | |
Store-related asset impairment charges | ' | 37,940,000 | ' | |
Other Charges | ' | 1,297,000 | ' | |
Cash Charges [Abstract] | ' | ' | ' | |
Lease terminations | ' | $47,895,000 | ' | |
[1] | As of May 3, 2014, the Company incurred aggregate pre-tax charges related to restructuring plans for the Gilly Hicks brand of $49.6 million for the U.S. Stores segment and $37.5 million for the International Stores segment. |
Gilly_Hicks_Restructuring_Rest
Gilly Hicks Restructuring (Restructuring Reserves) (Details) (Gilly Hicks, USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | 3-May-14 |
Gilly Hicks | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Accrued Liability as of February 1, 2014 | $42,507 |
Costs Incurred, Excluding Non-Cash Charges | 10,757 |
Cash Payments | -39,142 |
Accrued Liability as of May 3, 2014 | $14,122 |