Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Mar. 26, 2015 | Aug. 01, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ABERCROMBIE & FITCH CO /DE/ | ||
Entity Central Index Key | 1018840 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Jan-15 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -30 | ||
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 | 69,548,066 | ||
Entity Public Float | $2,672,148,648 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive (Loss) Income (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |||
Income Statement [Abstract] | ||||||
NET SALES | $3,744,030 | $4,116,897 | $4,510,805 | |||
Cost of Goods Sold | 1,430,460 | 1,541,462 | 1,694,096 | |||
GROSS PROFIT | 2,313,570 | 2,575,435 | 2,816,709 | |||
Stores and Distribution Expense | 1,703,051 | 1,907,687 | 1,980,519 | |||
Marketing, General and Administrative Expense | 458,820 | 481,784 | 473,883 | |||
Restructuring Charges | 8,431 | 81,500 | 0 | |||
Asset Impairment | 44,988 | 46,715 | 7,407 | |||
Other Operating Income, Net | -15,239 | -23,074 | -19,333 | |||
OPERATING INCOME | 113,519 | [1] | 80,823 | [2] | 374,233 | [3] |
Interest Expense, Net | 14,365 | 7,546 | 7,288 | |||
INCOME BEFORE TAXES | 99,154 | 73,277 | 366,945 | |||
Tax Expense | 47,333 | 18,649 | 129,934 | |||
NET INCOME | 51,821 | 54,628 | 237,011 | |||
NET INCOME PER SHARE: | ||||||
BASIC | $0.72 | $0.71 | $2.89 | |||
DILUTED | $0.71 | $0.69 | $2.85 | |||
WEIGHTED-AVERAGE SHARES OUTSTANDING: | ||||||
BASIC | 71,785 | 77,157 | 81,940 | |||
DILUTED | 72,937 | 78,666 | 83,175 | |||
DIVIDENDS DECLARED PER SHARE | $0.80 | $0.80 | $0.70 | |||
OTHER COMPREHENSIVE (LOSS) INCOME | ||||||
Foreign Currency Translation Adjustments | -77,929 | -12,683 | -427 | |||
Unrealized Gain (Loss) on Derivative Financial Instruments, net of taxes | 15,266 | 5,054 | -19,152 | |||
Other Comprehensive Loss | -62,663 | -7,629 | -19,579 | |||
COMPREHENSIVE (LOSS) INCOME | ($10,842) | $46,999 | $217,432 | |||
[1] | Includes charges related to asset impairment, lease terminations and store closures, the restructuring of the Gilly Hicks brand, the Company's profit improvement initiative, CEO transition costs and corporate governance matters of which $6.1 million is included in U.S. stores, $43.6 million is included in International Stores, $0.4 million is included in Direct-to-Consumer Operations and $28.1 million is included in Other for Fiscal 2014. | |||||
[2] | Includes charges related to asset impairment, restructuring plans of the Gilly Hicks brand and the Company's profit improvement initiative of $94.9 million for U.S. Stores, $33.3 million for International Stores and $13.8 million for Other for Fiscal 2013. | |||||
[3] | Includes charges for asset impairments of $7.4 million for U.S. Stores for Fiscal 2012. |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and Equivalents | $520,708 | $600,116 |
Receivables | 52,910 | 67,965 |
Inventories | 460,794 | 530,192 |
Deferred Income Taxes, Net | 13,986 | 21,835 |
Other Current Assets | 116,574 | 100,458 |
TOTAL CURRENT ASSETS | 1,164,972 | 1,320,566 |
PROPERTY AND EQUIPMENT, NET | 967,001 | 1,131,341 |
OTHER ASSETS | 373,194 | 399,090 |
TOTAL ASSETS | 2,505,167 | 2,850,997 |
CURRENT LIABILITIES: | ||
Accounts Payable | 141,685 | 130,715 |
Accrued Expenses | 282,736 | 322,834 |
Short-Term Portion of Deferred Lease Credits | 26,629 | 36,165 |
Income Taxes Payable | 32,804 | 63,508 |
Short-Term Portion of Borrowings, Net | 2,102 | 15,000 |
TOTAL CURRENT LIABILITIES | 485,956 | 568,222 |
LONG-TERM LIABILITIES: | ||
Long-Term Portion of Deferred Lease Credits | 106,393 | 140,799 |
Long-Term Portion of Borrowings, Net | 291,310 | 120,000 |
Leasehold Financing Obligations | 50,521 | 60,726 |
Other Liabilities | 181,286 | 231,757 |
TOTAL LONG-TERM LIABILITIES | 629,510 | 553,282 |
STOCKHOLDERS’ EQUITY: | ||
Class A Common Stock — $0.01 par value: 150,000 shares authorized and 103,300 shares issued at each of January 31, 2015 and February 1, 2014 | 1,033 | 1,033 |
Paid-In Capital | 434,137 | 433,620 |
Retained Earnings | 2,550,673 | 2,556,270 |
Accumulated Other Comprehensive Loss, net of tax | -83,580 | -20,917 |
Treasury Stock, at Average Cost — 33,948 and 26,898 shares at January 31, 2015 and February 1, 2014, respectively | -1,512,562 | -1,240,513 |
TOTAL STOCKHOLDERS’ EQUITY | 1,389,701 | 1,729,493 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $2,505,167 | $2,850,997 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
STOCKHOLDERS’ EQUITY: | ||
Treasury Stock shares, at Average Cost | 33,948,000 | 26,898,000 |
Common Stock, shares issued | 103,300,000 | 103,300,000 |
Common Class A | ||
STOCKHOLDERS’ EQUITY: | ||
Common Stock, par value (in dollars per share) | 0.01 | 0.01 |
Common Stock, shares authorized | 150,000,000 | 150,000,000 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock |
In Thousands | ||||||
Beginning Balance at Jan. 28, 2012 | $1,931,335 | $1,033 | $369,171 | $2,389,614 | $6,291 | ($834,774) |
Beginning Balance, Shares Outstanding at Jan. 28, 2012 | 85,638 | 17,662 | ||||
Net Income | 237,011 | 237,011 | ||||
Purchase of Common Stock | -321,665 | -321,665 | ||||
Purchase of Common Stock, Shares | -7,548 | 7,548 | ||||
Dividends | -57,634 | -57,634 | ||||
Share-Based Compensation Issuances and Exercises | -3,656 | -18,356 | -1,730 | 16,430 | ||
Share-based Compensation Issuances and Exercises, Shares | 355 | -355 | ||||
Tax Effect of Share-Based Compensation Issuances and Exercises | -466 | -466 | ||||
Share-based Compensation Expense | 52,922 | 52,922 | ||||
Net Change in Unrealized Gains or Losses on Derivative Financial Instruments | -19,152 | -19,152 | ||||
Foreign Currency Translation Adjustments | -427 | -427 | ||||
Ending Balance at Feb. 02, 2013 | 1,818,268 | 1,033 | 403,271 | 2,567,261 | -13,288 | -1,140,009 |
Ending Balance, Shares Outstanding at Feb. 02, 2013 | 78,445 | 24,855 | ||||
Net Income | 54,628 | 54,628 | ||||
Purchase of Common Stock | -115,806 | -115,806 | ||||
Purchase of Common Stock, Shares | -2,383 | 2,383 | ||||
Dividends | -61,923 | -61,923 | ||||
Share-Based Compensation Issuances and Exercises | -7,757 | -19,363 | -3,696 | 15,302 | ||
Share-based Compensation Issuances and Exercises, Shares | 340 | -340 | ||||
Tax Effect of Share-Based Compensation Issuances and Exercises | -3,804 | -3,804 | ||||
Share-based Compensation Expense | 53,516 | 53,516 | ||||
Net Change in Unrealized Gains or Losses on Derivative Financial Instruments | 5,054 | 5,054 | ||||
Foreign Currency Translation Adjustments | -12,683 | -12,683 | ||||
Ending Balance at Feb. 01, 2014 | 1,729,493 | 1,033 | 433,620 | 2,556,270 | -20,917 | -1,240,513 |
Ending Balance, Shares Outstanding at Feb. 01, 2014 | 76,402 | 26,898 | ||||
Net Income | 51,821 | 51,821 | ||||
Purchase of Common Stock | -285,038 | -285,038 | ||||
Purchase of Common Stock, Shares | -7,324 | 7,324 | ||||
Dividends | -57,362 | -57,362 | ||||
Share-Based Compensation Issuances and Exercises | -4,951 | -17,884 | -56 | 12,989 | ||
Share-based Compensation Issuances and Exercises, Shares | 274 | -274 | ||||
Tax Effect of Share-Based Compensation Issuances and Exercises | -4,626 | -4,626 | ||||
Share-based Compensation Expense | 23,027 | 23,027 | ||||
Net Change in Unrealized Gains or Losses on Derivative Financial Instruments | 15,266 | 15,266 | ||||
Foreign Currency Translation Adjustments | -77,929 | -77,929 | ||||
Ending Balance at Jan. 31, 2015 | $1,389,701 | $1,033 | $434,137 | $2,550,673 | ($83,580) | ($1,512,562) |
Ending Balance, Shares Outstanding at Jan. 31, 2015 | 69,352 | 33,948 |
Consolidated_Statement_of_Stoc1
Consolidated Statement of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, dividends declared (in dollars per share) | $0.80 | $0.80 | $0.70 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
OPERATING ACTIVITIES: | ||||
Net Income | $51,821 | $54,628 | $237,011 | |
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Depreciation and Amortization | 226,421 | 235,240 | 224,245 | |
Non-Cash Charge for Asset Impairment | 47,084 | 84,655 | 7,407 | |
Loss on Disposal / Write-off of Assets | 5,794 | 16,909 | 11,866 | |
Lessor Construction Allowances | 13,182 | 20,523 | 22,522 | |
Amortization of Deferred Lease Credits | -38,437 | -45,895 | -45,942 | |
Provision for (Benefit from) Deferred Income Taxes | 1,676 | -41,263 | -21,543 | |
Share-Based Compensation | 23,027 | 53,516 | 52,922 | |
Gain on Auction Rate Securities | 0 | 0 | -2,454 | |
Changes in Assets and Liabilities: | ||||
Inventories | 62,854 | -103,304 | 253,650 | |
Accounts Payable and Accrued Expenses | -37,394 | -73,749 | -34,692 | |
Income Taxes | -34,659 | -55,456 | 35,964 | |
Other Assets | 6,888 | 44,138 | -34,318 | |
Other Liabilities | -15,777 | -14,449 | -22,467 | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 312,480 | 175,493 | 684,171 | |
INVESTING ACTIVITIES: | ||||
Capital Expenditures | -174,624 | [1] | -163,924 | -339,862 |
Proceeds from Sales of Marketable Securities | 0 | 0 | 101,963 | |
Other Investing | -450 | -9,937 | -9,339 | |
NET CASH USED FOR INVESTING ACTIVITIES | -175,074 | -173,861 | -247,238 | |
FINANCING ACTIVITIES: | ||||
Proceeds from Share-Based Compensation | 254 | 213 | 2,676 | |
Excess Tax Benefit from Share-Based Compensation | 304 | 2,480 | 1,198 | |
Proceeds from Borrowings | 357,000 | 150,000 | 135,000 | |
Repayment of Borrowings | -195,750 | -15,000 | -135,000 | |
Debt Issuance Costs | -861 | |||
Purchase of Treasury Stock | -285,038 | -115,806 | -321,665 | |
Dividends Paid | -57,362 | -61,923 | -57,634 | |
Other Financing | 0 | -795 | -4,646 | |
NET CASH USED FOR FINANCING ACTIVITIES | -181,453 | -40,831 | -380,071 | |
EFFECT OF EXCHANGE RATES ON CASH | -35,361 | -4,190 | 3,148 | |
NET (DECREASE) INCREASE IN CASH AND EQUIVALENTS: | -79,408 | -43,389 | 60,010 | |
Cash and Equivalents, Beginning of Period | 600,116 | 643,505 | 583,495 | |
CASH AND EQUIVALENTS, END OF PERIOD | 520,708 | 600,116 | 643,505 | |
SIGNIFICANT NON-CASH INVESTING ACTIVITIES: | ||||
Change in Accrual for Construction in Progress | 6,525 | 10,820 | -12,919 | |
SUPPLEMENTAL INFORMATION: | ||||
Cash Paid for Interest | $18,609 | $4,565 | $4,217 | |
[1] | Capital expenditures of $35.6 million related to the conversion of one of the Company's Columbus, Ohio distribution centers to a dedicated Direct-to-Consumer distribution center are included in Direct-to-Consumer Operations. |
Nature_of_Business
Nature of Business | 12 Months Ended |
Jan. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS | Abercrombie & Fitch Co. (“A&F”), a company incorporated in Delaware in 1996, through its subsidiaries (collectively, A&F and its subsidiaries are referred to as “Abercrombie & Fitch” or the “Company”), is a specialty retailer that operates stores and direct-to-consumer operations. Through these channels, the Company sells a broad array of products, including: casual sportswear apparel, including knit and woven shirts, graphic t-shirts, fleece, jeans and woven pants, shorts, sweaters and outerwear; personal care products; and accessories for men, women and kids under the Abercrombie & Fitch, abercrombie kids, and Hollister brands. The Company also sells bras, underwear, personal care products, sleepwear and at-home products for girls through Hollister under the Gilly Hicks brand. The Company operates stores in North America, Europe, Asia, Australia and the Middle East and direct-to-consumer operations in North America, Europe and Asia that service its brands throughout the world. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
PRINCIPLES OF CONSOLIDATION | ||||||||||||
The consolidated financial statements include the accounts of A&F and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | ||||||||||||
FISCAL YEAR | ||||||||||||
The Company’s fiscal year ends on the Saturday closest to January 31. All references herein to “Fiscal 2014” represent the 52-week fiscal year ended January 31, 2015; to “Fiscal 2013” represent the 52-week fiscal year ended February 1, 2014; and to “Fiscal 2012” represent the 53-week fiscal year ended February 2, 2013. In addition, all references herein to “Fiscal 2015” represent the 52-week fiscal year that will end on January 30, 2016. | ||||||||||||
REVISIONS AND RECLASSIFICATIONS | ||||||||||||
The fifty-two week periods ended January 31, 2015 and February 1, 2014 included the correction of certain immaterial errors relating to prior periods. The out-of-period correction of errors resulted in a reduction to income before taxes of $2.9 million, or $1.8 million after tax, and an unrelated tax charge of $0.4 million, for a combined reduction to net income of $2.2 million for the fifty-two week period ended January 31, 2015. The out-of-period correction of errors resulted in an increase to income before taxes of $2.6 million, or $0.8 million after tax, and an unrelated tax charge of $0.9 million, for a combined reduction to net income of $0.1 million for the fifty-two week period ended February 1, 2014. In addition, amounts recorded out-of-period included a reduction to net cash provided by operating activities of $11.8 million for the fifty-two week period ended January 31, 2015. The Company does not believe these corrections were material to any current or prior interim or annual periods that were affected. | ||||||||||||
USE OF ESTIMATES | ||||||||||||
The preparation of financial statements, in conformity with accounting principles generally accepted in the United States, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period. Due to the inherent uncertainty involved with estimates, actual results may differ. | ||||||||||||
CASH AND EQUIVALENTS | ||||||||||||
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. | ||||||||||||
RESTRICTED CASH | ||||||||||||
Any cash that is legally restricted from use is recorded in Other Assets on the Consolidated Balance Sheets. The restricted cash balance was $14.8 million and $26.7 million on January 31, 2015 and February 1, 2014, respectively. 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 | ||||||||||||
See Note 4, “RABBI TRUST ASSETS.” | ||||||||||||
RECEIVABLES | ||||||||||||
Receivables primarily include credit card receivables, construction allowances, value added tax (“VAT”) receivables and other tax credits or refunds. | ||||||||||||
As part of the normal course of business, the Company has approximately three to four days of proceeds from sales transactions outstanding with its third-party credit card vendors at any point. The Company classifies these outstanding balances as credit card receivables. Construction allowances are recorded for certain store lease agreements for improvements completed by the Company. VAT receivables are payments the Company has made on purchases of goods that will be recovered as those goods are sold. | ||||||||||||
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 in the Consolidated Statements of Operations and Comprehensive (Loss) Income. 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 $12.7 million and $22.1 million as of January 31, 2015 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 $11.4 million and $13.6 million at January 31, 2015 and February 1, 2014, respectively. | ||||||||||||
The inventory balance, net of reserves, was $460.8 million and $530.2 million at January 31, 2015 and February 1, 2014, respectively. These balances included inventory in transit from vendors of $56.1 million and $76.4 million at January 31, 2015 and February 1, 2014, respectively. Inventory in transit is considered to be merchandise owned by the Company that has not yet been received at a Company distribution center. | ||||||||||||
OTHER CURRENT ASSETS | ||||||||||||
Other current assets include prepaid rent, current store supplies, derivative contracts and other prepaids. | ||||||||||||
PROPERTY AND EQUIPMENT | ||||||||||||
Depreciation and amortization of property and equipment are computed for financial reporting purposes on a straight-line basis using the following service lives: | ||||||||||||
Category of Property and Equipment | Service Lives | |||||||||||
Information technology | 3 - 7 years | |||||||||||
Furnitures, fixtures and equipment | 3 - 15 years | |||||||||||
Leasehold improvements | 3 - 15 years | |||||||||||
Other property and equipment | 3 - 20 years | |||||||||||
Buildings | 30 years | |||||||||||
Leasehold improvements are amortized over either their respective lease terms or their service lives, whichever is shorter. The cost of assets sold or retired and the related accumulated depreciation or amortization are removed from the accounts with any resulting gain or loss included in net income. Maintenance and repairs are charged to expense as incurred. Major remodels and improvements that extend the service lives of the related assets are capitalized. | ||||||||||||
Long-lived assets, primarily comprising of property and equipment, are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset may not be recoverable. On at least a quarterly basis, the Company reviews for indicators of impairment. In addition, the Company conducts an annual impairment analysis in the fourth quarter of each year. For purposes of the annual review, the Company reviews long-lived assets associated with stores that have an operating loss in the current year or otherwise display an indicator of impairment. The Company tests long-lived assets for impairments in the quarter in which a triggering event occurs. See Note 17, "SEGMENT REPORTING," for additional information about how store operating income or loss is determined. | ||||||||||||
The reviews are conducted at the individual store level, which is the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. | ||||||||||||
The impairment evaluation is performed as a two-step test. First, the Company utilizes an undiscounted future cash flow model to test the individual asset groups for recoverability. If the net carrying value of the asset group exceeds the undiscounted cash flows, the Company proceeds to step two. Under step two, an impairment loss is recognized for the excess of net book value over the fair value of the assets. Factors used in the evaluation include, but are not limited to, management’s plans for future operations, recent operating results and projected cash flows. See Note 6, “PROPERTY AND EQUIPMENT, NET,” for further discussion. | ||||||||||||
The Company expenses all internal-use software costs incurred in the preliminary project stage and capitalizes certain direct costs associated with the development and purchase of internal-use software within property and equipment. Capitalized costs are amortized on a straight-line basis over the estimated useful lives of the software, generally not exceeding seven years. | ||||||||||||
INCOME TAXES | ||||||||||||
Income taxes are calculated using the asset and liability method. Deferred tax assets and liabilities are recognized based on the difference between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using current enacted tax rates in effect for the years in which those temporary differences are expected to reverse. Inherent in the determination of the Company's income tax liability and related deferred income tax balances are certain judgments and interpretations of enacted tax law and published guidance with respect to applicability to the Company's operations. The Company is subject to audit by taxing authorities, usually several years after tax returns have been filed, and the taxing authorities may have differing interpretations of tax laws. Valuation allowances are established to reduce deferred tax assets to the amount expected to be realized when it is more likely than not that some portion or all of the deferred tax assets will not be realized. | ||||||||||||
The Company records tax expense or benefit that does not relate to ordinary income in the current fiscal year discretely in the period in which it occurs. Examples of such types of discrete items include, but are not limited to: changes in estimates of the outcome of tax matters related to prior years, assessments of valuation allowances, return-to-provision adjustments, tax-exempt income, and the settlement of tax audits and changes in tax legislation. | ||||||||||||
See Note 11, “INCOME TAXES,” for a discussion regarding the Company’s policies for uncertain tax positions. | ||||||||||||
FOREIGN CURRENCY TRANSLATION AND TRANSACTIONS | ||||||||||||
The functional currency of the Company’s foreign subsidiaries is generally the local currencies in which they operate. Assets and liabilities denominated in foreign currencies are translated into U.S. Dollars (the reporting currency) at the exchange rate prevailing at the balance sheet date. Equity accounts denominated in foreign currencies are translated into U.S. Dollars at historical exchange rates. Revenues and expenses denominated in foreign currencies are translated into U.S. Dollars at the monthly average exchange rate for the period. Gains and losses resulting from foreign currency transactions are included in the results of operations; whereas, translation adjustments and inter-company loans of a long-term investment nature are reported as an element of Other Comprehensive (Loss) Income. Foreign currency transactions resulted in a loss of $2.0 million for Fiscal 2014 and a gain of $2.9 million and $3.3 million for Fiscal 2013 and Fiscal 2012, respectively. | ||||||||||||
DERIVATIVES | ||||||||||||
See Note 13, “DERIVATIVES.” | ||||||||||||
CONTINGENCIES | ||||||||||||
The Company 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. | ||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||
At January 31, 2015 and February 1, 2014, there were 150.0 million shares of A&F’s Class A Common Stock, $0.01 par value, authorized, of which 69.4 million and 76.4 million were outstanding at January 31, 2015 and February 1, 2014, respectively, and 106.4 million shares of Class B Common Stock, $0.01 par value, authorized, none of which were outstanding at January 31, 2015 and February 1, 2014. | ||||||||||||
Holders of Class A Common Stock generally have identical rights to holders of Class B Common Stock, except holders of Class A Common Stock are entitled to one vote per share while holders of Class B Common Stock are entitled to three votes per share on all matters submitted to a vote of stockholders. | ||||||||||||
REVENUE RECOGNITION | ||||||||||||
The Company recognizes store sales at the time the customer takes possession of the merchandise. Direct-to-consumer sales are recorded based on an estimated date for customer receipt of merchandise, which is based on shipping terms and historical delivery transit times. Amounts relating to shipping and handling billed to customers in a sale transaction are classified as Net Sales and the related direct shipping and handling costs are classified as Stores and Distribution Expense in the Company's Consolidated Statements of Operations and Comprehensive (Loss) Income. Sales are recorded net of an allowance for estimated returns, associate discounts, and promotions and other similar customer incentives. The Company estimates reserves for sales returns based on historical experience. The sales return reserve was $9.5 million, $8.0 million and $9.3 million at January 31, 2015, February 1, 2014 and February 2, 2013, respectively. | ||||||||||||
The Company sells gift cards in its stores and through direct-to-consumer operations. The Company accounts for gift cards sold to customers by recognizing a liability at the time of sale. Gift cards sold to customers do not expire or lose value over periods of inactivity. The liability remains on the Company’s books until the Company recognizes income from gift cards. Income from gift cards is recognized at the earlier of redemption by the customer (recognized as Net Sales) or when the Company determines that the likelihood of redemption is remote, referred to as gift card breakage (recognized as Other Operating Income). The Company determines the probability of the gift card being redeemed to be remote based on historical redemption patterns. The gift card liability was $36.9 million and $42.5 million at January 31, 2015 and February 1, 2014, respectively. | ||||||||||||
The Company is not required by law to escheat the value of unredeemed gift cards to the states in which it operates. The Company recognized in Other Operating Income gift card breakage of $5.8 million, $8.8 million and $6.9 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | ||||||||||||
The Company does not include tax amounts collected as part of the sales transaction in its net sales results. | ||||||||||||
COST OF GOODS SOLD | ||||||||||||
Cost of goods sold primarily comprises cost incurred to ready inventory for sale, including product costs, freight, and import cost, as well as provision for reserves for shrink and lower of cost or market. Gains and losses associated with foreign currency exchange contracts related to hedging of inventory purchases are also recognized in cost of goods sold when the inventory being hedged is sold. | ||||||||||||
STORES AND DISTRIBUTION EXPENSE | ||||||||||||
Stores and distribution expense includes store payroll, store management, rent, utilities and other landlord expenses, depreciation and amortization, repairs and maintenance and other store support functions, as well as Direct-to-Consumer expense and Distribution Center (“DC”) expense. | ||||||||||||
Shipping and handling costs, including costs incurred to store, move and prepare merchandise for shipment, and costs incurred to physically move merchandise to customers, associated with direct-to-consumer operations were $108.1 million, $93.4 million and $78.6 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. Handling costs, including costs incurred to store, move and prepare merchandise for shipment to stores were $52.2 million, $53.9 million and $59.4 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. These amounts are recorded in Stores and Distribution Expense in the Company's Consolidated Statements of Operations and Comprehensive (Loss) Income. Costs incurred to physically move merchandise to stores is recorded in Cost of Goods Sold in the Company's Consolidated Statements of Operations and Comprehensive (Loss) Income. | ||||||||||||
MARKETING, GENERAL & ADMINISTRATIVE EXPENSE | ||||||||||||
Marketing, general and administrative expense includes: photography and social media; store marketing; home office compensation, except for those departments included in stores and distribution expense; information technology; outside services such as legal and consulting; relocation; recruiting; samples and travel expenses. | ||||||||||||
RESTRUCTURING CHARGES | ||||||||||||
Restructuring charges consist of exit costs and other costs associated with the reorganization of the Company's operations, including employee termination costs, lease contract termination costs, impairment of assets, and any other qualifying exit costs. Costs associated with exit or disposal activities are recorded when the liability is incurred or when such costs are deemed probable and estimable and represent the Company's best estimates. | ||||||||||||
OTHER OPERATING INCOME, NET | ||||||||||||
Other operating income, net included income of $10.2 million, $9.0 million and $4.8 million related to insurance recoveries for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively; $5.8 million, $8.8 million and $6.9 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively, related to gift card balances whose likelihood of redemption has been determined remote and a loss of $2.0 million in Fiscal 2014, and gains of $2.9 million and $3.3 million in Fiscal 2013 and Fiscal 2012, respectively, attributed to foreign currency transactions. Other operating income, net for Fiscal 2012 also included a gain of $2.5 million related to the net impact of changes in valuation related to other-than-temporary impairments associated with auction rate securities ("ARS"). | ||||||||||||
WEBSITE AND ADVERTISING COSTS | ||||||||||||
Advertising costs are comprised of in-store photography, e-mail distribution and other digital direct advertising, and other media advertising. Beginning in Fiscal 2014, costs associated with cross-channel brand engagement campaigns and marketing events have been classified as advertising costs. Accordingly, the advertising expense disclosures for Fiscal 2013 and Fiscal 2012 have been revised to reflect this change. The production of in-store photography and signage are expensed when the marketing campaign commences as a component of Marketing, General and Administrative Expense on the Consolidated Statements of Operations and Comprehensive (Loss) Income. Website and other advertising costs related specifically to direct-to-consumer operations are expensed as incurred as a component of Stores and Distribution Expense on the Consolidated Statements of Operations and Comprehensive (Loss) Income. All other advertising costs are expensed as incurred as a component of Marketing, General and Administrative Expense on the Consolidated Statements of Operations and Comprehensive (Loss) Income. The Company recognized $84.6 million, $68.1 million and $59.0 million in advertising expense in Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | ||||||||||||
LEASED FACILITIES | ||||||||||||
The Company leases property for its stores under operating leases. Lease agreements may contain construction allowances, rent escalation clauses and/or contingent rent provisions. | ||||||||||||
Annual store rent is comprised of a fixed minimum amount and/or contingent rent based on a percentage of sales. For construction allowances, the Company records a deferred lease credit on the Consolidated Balance Sheets and amortizes the deferred lease credit as a reduction of rent expense on the Consolidated Statements of Operations and Comprehensive (Loss) Income over the term of the lease. For scheduled rent escalation clauses during the lease term, the Company records minimum rental expense on a straight-line basis over the term of the lease on the Consolidated Statements of Operations and Comprehensive (Loss) Income. The difference between rent expense and the amounts paid under the lease, less amounts attributable to the repayment of construction allowances recorded as deferred rent, is included in Accrued Expenses and Other Liabilities on the Consolidated Balance Sheets. The term over which the Company amortizes construction allowances and minimum rental expenses on a straight-line basis begins on the date of initial possession, which is generally when the Company enters the space and begins construction. | ||||||||||||
Certain leases provide for contingent rents, which are determined as a percentage of gross sales. The Company records a contingent rent liability in Accrued Expenses on the Consolidated Balance Sheets, and the corresponding rent expense on the Consolidated Statements of Operations and Comprehensive (Loss) Income on a ratable basis over the measurement period when it is determined that achieving the specified levels during the fiscal year is probable. In addition, most leases require payment of real estate taxes, insurance and certain common area maintenance costs in addition to future minimum lease payments. | ||||||||||||
A summary of rent expense follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Store rent: | ||||||||||||
Fixed minimum(1) | $ | 432,794 | $ | 464,937 | $ | 414,061 | ||||||
Contingent | 8,886 | 8,624 | 16,828 | |||||||||
Deferred lease credits amortization | (38,437 | ) | (45,899 | ) | (45,926 | ) | ||||||
Total store rent expense | 403,243 | 427,662 | 384,963 | |||||||||
Buildings, equipment and other | 4,619 | 4,987 | 6,259 | |||||||||
Total rent expense | $ | 407,862 | $ | 432,649 | $ | 391,222 | ||||||
(1) Includes lease termination fees of $12.4 million, $39.2 million and $3.4 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. For Fiscal 2014 and Fiscal 2013, lease termination fees of $6.8 million and $39.1 million, respectively, related to the Gilly Hicks restructuring. | ||||||||||||
At January 31, 2015, the Company was committed to non-cancelable leases with remaining terms of one to 16 years. Excluded from the obligations below are portions of lease terms that are currently cancelable at the Company's discretion without condition. While included in the obligations below, in many instances the Company has options to terminate certain leases if stated sales volume levels are not met or the Company ceases operations in a given country, which may be subject to lease termination policies. A summary of operating lease commitments, including leasehold financing obligations, under non-cancelable leases follows (in thousands): | ||||||||||||
Fiscal 2015 | $ | 409,046 | ||||||||||
Fiscal 2016 | $ | 366,909 | ||||||||||
Fiscal 2017 | $ | 279,960 | ||||||||||
Fiscal 2018 | $ | 210,674 | ||||||||||
Fiscal 2019 | $ | 165,307 | ||||||||||
Thereafter | $ | 525,286 | ||||||||||
LEASEHOLD FINANCING OBLIGATIONS | ||||||||||||
In certain lease arrangements, the Company is involved in, or is deemed to be involved in, the construction or modification 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, including the portion funded by the landlord, and an amount related to the value attributed to the pre-existing leased building in Property and Equipment, Net, and a corresponding 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 allocates a portion of its rent obligation to the assets which are owned for accounting purposes as a reduction of the financing obligation and interest expense. As of January 31, 2015 and February 1, 2014, the Company had $50.5 million and $60.7 million, respectively, of long-term liabilities related to leasehold financing obligations. Total interest expense related to landlord financing obligations was $6.2 million, $6.6 million and $6.8 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | ||||||||||||
STORE PRE-OPENING EXPENSES | ||||||||||||
Pre-opening expenses related to new store openings are expensed as incurred and are reflected as a component of "Stores and Distribution Expense." | ||||||||||||
DESIGN AND DEVELOPMENT COSTS | ||||||||||||
Costs to design and develop the Company’s merchandise are expensed as incurred and are reflected as a component of “Marketing, General and Administrative Expense.” | ||||||||||||
NET INCOME PER SHARE | ||||||||||||
Net income per basic and diluted share is computed based on the weighted-average number of outstanding shares of Class A Common Stock (“Common Stock”). | ||||||||||||
Weighted-Average Shares Outstanding and Anti-Dilutive Shares (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Shares of Common Stock issued | 103,300 | 103,300 | 103,300 | |||||||||
Treasury shares | (31,515 | ) | (26,143 | ) | (21,360 | ) | ||||||
Weighted-Average — Basic shares | 71,785 | 77,157 | 81,940 | |||||||||
Dilutive effect of share-based compensation awards | 1,152 | 1,509 | 1,235 | |||||||||
Weighted-Average — Diluted shares | 72,937 | 78,666 | 83,175 | |||||||||
Anti-dilutive shares (1) | 6,144 | 4,630 | 5,228 | |||||||||
(1) | Reflects the number of shares subject to outstanding share-based compensation awards but excluded from the computation of net income per diluted share because the impact would be anti-dilutive. | |||||||||||
SHARE-BASED COMPENSATION | ||||||||||||
See Note 3, “SHARE-BASED COMPENSATION.” | ||||||||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||||||||
In July 2013, the Financial Accounting Standards Board ("FASB") issued Account Standards Update ("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 Accounting Standards Codification ("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 were effective at the beginning of Fiscal 2014. The adoption of this guidance 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)." The new ASC guidance 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 which the entity expects to be entitled to in exchange for those goods or services. This guidance is effective for the Company beginning Fiscal 2017, and is to be applied retrospectively, with early application not permitted. The Company is currently evaluating the potential impact of this standard. | ||||||||||||
In June 2014, FASB issued ASU No. 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period," which amends ASC 718, "Compensation—Stock Compensation." The amendment provides guidance on the treatment of share-based payments awards with a specific performance target, requiring that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This guidance is effective for the Company at the beginning of Fiscal 2016 with early adoption permitted. The adoption of this amendment is not expected to have a material impact on the Company's consolidated financial statements. | ||||||||||||
In February 2015, FASB issued ASU No. 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis." These amendments provide guidance which change the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance is effective for the Company at the beginning of Fiscal 2017 with early adoption permitted. The adoption of this amendment is not expected to have a material impact on the Company's consolidated financial statements. |
Share_Based_Compensation
Share Based Compensation | 12 Months Ended | |||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION | |||||||||||||||||||||||
Financial Statement Impact | ||||||||||||||||||||||||
The Company recognized share-based compensation expense of $23.0 million, $53.5 million and $52.9 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. The Company also recognized $8.6 million, $20.3 million and $20.1 million in tax benefits related to share-based compensation for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | ||||||||||||||||||||||||
The fair value of share-based compensation awards is recognized as compensation expense primarily on a straight-line basis over the awards’ requisite service period, net of estimated forfeitures, with the exception of performance share awards. Performance share award expense is primarily recognized in the performance period of the awards' requisite service period. For awards that are expected to result in a tax deduction, a deferred tax asset is recorded in the period in which share-based compensation expense is recognized. A current tax deduction arises upon the vesting of restricted stock units and performance share awards or the exercise of stock options and stock appreciation rights and is principally measured at the award’s intrinsic value. If the tax deduction is greater than the recorded deferred tax asset, the tax benefit associated with any excess deduction is considered an excess tax benefit and is recognized as additional paid-in capital. If the tax deduction is less than the recorded deferred tax asset, the resulting difference, or shortfall, is first charged to additional paid-in capital, to the extent of the windfall pool of excess tax benefits, with any remainder recognized as tax expense. The Company’s windfall pool of excess tax benefits as of January 31, 2015, is sufficient to fully absorb any shortfall which may develop associated with awards currently outstanding. | ||||||||||||||||||||||||
The Company adjusts share-based compensation expense on a quarterly basis for actual forfeitures and for changes to the estimate of expected award forfeitures. The effect of adjusting the forfeiture rate is recognized in the period the forfeiture estimate is changed. The effect of adjustments for forfeitures was $2.6 million, $2.3 million and $1.3 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | ||||||||||||||||||||||||
The Company issues shares of Common Stock from treasury stock upon exercise of stock options and stock appreciation rights and vesting of restricted stock units, including those converted from performance share awards. As of January 31, 2015, the Company had sufficient treasury stock available to settle stock options, stock appreciation rights, restricted stock units and performance share awards outstanding. Settlement of stock awards in Common Stock also requires that the Company has sufficient shares available in stockholder-approved plans at the applicable time. | ||||||||||||||||||||||||
In the event, at each reporting date during which share-based compensation awards remain outstanding, there are not sufficient shares of Common Stock available to be issued under the Amended and Restated Abercrombie & Fitch Co. 2007 Long-Term Incentive Plan (the “2007 LTIP”) and the Abercrombie & Fitch Co. 2005 Long-Term Incentive Plan (the “2005 LTIP”), or under a successor or replacement plan, the Company may be required to designate some portion of the outstanding awards to be settled in cash, which would result in liability classification of such awards. The fair value of liability-classified awards is re-measured each reporting date until such awards no longer remain outstanding or until sufficient shares of Common Stock become available to be issued under the existing plans or under a successor or replacement plan. As long as the awards are required to be classified as a liability, the change in fair value would be recognized in current period expense based on the requisite service period rendered. | ||||||||||||||||||||||||
Plans | ||||||||||||||||||||||||
As of January 31, 2015, the Company had two primary share-based compensation plans: the 2005 LTIP, under which the Company grants stock appreciation rights, restricted stock units and performance share awards to associates of the Company and non-associate members of the Company's Board of Directors, and the 2007 LTIP, under which the Company grants stock appreciation rights, restricted stock units and performance share awards to associates of the Company. The Company also has four other share-based compensation plans under which it granted stock options and restricted stock units to associates of the Company and non-associate members of the the Company's Board of Directors in prior years. | ||||||||||||||||||||||||
The 2007 LTIP, a stockholder-approved plan, permits the Company to annually grant awards covering up to 2.0 million of underlying shares of the Company's Common Stock for each type of award, per eligible participant, plus any unused annual limit from prior years. The 2005 LTIP, a stockholder-approved plan, permits the Company to annually grant awards covering up to 250,000 of underlying shares of the Company's Common Stock for each award type to any associate of the Company (other than the Chief Executive Officer (the "CEO")) who is subject to Section 16 of the Securities Exchange Act of 1934, as amended, at the time of the grant, plus any unused annual limit from prior years. In addition, any non-associate director of the Company is eligible to receive awards under the 2005 LTIP. Under both plans, stock appreciation rights and restricted stock units vest primarily over four years for associates, while performance share awards are primarily earned and vest over the performance period. Under the 2005 LTIP, restricted stock units typically vest after approximately one year for non-associate directors of the Company. Under both plans, stock options have a ten-year term and stock appreciation rights have up to a ten-year term, subject to forfeiture under the terms of the plans. The plans provide for accelerated vesting if there is a change of control as defined in the plans. | ||||||||||||||||||||||||
Stock Options | ||||||||||||||||||||||||
The Company did not grant any stock options during Fiscal 2014, Fiscal 2013 and Fiscal 2012. Below is a summary of stock option activity for Fiscal 2014: | ||||||||||||||||||||||||
Number of | Weighted- | Aggregate | Weighted-Average | |||||||||||||||||||||
Underlying | Average | Intrinsic Value | Remaining | |||||||||||||||||||||
Shares | Exercise Price | Contractual Life | ||||||||||||||||||||||
Outstanding at February 1, 2014 | 532,400 | $ | 65.37 | |||||||||||||||||||||
Granted | — | — | ||||||||||||||||||||||
Exercised | (7,500 | ) | 33.74 | |||||||||||||||||||||
Forfeited or expired | (196,800 | ) | 67.79 | |||||||||||||||||||||
Outstanding at January 31, 2015 | 328,100 | $ | 64.64 | $ | 310,100 | 2.6 | ||||||||||||||||||
Stock options exercisable at January 31, 2015 | 328,100 | $ | 64.64 | $ | 310,100 | 2.6 | ||||||||||||||||||
The total intrinsic value of stock options exercised was insignificant during Fiscal 2014 and Fiscal 2013, and was $2.0 million during Fiscal 2012. | ||||||||||||||||||||||||
The grant date fair value of stock options that vested was insignificant during Fiscal 2014 and Fiscal 2013, and was $1.3 million during Fiscal 2012. | ||||||||||||||||||||||||
As of January 31, 2015, all compensation cost related to currently outstanding stock options had been fully recognized. | ||||||||||||||||||||||||
Stock Appreciation Rights | ||||||||||||||||||||||||
The following table summarizes stock appreciation rights activity for Fiscal 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 | 512,216 | 36.31 | ||||||||||||||||||||||
Exercised | (92,475 | ) | 26.92 | |||||||||||||||||||||
Forfeited or expired | (449,025 | ) | 48.03 | |||||||||||||||||||||
Outstanding at January 31, 2015 | 8,953,675 | $ | 40.28 | $ | 5,099,000 | 2.6 | ||||||||||||||||||
Stock appreciation rights exercisable at January 31, 2015 | 8,152,634 | $ | 40.17 | $ | 5,099,000 | 2 | ||||||||||||||||||
Stock appreciation rights expected to become exercisable in the future as of January 31, 2015 | 739,920 | $ | 41.69 | $ | — | 8.6 | ||||||||||||||||||
The Company estimates the fair value of stock appreciation rights using the Black-Scholes option-pricing model, which requires the Company to estimate the expected term of the stock appreciation rights and expected future stock price volatility over the expected term. Estimates of expected terms, which represent the expected periods of time the Company believes stock appreciation rights will be outstanding, are based on historical experience. Estimates of expected future stock price volatility are based on the volatility of the Company's Common Stock price for the most recent historical period equal to the expected term of the stock appreciation right, as appropriate. The Company calculates the volatility as the annualized standard deviation of the differences in the natural logarithms of the weekly stock closing price, adjusted for stock splits and dividends. The weighted-average assumptions used in the Black-Scholes option-pricing model for stock appreciation rights granted during Fiscal 2014, Fiscal 2013 and Fiscal 2012 were as follows: | ||||||||||||||||||||||||
Executive Officers | All Other Associates | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Grant date market price | $ | 35.08 | $ | 46.57 | $ | 52.89 | $ | 37.05 | $ | 43.86 | $ | 51.31 | ||||||||||||
Exercise price | $ | 35.49 | $ | 46.57 | $ | 52.89 | $ | 37.22 | $ | 43.86 | $ | 51.31 | ||||||||||||
Fair value | $ | 12.85 | $ | 20.34 | $ | 23.53 | $ | 12.92 | $ | 16.17 | $ | 21.9 | ||||||||||||
Assumptions: | ||||||||||||||||||||||||
Price volatility | 49 | % | 61 | % | 56 | % | 50 | % | 53 | % | 61 | % | ||||||||||||
Expected term (years) | 4.9 | 4.7 | 5 | 4.1 | 4.1 | 4.1 | ||||||||||||||||||
Risk-free interest rate | 1.6 | % | 0.7 | % | 1.3 | % | 1.4 | % | 0.7 | % | 0.9 | % | ||||||||||||
Dividend yield | 2 | % | 1.8 | % | 1.1 | % | 1.9 | % | 1.8 | % | 1.2 | % | ||||||||||||
Compensation expense for stock appreciation rights is recognized on a straight-line basis over the awards' requisite service period, net of forfeitures. As of January 31, 2015, there was $8.0 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 16 months. | ||||||||||||||||||||||||
The total intrinsic value of stock appreciation rights exercised during Fiscal 2014, Fiscal 2013 and Fiscal 2012 was $1.5 million, $8.5 million and $0.9 million, respectively. The grant date fair value of stock appreciation rights that vested during Fiscal 2014, Fiscal 2013 and Fiscal 2012 was $7.4 million, $83.7 million and $24.1 million, respectively. | ||||||||||||||||||||||||
Restricted Stock Units | ||||||||||||||||||||||||
The following table summarizes the activity for restricted stock units for Fiscal 2014: | ||||||||||||||||||||||||
Service-based Restricted Stock Units | Performance-based Restricted Stock Units | Market-based Restricted Stock Units | ||||||||||||||||||||||
Number of Underlying | Weighted-Average Grant | Number of Underlying | Weighted-Average Grant | Number of Underlying | Weighted-Average Grant | |||||||||||||||||||
Shares | Date Fair Value | Shares | Date Fair Value | Shares | Date Fair Value | |||||||||||||||||||
Unvested at February 1, 2014 | 1,162,825 | $ | 47.15 | 263,754 | $ | 40.93 | — | $ | — | |||||||||||||||
Granted | 1,019,363 | 32.45 | 177,006 | 26.61 | 88,500 | 42.44 | ||||||||||||||||||
Adjustments for performance achievement relative to award target | — | — | (98,483 | ) | 44.51 | — | — | |||||||||||||||||
Vested | (355,796 | ) | 48 | (10,002 | ) | 51.5 | — | — | ||||||||||||||||
Forfeited | (260,120 | ) | 44.59 | (126,855 | ) | 31.71 | (52,126 | ) | 44.05 | |||||||||||||||
Unvested at January 31, 2015 | 1,566,272 | $ | 37.81 | 205,420 | $ | 32.05 | 36,374 | $ | 40.13 | |||||||||||||||
The fair value of both service-based and performance-based restricted stock units 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. However, for market-based restricted stock units, the fair value is calculated using a Monte Carlo simulation with the number of shares that ultimately vest dependent on the Company's total stockholder return measured against the total stockholder return of a select group of peer companies over a three-year period. For any award with performance-based or market-based vesting requirements, the number of shares that ultimately vest can vary from 0% - 200% of target depending on the level of achievement of performance criteria. | ||||||||||||||||||||||||
Service-based restricted stock units are expensed on a straight-line basis over the total requisite service period, net of forfeitures. Performance-based restricted stock units are expensed on an accelerated attribution basis, net of forfeitures. Market-based restricted stock units without graded vesting features are expensed on a straight-line basis over the requisite service period, net of forfeitures. | ||||||||||||||||||||||||
As of January 31, 2015, there was $33.6 million, $0.8 million, and $1.0 million of total unrecognized compensation cost, net of estimated forfeitures, related to service-based, performance-based and market-based restricted stock units, respectively. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 16 months, 7 months, and 14 months for service-based, performance-based and market-based restricted stock units, respectively. | ||||||||||||||||||||||||
Additional information pertaining to restricted stock units for Fiscal 2014, Fiscal 2013 and Fiscal 2012 follows: | ||||||||||||||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | |||||||||||||||||||||
Service-based Restricted Stock Units: | ||||||||||||||||||||||||
Total grant date fair value of awards granted | $ | 33,075 | $ | 23,192 | $ | 29,297 | ||||||||||||||||||
Total grant date fair value of awards vested | 17,078 | 14,535 | 19,532 | |||||||||||||||||||||
Performance-based Restricted Stock Units: | ||||||||||||||||||||||||
Total grant date fair value of awards granted | $ | 4,709 | $ | 10,814 | $ | 773 | ||||||||||||||||||
Total grant date fair value of awards vested | 515 | 515 | — | |||||||||||||||||||||
Market-based Restricted Stock Units: | ||||||||||||||||||||||||
Total grant date fair value of awards granted | $ | 3,756 | $ | — | $ | — | ||||||||||||||||||
Total grant date fair value of awards vested | — | — | — | |||||||||||||||||||||
The weighted-average assumptions for market-based restricted stock units used in the Monte Carlo simulations during Fiscal 2014 were as follows: | ||||||||||||||||||||||||
Fiscal 2014 | ||||||||||||||||||||||||
Grant date market price | $ | 36.2 | ||||||||||||||||||||||
Fair value | $ | 40.42 | ||||||||||||||||||||||
Assumptions: | ||||||||||||||||||||||||
Price volatility | 49 | % | ||||||||||||||||||||||
Expected term (years) | 2.7 | |||||||||||||||||||||||
Risk-free interest rate | 0.8 | % | ||||||||||||||||||||||
Dividend yield | 2.2 | % | ||||||||||||||||||||||
Average volatility of peer companies | 36 | % | ||||||||||||||||||||||
Average correlation coefficient of peer companies | 0.3704 | |||||||||||||||||||||||
Rabbi_Trust_Assets
Rabbi Trust Assets | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||
RABBI TRUST ASSETS | RABBI TRUST ASSETS | |||||||
Investments of Rabbi Trust assets consisted of the following: | ||||||||
(in thousands) | 31-Jan-15 | 1-Feb-14 | ||||||
Rabbi Trust assets: | ||||||||
Trust-owned life insurance policies (at cash surrender value) | $ | 93,424 | $ | 90,198 | ||||
Money market funds | 24 | 24 | ||||||
Total Rabbi Trust assets | $ | 93,448 | $ | 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 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 $3.2 million, $2.6 million and $2.4 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively, recorded in Interest Expense, Net on the Consolidated Statements of Operations and Comprehensive (Loss) Income. | ||||||||
The Rabbi Trust assets are included in Other Assets on the Consolidated Balance Sheets and are restricted in their use as noted above. |
Fair_Value
Fair Value | 12 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
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 that the Company can access at the measurement date. | |||||||||||||||
• | 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 within it of the Company’s assets and liabilities, measured at fair value on a recurring basis, were as follows: | ||||||||||||||||
Assets and Liabilities at Fair Value as of January 31, 2015 | ||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
ASSETS: | ||||||||||||||||
Money market funds | $ | 122,047 | $ | — | $ | — | $ | 122,047 | ||||||||
Derivative financial instruments | — | 10,293 | — | 10,293 | ||||||||||||
Total assets measured at fair value | $ | 122,047 | $ | 10,293 | $ | — | $ | 132,340 | ||||||||
LIABILITIES: | ||||||||||||||||
Derivative financial instruments | — | — | — | — | ||||||||||||
Total liabilities measured at fair value | $ | — | $ | — | $ | — | $ | — | ||||||||
Assets and Liabilities at Fair Value as of February 1, 2014 | ||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
ASSETS: | ||||||||||||||||
Money market funds | $ | 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 | ||||||||
The level 2 assets and liabilities consist of derivative financial instruments, primarily forward foreign 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 the 2014 Credit Facilities and the 2011 and 2012 Credit Agreements are carried at historical cost in the accompanying Consolidated Balance Sheets. For disclosure purposes, the Company estimates the fair value of borrowings outstanding 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 outstanding are considered to be Level 2 instruments. | ||||||||||||||||
The carrying amount of gross borrowings outstanding under the Term Loan Facility was $299.3 million and the fair value of such borrowings was $295.1 million as of January 31, 2015. The carrying amount of borrowings outstanding under the 2012 Term Loan Agreement approximated fair value and was $135.0 million as of February 1, 2014. No borrowings were outstanding under the ABL Facility and the 2011 Credit Agreement as of January 31, 2015 and February 1, 2014, respectively. See Note 12, "BORROWINGS," for further discussion of the Credit Facilities. |
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET | |||||||
Property and equipment, net, consisted of (in thousands): | ||||||||
31-Jan-15 | 1-Feb-14 | |||||||
Land | $ | 37,473 | $ | 37,453 | ||||
Buildings | 286,820 | 296,382 | ||||||
Furniture, fixtures and equipment | 653,929 | 689,815 | ||||||
Information technology | 427,879 | 369,257 | ||||||
Leasehold improvements | 1,338,206 | 1,414,939 | ||||||
Construction in progress | 49,836 | 33,791 | ||||||
Other | 3,107 | 44,075 | ||||||
Total | $ | 2,797,250 | $ | 2,885,712 | ||||
Less: Accumulated depreciation and amortization | (1,830,249 | ) | (1,754,371 | ) | ||||
Property and equipment, net | $ | 967,001 | $ | 1,131,341 | ||||
Long-lived assets, primarily comprising of property and equipment, are tested 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. | ||||||||
Fair value of the Company's store-related assets is determined at the individual store level, primarily using a discounted cash flow model that utilizes Level 3 inputs. 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 indicated a negative value at the store level, the market exit price based on historical experience, and other comparable market data where applicable, was used to determine the fair value by asset type. | ||||||||
In Fiscal 2014, the Company incurred non-cash asset impairment charges of $45.0 million, excluding impairment charges incurred in connection with the Gilly Hicks restructuring, as it was determined that the carrying value of certain assets would not be recoverable and exceeded fair value. The asset impairment charges primarily related to the Company's Abercrombie & Fitch flagship store locations in Tokyo, Japan and Seoul, Korea, as well as nine abercrombie kids stores and nine Hollister stores. Additionally, in connection with the Company's plan to sell the its corporate aircraft, the asset was classified as available-for-sale and the Company incurred charges of approximately $11.3 million to record the expected loss on the disposal of the asset. The fair value of the Company's corporate aircraft was determined using a market approach utilizing level 2 inputs. | ||||||||
In Fiscal 2013, the Company incurred non-cash asset impairment charges of $46.7 million, excluding impairment charges incurred in connection with the Gilly Hicks restructuring, as a result of the impact of sales trends on the profitability of a number of stores identified in the third quarter of Fiscal 2013 as well as fiscal year-end review of store-related long-lived assets. The non-cash asset impairment charges primarily related to 23 Abercrombie & Fitch stores, four abercrombie kids stores, and 70 Hollister stores. In addition, the Company incurred charges of $37.9 million related to the Gilly Hicks restructuring. | ||||||||
In Fiscal 2012, as a result of the fiscal year-end review of long-lived store-related assets, the Company incurred non-cash store-related asset impairment charges of $7.4 million. The asset impairment charge was related to one Abercrombie & Fitch stores, three abercrombie kids stores, 12 Hollister stores, and one Gilly Hicks store. | ||||||||
See Note 15, “GILLY HICKS RESTRUCTURING," for additional information about asset impairment charges incurred in connection with the Company's restructuring of the Gilly Hicks brand. | ||||||||
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, including the portion funded by the landlord, and an amount related to the value attributed to the pre-existing leased building in Property and Equipment, Net, and a corresponding 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 $40.1 million and $52.3 million of construction project assets in Property and Equipment, Net at January 31, 2015 and February 1, 2014, respectively. |
Other_Assets
Other Assets | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Other Assets, Noncurrent Disclosure [Abstract] | ||||||||
OTHER ASSETS | OTHER ASSETS | |||||||
Other assets consisted of (in thousands): | ||||||||
January 31, 2015 | February 1, 2014 | |||||||
Non-current deferred tax assets | $ | 96,999 | $ | 97,587 | ||||
Rabbi Trust | 93,448 | 90,222 | ||||||
Long-term deposits | 64,415 | 68,886 | ||||||
Long-term supplies | 31,565 | 36,008 | ||||||
Intellectual property | 27,943 | 30,987 | ||||||
Restricted cash | 14,835 | 26,686 | ||||||
Prepaid income tax on intercompany items | 9,968 | 12,421 | ||||||
Other | 34,021 | 36,293 | ||||||
Other assets | $ | 373,194 | $ | 399,090 | ||||
Long-term supplies include, but are not limited to, hangers, frames, sign holders, security tags, back-room supplies, and construction materials. Intellectual property primarily includes trademark assets associated with the Company's International operations, consisting of finite-lived and indefinite-lived intangible assets of approximately $15.3 million and $12.6 million, respectively, as of January 31, 2015, and finite-lived and indefinite-lived intangible assets of approximately $16.3 million and $14.7 million, respectively, as of February 1, 2014. The Company's finite-lived intangible assets are amortized over a useful life of 10 to 20 years. 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. Other includes prepaid leases and various other assets. |
Deferred_Lease_Credits
Deferred Lease Credits | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
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, consisting of the following (in thousands): | ||||||||
January 31, 2015 | February 1, 2014 | |||||||
Deferred lease credits | $ | 490,452 | $ | 543,040 | ||||
Amortized deferred lease credits | (357,430 | ) | (366,076 | ) | ||||
Total deferred lease credits, net | $ | 133,022 | $ | 176,964 | ||||
Less: short-term portion of deferred lease credits | (26,629 | ) | (36,165 | ) | ||||
Long-term portion of deferred lease credits | $ | 106,393 | $ | 140,799 | ||||
Accrued_Expenses
Accrued Expenses | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Payables and Accruals [Abstract] | ||||||||
ACCRUED EXPENSES | ACCRUED EXPENSES | |||||||
Accrued expenses consisted of (in thousands): | ||||||||
January 31, 2015 | February 1, 2014 | |||||||
Accrued payroll and related costs | $ | 56,384 | $ | 49,878 | ||||
Gift card liability | 36,936 | 42,512 | ||||||
Accrued taxes | 34,629 | 44,100 | ||||||
Construction in progress | 30,661 | 23,634 | ||||||
Accrued rent | 25,607 | 59,997 | ||||||
Other | 98,519 | 102,713 | ||||||
Accrued expenses | $ | 282,736 | $ | 322,834 | ||||
Accrued payroll and related costs include salaries, incentive compensation, benefits, withholdings and other payroll related costs. Other accrued expenses include expenses incurred but not yet paid related to outside services associated with store and home office operations. |
Other_Liabilities
Other Liabilities | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Other Liabilities Disclosure [Abstract] | ||||||||
OTHER LIABILITIES | OTHER LIABILITIES | |||||||
Other liabilities consisted of (in thousands): | ||||||||
January 31, 2015 | February 1, 2014 | |||||||
Accrued straight-line rent | $ | 99,108 | $ | 114,001 | ||||
Deferred compensation | 56,244 | 87,385 | ||||||
Uncertain tax positions, including interest and penalties | 4,572 | 5,777 | ||||||
Other | 21,362 | 24,594 | ||||||
Other liabilities | $ | 181,286 | $ | 231,757 | ||||
Deferred compensation includes the Supplemental Executive Retirement Plan (the “SERP”), the Abercrombie & Fitch Co. Savings and Retirement Plan and the Abercrombie & Fitch Nonqualified Savings and Supplemental Retirement Plan, all further discussed in Note 16, “RETIREMENT BENEFITS,” as well as deferred Board of Directors compensation and other accrued retirement benefits |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
INCOME TAXES | INCOME TAXES | |||||||||||
Income before taxes was comprised of: | ||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | |||||||||
Domestic | $ | 100,115 | $ | 37,325 | $ | 302,589 | ||||||
Foreign | (961 | ) | 35,952 | 64,356 | ||||||||
Total | $ | 99,154 | $ | 73,277 | $ | 366,945 | ||||||
Domestic income above includes intercompany charges to foreign affiliates for management fees, cost-sharing, royalties, including those related to international direct-to-consumer operations and interest. The provision for tax expense consisted of: | ||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | |||||||||
Current: | ||||||||||||
Federal | $ | 21,287 | $ | 52,579 | $ | 111,761 | ||||||
State | 1,944 | (4,988 | ) | 15,323 | ||||||||
Foreign | 28,614 | 17,851 | 17,984 | |||||||||
$ | 51,845 | $ | 65,442 | $ | 145,068 | |||||||
Deferred: | ||||||||||||
Federal | $ | 8,971 | $ | (36,732 | ) | $ | (10,456 | ) | ||||
State | 1,783 | (4,606 | ) | 458 | ||||||||
Foreign | (15,266 | ) | (5,455 | ) | (5,136 | ) | ||||||
$ | (4,512 | ) | $ | (46,793 | ) | $ | (15,134 | ) | ||||
Total provision | $ | 47,333 | $ | 18,649 | $ | 129,934 | ||||||
Reconciliation between the statutory federal income tax rate and the effective tax rate is as follows: | ||||||||||||
Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
U.S. Federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State income tax, net of U.S. federal income tax effect | 4.3 | (4.1 | ) | 2.7 | ||||||||
Taxation of non-U.S. operations (1) | 5.4 | 2 | (1.4 | ) | ||||||||
Net change in valuation allowances | 6.6 | 0.1 | (0.2 | ) | ||||||||
Audit and other adjustments to prior years' accruals | (1.3 | ) | (5.6 | ) | — | |||||||
Other items (including permanent items and credits), net | (2.3 | ) | (1.9 | ) | (0.7 | ) | ||||||
Total | 47.7 | % | 25.5 | % | 35.4 | % | ||||||
(1) | The jurisdictional location of earnings/losses is a significant component of our effective tax rate each year as tax rates outside the U.S. are generally lower than the U.S. statutory income tax rate, and the rate impact of this component is influenced by the specific location of non-U.S. earnings/losses and the level of such earnings as compared to our total earnings. | |||||||||||
Income taxes paid directly to taxing authorities net of refunds received were $74.7 million, $116.3 million, and $122.5 million in Fiscal 2014, Fiscal 2013, and Fiscal 2012, respectively. These amounts include payments and refunds for income and withholding taxes incurred related to the current year and all prior years. | ||||||||||||
The effect of temporary differences which gives rise to deferred income tax assets (liabilities) were as follows: | ||||||||||||
(in thousands) | January 31, 2015 | February 1, 2014 | ||||||||||
Deferred tax assets: | ||||||||||||
Deferred compensation | $ | 83,157 | $ | 91,585 | ||||||||
Accrued expenses and reserves | 17,695 | 22,403 | ||||||||||
Rent | 38,881 | 49,170 | ||||||||||
Net operating losses (NOL) and credit carryforwards | 14,897 | 12,611 | ||||||||||
Other | 1,403 | 307 | ||||||||||
Valuation allowances | (6,730 | ) | (202 | ) | ||||||||
Total deferred tax assets | $ | 149,303 | $ | 175,874 | ||||||||
Deferred tax liabilities: | ||||||||||||
Property, equipment and intangibles | (16,059 | ) | (36,266 | ) | ||||||||
Inventory | (11,332 | ) | (8,487 | ) | ||||||||
Store supplies | (7,046 | ) | (7,798 | ) | ||||||||
Prepaid expenses | (2,438 | ) | (2,116 | ) | ||||||||
Other | (1,424 | ) | (3,754 | ) | ||||||||
Total deferred tax liabilities | $ | (38,299 | ) | $ | (58,421 | ) | ||||||
Net deferred income tax assets | $ | 111,004 | $ | 117,453 | ||||||||
Accumulated other comprehensive (loss) is shown net of deferred tax assets and deferred tax liabilities, resulting in a deferred tax liability of $1.6 million and a deferred tax asset of $0.3 million as of January 31, 2015 and February 1, 2014, respectively. These deferred taxes are not reflected in the table above. | ||||||||||||
As of January 31, 2015, the Company had deferred tax assets related to foreign and state net operating losses of $12.7 million and $0.2 million, respectively, that could be utilized to reduce future years’ tax liabilities. If not utilized, a portion of the foreign net operating loss carryovers will begin to expire in 2016 and a portion of state net operating losses will begin to expire in 2021. Some foreign net operating losses have an indefinite carryforward period. | ||||||||||||
As of January 31, 2015, the Company had deferred tax assets related to state credit carryovers of $2.0 million that could be utilized to reduce future years’ tax liabilities. If not utilized, the credit carryforwards will expire in 2017. The utilization of credit carryforwards may be limited in a given year. | ||||||||||||
The Company believes it is more likely than not that net operating losses and credit carryovers would reduce future years’ tax liabilities in various states and certain foreign jurisdictions less any associated valuation allowance. The Company established a $6.1 million valuation allowance in Fiscal 2014 for net operating loss carryforwards for which the Company has determined based on the currently available evidence it is more likely than not that the associated deferred tax asset will not be realized. All valuation allowances have been reflected through the Consolidated Statements of Operations and Comprehensive (Loss) Income. No other valuation allowances have been provided for deferred tax assets because the Company believes that it is more likely than not that the full amount of the net deferred tax assets will be realized in the future. While the Company does not expect material adjustments to the total amount of valuation allowance within the next 12 months, changes in assumptions may occur based on the information then currently available. In such case, the Company will record an adjustment in the period in which a determination is made. | ||||||||||||
A reconciliation of the beginning and ending amounts of uncertain tax positions is as follows: | ||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | |||||||||
Uncertain tax positions, beginning of the year | $ | 4,182 | $ | 11,116 | $ | 13,404 | ||||||
Gross addition for tax positions of the current year | 152 | 449 | 1,084 | |||||||||
Gross addition for tax positions of prior years | 33 | 30 | 227 | |||||||||
Reductions of tax positions of prior years for: | ||||||||||||
Lapses of applicable statutes of limitations | (348 | ) | (2,880 | ) | (2,053 | ) | ||||||
Settlements during the period | (4 | ) | (3,936 | ) | (1,480 | ) | ||||||
Changes in judgment | (803 | ) | (597 | ) | (66 | ) | ||||||
Uncertain tax positions, end of year | $ | 3,212 | $ | 4,182 | $ | 11,116 | ||||||
The amount of the above uncertain tax positions at January 31, 2015, February 1, 2014 and February 2, 2013 which would impact the Company’s effective tax rate, if recognized, was $3.2 million, $4.2 million and $11.1 million, respectively. | ||||||||||||
The Company recognizes accrued interest and penalties related to uncertain tax positions as a component of income tax expense. The Company recognized a $0.2 million benefit related to net interest and penalties during Fiscal 2014 compared to a $1.3 million benefit recognized during Fiscal 2013. Interest and penalties of $1.4 million had been accrued at the end of Fiscal 2014, compared to $1.6 million accrued at the end of Fiscal 2013. | ||||||||||||
The Internal Revenue Service (“IRS”) is currently conducting an examination of the Company’s U.S. federal income tax return for Fiscal 2014 as part of the IRS’s Compliance Assurance Process program. The IRS examinations for Fiscal 2013 and prior years have been completed and settled. State and foreign returns are generally subject to examination for a period of three to five years after the filing of the respective return. The Company has various state and foreign income tax returns in the process of examination, administrative appeals or litigation, the outcomes of which are not expected to have a material impact on the Company's financial statements. The Company believes that some of these audits and negotiations will conclude within the next 12 months and that it is reasonably possible the amount of uncertain income tax positions, including interest, may decrease in the range of $1.5 million to $2.5 million due to settlements of audits and expirations of statutes of limitations. | ||||||||||||
The Company does not expect material adjustments to the total amount of uncertain tax positions within the next 12 months, but the outcome of tax matters is uncertain and unforeseen results can occur. | ||||||||||||
As of January 31, 2015, U.S. taxes have not been provided for with respect to approximately $75.5 million of unremitted earnings of subsidiaries operating outside of the United States. These earnings, which are considered to be invested indefinitely, would become subject to income tax if they were remitted as dividends or were lent to Abercrombie & Fitch or a U.S. affiliate, or if Abercrombie & Fitch were to sell its stock in the subsidiaries. Determination of the amount of unrecognized deferred U.S. income tax liability on these unremitted earnings is not practicable because of the complexities associated with this hypothetical calculation. |
Borrowings
Borrowings | 12 Months Ended | |||
Jan. 31, 2015 | ||||
Debt Disclosure [Abstract] | ||||
BORROWINGS | BORROWINGS | |||
In 2011, the Company entered into an unsecured credit agreement (the "2011 Credit Agreement") which, as amended most recently on November 4, 2013, provided for a $350 million revolving credit facility. In 2012, the Company entered into a term loan agreement (the "2012 Term Loan Agreement" and, together with the 2011 Credit Agreement, the "2011 and 2012 Credit Agreements") which, as amended most recently on November 4, 2013, provided for a $150 million term loan facility. No borrowings were outstanding under the 2011 Credit Agreement and $135.0 million in borrowings were outstanding under the 2012 Term Loan Agreement as of February 1, 2014. | ||||
On August 7, 2014, in connection with the Company entering into new credit agreements, all amounts outstanding under the 2011 and 2012 Credit Agreements were repaid in full and the 2011 and 2012 Credit Agreements were terminated. The new credit agreements are discussed below. | ||||
Asset-Based Revolving Credit Facility and Term Loan Facility | ||||
On August 7, 2014, A&F, through its subsidiary Abercrombie & Fitch Management Co. ("A&F Management") as the lead borrower (with A&F and certain other subsidiaries as borrowers or guarantors), entered into an asset-based revolving credit agreement. The agreement provides for a senior secured revolving credit facility of up to $400 million (the "ABL Facility"), subject to a borrowing base, with a letter of credit sub-limit of $100 million and an accordion feature allowing A&F to increase the revolving commitment by up to $100 million subject to specified conditions. The ABL Facility is available for working capital, capital expenditures and other general corporate purposes. | ||||
A&F, through its subsidiary A&F Management as the borrower (with A&F and certain other subsidiaries as guarantors), also entered into a term loan agreement on August 7, 2014, which provides for a term loan facility of $300 million (the "Term Loan Facility" and, together with the ABL Facility, the "2014 Credit Facilities"). A portion of the proceeds of the Term Loan Facility was used to repay the outstanding balance of approximately $127.5 million under the Company's 2012 Term Loan Agreement, to repay outstanding borrowings of approximately $60 million under the Company's 2011 Credit Agreement and to pay fees and expenses associated with the transaction. | ||||
Debt Discount and Deferred Financing Fees | ||||
The Term Loan Facility was issued at a 1.0% discount. In addition, the Company recorded deferred financing fees associated with the issuance of the 2014 Credit Facilities of $5.8 million in aggregate, of which $3.2 million was paid to the lenders. The Company is amortizing the debt discount and deferred financing fees over the respective contractual terms of the 2014 Credit Facilities. The Company's Term Loan debt is presented in the Consolidated Balance Sheets, net of the unamortized discount and fees paid to lenders. Net borrowings as of January 31, 2015 were as follows: | ||||
(in thousands) | January 31, 2015 | |||
Borrowings, gross at carrying amount | $ | 299,250 | ||
Unamortized discount | (2,786 | ) | ||
Unamortized fees paid to lenders | (3,052 | ) | ||
Borrowings, net | $ | 293,412 | ||
Less: short-term portion of borrowings, net of discount and fees of $0.9M | (2,102 | ) | ||
Long-term portion of borrowings, net | $ | 291,310 | ||
No borrowings were outstanding under the ABL Facility as of January 31, 2015. | ||||
Maturity, Amortization and Prepayments | ||||
The ABL Facility will mature on August 7, 2019. The Term Loan Facility will mature on August 7, 2021 and amortizes at a rate equal to 0.25% of the original principal amount per quarter, beginning with the fourth quarter of Fiscal 2014. The Term Loan Facility is subject to (a) beginning in 2016, an annual mandatory prepayment in an amount equal to 0% to 50% of the Company's excess cash flows in the preceding fiscal year, depending on the Company's leverage ratio and (b) certain other mandatory prepayments upon receipt by the Company of proceeds of certain debt issuances, asset sales and casualty events, subject to certain exceptions specified therein, including reinvestment rights. | ||||
A summary of future minimum payments under the Term Loan facility is as follows (in thousands): | ||||
Fiscal 2015 | $ | 3,000 | ||
Fiscal 2016 | $ | 3,000 | ||
Fiscal 2017 | $ | 3,000 | ||
Fiscal 2018 | $ | 3,000 | ||
Fiscal 2019 | $ | 3,000 | ||
Thereafter | $ | 284,250 | ||
Guarantees and Security | ||||
All obligations under the 2014 Credit Facilities are unconditionally guaranteed by A&F and certain of its subsidiaries. The ABL Facility is secured by a first-priority security interest in certain working capital of the borrowers and guarantors consisting of inventory, accounts receivable and certain other assets. The Term Loan Facility is secured by a second-priority security interest in the same collateral, with certain exceptions. The Term Loan Facility is also secured by a first-priority security interest in certain property and assets of the borrowers and guarantors, including certain fixed assets, intellectual property, stock of subsidiaries and certain after-acquired material real property. The ABL Facility is secured by a second-priority security interest in the same collateral. | ||||
Interest and Fees | ||||
Amounts borrowed under the ABL Facility bear interest, at the Company's option, at either an adjusted LIBOR rate plus a margin of 1.25% to 1.75% per annum, or an alternate base rate plus a margin of 0.25% to 0.75% per annum. The initial applicable margins with respect to LIBOR loans and base rate loans, including swing line loans, under the ABL Facility are 1.50% and 0.50% per annum, respectively, and are subject to adjustment each fiscal quarter beginning January 31, 2015, based on average historical excess availability during the preceding quarter. The Company is also required to pay a fee of 0.25% per annum on undrawn commitments under the ABL Facility. Customary agency fees and letter of credit fees are also payable in respect of the ABL Facility. | ||||
At the Company's option, borrowings under the Term Loan Facility will bear interest at either (a) an adjusted LIBOR rate no lower than 1.00% plus a margin of 3.75% per annum or (b) an alternate base rate plus a margin of 2.75% per annum. Customary agency fees are also payable in respect of the Term Loan Facility. | ||||
The interest rate on borrowings under the Term Loan Facility was 4.75% as of January 31, 2015. | ||||
Representations, Warranties and Covenants | ||||
The 2014 Credit Facilities contain various representations, warranties and restrictive covenants that, among other things and subject to specified exceptions, restrict the ability of A&F and its subsidiaries to incur indebtedness (including guarantees), grant liens, make investments, pay dividends or distributions with respect to capital stock, make prepayments on other indebtedness, engage in mergers, dispose of certain assets or change the nature of their business. In addition, excess availability equal to the greater of 10% of the loan cap or $30 million must be maintained under the ABL Facility. The 2014 Credit Facilities do not otherwise contain financial maintenance covenants. | ||||
The Company was in compliance with the covenants under the 2014 Credit Facilities as of January 31, 2015. |
Derivatives
Derivatives | 12 Months Ended | |||||||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||||||
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 (Loss) Income (“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 are 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 accounts receivable. 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. These forward contracts typically have a maximum term of 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 (Loss) Income. Substantially all of the unrealized gains or losses related to designated cash flows hedges as of January 31, 2015 will be recognized in cost of goods sold over the next twelve months. | ||||||||||||||||||||||||||||
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 January 31, 2015, the Company had the following outstanding 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 | $ | 53,120 | ||||||||||||||||||||||||||
British Pound | $ | 18,345 | ||||||||||||||||||||||||||
Canadian Dollar | $ | 10,705 | ||||||||||||||||||||||||||
(1) | Amounts are reported in thousands and in U.S. Dollars equivalent as of January 31, 2015. | |||||||||||||||||||||||||||
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 January 31, 2015, the Company had outstanding the following foreign currency exchange forward contracts that were entered into to hedge foreign currency denominated net monetary assets/liabilities: | ||||||||||||||||||||||||||||
Notional Amount(1) | ||||||||||||||||||||||||||||
Euro | $ | 5,659 | ||||||||||||||||||||||||||
British Pound | $ | 3,763 | ||||||||||||||||||||||||||
(1) | Amounts are reported in thousands and in U.S. Dollars equivalent as of January 31, 2015. | |||||||||||||||||||||||||||
The location and amounts of derivative fair values on the Consolidated Balance Sheets as of January 31, 2015 and February 1, 2014 were as follows: | ||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||
(in thousands) | Balance Sheet Location | 31-Jan-15 | 1-Feb-14 | Balance Sheet Location | 31-Jan-15 | 1-Feb-14 | ||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||
Foreign currency exchange forward contracts | Other Current Assets | $ | 10,283 | $ | 691 | Other Liabilities | $ | — | $ | 2,503 | ||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||
Foreign currency exchange forward contracts | Other Current Assets | $ | 10 | $ | 278 | Other Liabilities | $ | — | $ | 52 | ||||||||||||||||||
Total | Other Current Assets | $ | 10,293 | $ | 969 | Other Liabilities | $ | — | $ | 2,555 | ||||||||||||||||||
Refer to Note 5, “FAIR VALUE,” for further discussion of the determination of the fair value of derivatives. | ||||||||||||||||||||||||||||
The location and amounts of derivative gains and losses for Fiscal 2014 and Fiscal 2013 on the Consolidated Statements of Operations and Comprehensive (Loss) Income were as follows: | ||||||||||||||||||||||||||||
Fiscal 2014 | Fiscal 2013 | |||||||||||||||||||||||||||
(in thousands) | Location | Gain/(Loss) | Gain/(Loss) | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||
Foreign currency exchange forward contracts | Other Operating Income, Net | $ | 2,537 | $ | 378 | |||||||||||||||||||||||
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) | ||||||||||||||||||||||||
(in thousands) | January 31, | February 1, | January 31, | February 1, | January 31, | February 1, | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
Derivatives in cash flow hedging relationships | ||||||||||||||||||||||||||||
Foreign currency exchange forward contracts | $ | 16,572 | $ | 6,435 | Cost of Goods Sold | $ | 440 | $ | 857 | Other Operating Income, Net | $ | 215 | $ | 248 | ||||||||||||||
(a) | The amount represents the change in fair value of derivative contracts due to changes in spot rates. | |||||||||||||||||||||||||||
(b) | The amount represents reclassification from OCI into earnings that occurs 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 (Loss) Income | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Equity [Abstract] | ||||||||||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |||||||||||
The activity in accumulated other comprehensive (loss) income for Fiscal 2014 was as follows: | ||||||||||||
Fiscal 2014 | ||||||||||||
(in thousands) | Unrealized (Loss) Gain on Derivative Financial Instruments | Foreign Currency Translation Adjustment | Total | |||||||||
Beginning balance at February 1, 2014 | $ | (2,166 | ) | $ | (18,751 | ) | $ | (20,917 | ) | |||
Other comprehensive income (loss) before reclassifications | 16,572 | (76,891 | ) | (60,319 | ) | |||||||
Reclassified from accumulated other comprehensive (loss) income(1) | (440 | ) | — | (440 | ) | |||||||
Tax effect on other comprehensive income (loss) | (866 | ) | (1,038 | ) | (1,904 | ) | ||||||
Other comprehensive income (loss) | 15,266 | (77,929 | ) | (62,663 | ) | |||||||
Ending balance at January 31, 2015 | $ | 13,100 | $ | (96,680 | ) | $ | (83,580 | ) | ||||
(1) | For Fiscal 2014 the gain or loss was reclassified from Other Comprehensive (Loss) Income to the Cost of Goods Sold line item on the Consolidated Statement of Operations and Comprehensive (Loss) Income. | |||||||||||
The activity in accumulated other comprehensive (loss) income for Fiscal 2013 was as follows: | ||||||||||||
Fiscal 2013 | ||||||||||||
(in thousands) | Unrealized (Loss) Gain on Derivative Financial Instruments | Foreign Currency Translation Adjustment | Total | |||||||||
Beginning balance February 2, 2013 | $ | (7,220 | ) | $ | (6,068 | ) | $ | (13,288 | ) | |||
Other comprehensive income (loss) before reclassifications | 6,435 | (12,683 | ) | (6,248 | ) | |||||||
Reclassified from accumulated other comprehensive (loss) income(1) | (857 | ) | — | (857 | ) | |||||||
Tax effect on other comprehensive income (loss) | (524 | ) | — | (524 | ) | |||||||
Other comprehensive income (loss) | 5,054 | (12,683 | ) | (7,629 | ) | |||||||
Ending balance at February 1, 2014 | $ | (2,166 | ) | $ | (18,751 | ) | $ | (20,917 | ) | |||
(1) | For Fiscal 2013 the gain or loss was reclassified from Other Comprehensive (Loss) Income to the Cost of Goods Sold line item on the Consolidated Statement of Operations and Comprehensive (Loss) Income. | |||||||||||
The activity in accumulated other comprehensive (loss) income for Fiscal 2012 was as follows: | ||||||||||||
Fiscal 2012 | ||||||||||||
(in thousands) | Unrealized (Loss) Gain on Derivative Financial Instruments | Foreign Currency Translation Adjustment | Total | |||||||||
Beginning balance January 28, 2012 | $ | 11,932 | $ | (5,641 | ) | $ | 6,291 | |||||
Other comprehensive income (loss) before reclassifications | (4,003 | ) | (427 | ) | (4,430 | ) | ||||||
Reclassified from accumulated other comprehensive (loss) income(1) | (17,510 | ) | — | (17,510 | ) | |||||||
Tax effect on other comprehensive income (loss) | 2,361 | — | 2,361 | |||||||||
Other comprehensive income (loss) | (19,152 | ) | (427 | ) | (19,579 | ) | ||||||
Ending balance at February 2, 2013 | $ | (7,220 | ) | $ | (6,068 | ) | $ | (13,288 | ) | |||
(1) | For Fiscal 2012 the gain or loss was reclassified from Other Comprehensive (Loss) Income to the Cost of Goods Sold line item on the Consolidated Statement of Operations and Comprehensive (Loss) Income. |
Gilly_Hicks_Restructuring
Gilly Hicks Restructuring | 12 Months Ended | |||
Jan. 31, 2015 | ||||
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 the Hollister direct-to-consumer channel. | ||||
As a result of exiting the Gilly Hicks branded stores, the Company currently estimates that it will incur aggregate pre-tax charges of approximately $91.2 million, of which $8.4 million in charges, primarily related to lease terminations and asset impairment, was recognized during Fiscal 2014 and $81.5 million was recognized during Fiscal 2013. | ||||
Below is a summary of the aggregate pre-tax charges incurred through January 31, 2015 related to the closure of the Gilly Hicks branded stores (in thousands): | ||||
Lease terminations and store closure costs | $ | 48,665 | ||
Asset impairment | 40,036 | |||
Other | 1,230 | |||
Total charges (1) | $ | 89,931 | ||
(1) | As of January 31, 2015, the Company incurred aggregate pre-tax charges related to restructuring plans for the Gilly Hicks brand of $50.4 million for the U.S. Stores segment and $39.5 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 $1.3 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 January 31, 2015, related to the closure of the Gilly Hicks stores (in thousands): | ||||
Accrued liability as of February 1, 2014 | $ | 42,507 | ||
Costs incurred | 11,631 | |||
Cash payments | (48,141 | ) | ||
Accrued liability as of January 31, 2015 | $ | 5,997 | ||
Retirement_Benefits
Retirement Benefits | 12 Months Ended |
Jan. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
RETIREMENT BENEFITS | RETIREMENT BENEFITS |
The Company maintains the Abercrombie & Fitch Co. Savings & Retirement Plan, a qualified plan. All U.S. associates are eligible to participate in this plan if they are at least 21 years of age and have completed a year of employment with 1,000 or more hours of service. In addition, the Company maintains the Abercrombie & Fitch Co. Nonqualified Savings and Supplemental Retirement, composed of two sub-plans (Plan I and Plan II). Plan I contains contributions made through December 31, 2004, while Plan II contains contributions made on and after January 1, 2005. Participation in these plans is based on service and compensation. The Company’s contributions are based on a percentage of associates’ eligible annual compensation. The cost of the Company’s contributions to these plans was $13.8 million, $18.3 million and $21.1 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | |
Effective February 2, 2003, the Company established a SERP to provide additional retirement income to its former CEO. On December 8, 2014, the former CEO, Michael S. Jeffries, retired from his position as Chief Executive Officer. Mr. Jeffries' employment with the Company terminated on December 31, 2014. In connection with his Employment Agreement, the former CEO will receive a monthly benefit which accumulates annually to 50% of his final average compensation (as defined in the SERP) for life. The final average compensation used for the calculation was based on actual compensation, base salary and cash incentive compensation, averaged over the last 36 consecutive full calendar months ended before the former CEO’s retirement. The Company recorded income of $1.0 million and $4.4 million, and expense of $3.9 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively, associated with the SERP. |
Segment_Reporting
Segment Reporting | 12 Months Ended | ||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||
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 had three reportable segments as of January 31, 2015: 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, Australia and the Middle East. 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 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, International Stores and Direct-to-Consumer reportable 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. | |||||||||||||||||||||||
Reportable segment assets include those used directly in or resulting from the operations of each reportable segment. Total assets for the U.S. Stores and International Stores reportable segments primarily consist of store cash, credit card receivables, prepaid rent, store packaging and supplies, lease deposits, merchandise inventory, leasehold acquisition costs, restricted cash and the net book value of store long-lived assets. Total assets for the International Stores reportable segment also include VAT receivables. Total assets for the Direct-to-Consumer reportable segment primarily consist of credit card receivables, merchandise inventory, and the net book value of long-lived assets. Total assets for Other include cash, investments, distribution center inventory, the net book value of home office and distribution center long-lived assets, foreign currency hedge assets and tax-related assets. Reportable segment capital expenditures are direct purchases of property and equipment for that segment. | |||||||||||||||||||||||
The following table provides the Company’s segment information as of, and for the fiscal years ended January 31, 2015, February 1, 2014 and February 2, 2013. | |||||||||||||||||||||||
(in thousands) | U.S. Stores | International | Direct-to- | Segment | Other(1) | Total | |||||||||||||||||
Stores | Consumer | Total | |||||||||||||||||||||
Operations | |||||||||||||||||||||||
31-Jan-15 | |||||||||||||||||||||||
Net Sales | $ | 1,878,542 | $ | 1,032,946 | $ | 832,542 | $ | 3,744,030 | — | $ | 3,744,030 | ||||||||||||
Depreciation and Amortization | 55,339 | 98,243 | 16,298 | 169,880 | 56,541 | 226,421 | |||||||||||||||||
Operating Income(2) | 261,446 | 204,262 | 269,564 | 735,272 | (621,753 | ) | 113,519 | ||||||||||||||||
Total Assets | 349,088 | 616,336 | 150,228 | 1,115,652 | 1,389,515 | 2,505,167 | |||||||||||||||||
Capital Expenditures(3) | 41,887 | 44,429 | 55,007 | 141,323 | 33,301 | 174,624 | |||||||||||||||||
1-Feb-14 | |||||||||||||||||||||||
Net Sales | 2,161,183 | 1,178,798 | 776,916 | 4,116,897 | — | 4,116,897 | |||||||||||||||||
Depreciation and Amortization | 75,297 | 92,474 | 7,850 | 175,621 | 59,619 | 235,240 | |||||||||||||||||
Operating Income(4) | 194,582 | 249,331 | 294,951 | 738,864 | (658,041 | ) | 80,823 | ||||||||||||||||
Total Assets | 414,463 | 805,257 | 122,381 | 1,342,101 | 1,508,896 | 2,850,997 | |||||||||||||||||
Capital Expenditures | 18,599 | 82,805 | 15,633 | 117,037 | 46,887 | 163,924 | |||||||||||||||||
2-Feb-13 | |||||||||||||||||||||||
Net Sales | 2,615,138 | 1,195,016 | 700,651 | 4,510,805 | — | 4,510,805 | |||||||||||||||||
Depreciation and Amortization | 94,367 | 67,972 | 5,198 | 167,537 | 56,708 | 224,245 | |||||||||||||||||
Operating Income(5) | 432,040 | 350,871 | 269,479 | 1,052,390 | (678,157 | ) | 374,233 | ||||||||||||||||
Total Assets | 587,334 | 840,317 | 63,063 | 1,490,714 | 1,496,687 | 2,987,401 | |||||||||||||||||
Capital Expenditures | 3,016 | 218,933 | 22,567 | 244,516 | 95,346 | 339,862 | |||||||||||||||||
(1) | Includes corporate functions 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. Operating Income includes: 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. A reconciliation of segment operating income to consolidated operating income is provided below. | ||||||||||||||||||||||
(2) | Includes charges related to asset impairment, lease terminations and store closures, the restructuring of the Gilly Hicks brand, the Company's profit improvement initiative, CEO transition costs and corporate governance matters of which $6.1 million is included in U.S. stores, $43.6 million is included in International Stores, $0.4 million is included in Direct-to-Consumer Operations and $28.1 million is included in Other for Fiscal 2014. | ||||||||||||||||||||||
(3) | Capital expenditures of $35.6 million related to the conversion of one of the Company's Columbus, Ohio distribution centers to a dedicated Direct-to-Consumer distribution center are included in Direct-to-Consumer Operations. | ||||||||||||||||||||||
(4) | Includes charges related to asset impairment, restructuring plans of the Gilly Hicks brand and the Company's profit improvement initiative of $94.9 million for U.S. Stores, $33.3 million for International Stores and $13.8 million for Other for Fiscal 2013. | ||||||||||||||||||||||
(5) | Includes charges for asset impairments of $7.4 million for U.S. Stores for Fiscal 2012. | ||||||||||||||||||||||
A reconciliation of the Company's segment operating income to the consolidated operating income reported in the Company's Consolidated Statements of Operations and Comprehensive (Loss) Income follows: | |||||||||||||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||||||||||||
Segment Operating Income | $ | 735,272 | $ | 738,864 | $ | 1,052,390 | |||||||||||||||||
Operating (Loss) Income Not Attributable to Segments: | |||||||||||||||||||||||
Stores and Distribution Expense | (164,765 | ) | (198,910 | ) | (223,611 | ) | |||||||||||||||||
Marketing, General and Administrative Expense | (460,917 | ) | (481,783 | ) | (473,880 | ) | |||||||||||||||||
Restructuring Charges | — | (421 | ) | — | |||||||||||||||||||
Asset Impairment | (11,310 | ) | — | — | |||||||||||||||||||
Other Operating Income, Net | 15,239 | 23,073 | 19,334 | ||||||||||||||||||||
Operating Income | $ | 113,519 | $ | 80,823 | $ | 374,233 | |||||||||||||||||
Net Sales: | |||||||||||||||||||||||
Net sales includes net merchandise sales through stores and direct-to-consumer operations, including shipping and handling revenue. Net sales are reported by geographic area based on the location of the customer. | |||||||||||||||||||||||
Brand Information | |||||||||||||||||||||||
Net sales by brand were as follows: | |||||||||||||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||||||||||||
Abercrombie & Fitch | $ | 1,449,946 | $ | 1,547,216 | $ | 1,704,190 | |||||||||||||||||
abercrombie | 321,353 | 346,739 | 382,509 | ||||||||||||||||||||
Hollister | 1,947,869 | 2,127,816 | 2,314,462 | ||||||||||||||||||||
Gilly Hicks | 24,862 | 95,126 | 109,644 | ||||||||||||||||||||
Total | $ | 3,744,030 | $ | 4,116,897 | $ | 4,510,805 | |||||||||||||||||
Geographic Information | |||||||||||||||||||||||
Net sales by geographic area were as follows: | |||||||||||||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||||||||||||
United States | $ | 2,408,427 | $ | 2,659,089 | $ | 3,087,205 | |||||||||||||||||
Europe | 959,981 | 1,116,781 | 1,137,664 | ||||||||||||||||||||
Other International | 375,622 | 341,027 | 285,936 | ||||||||||||||||||||
Total | $ | 3,744,030 | $ | 4,116,897 | $ | 4,510,805 | |||||||||||||||||
Net long-lived assets by geographic area, which include primarily property and equipment (net), store supplies and lease deposits, were as follows: | |||||||||||||||||||||||
(in thousands) | 31-Jan-15 | 1-Feb-14 | |||||||||||||||||||||
United States | $ | 581,430 | $ | 606,758 | |||||||||||||||||||
Europe | 326,726 | 438,931 | |||||||||||||||||||||
Other International | 158,743 | 191,312 | |||||||||||||||||||||
Total | $ | 1,066,899 | $ | 1,237,001 | |||||||||||||||||||
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||
Summarized unaudited quarterly financial results for Fiscal 2014 and Fiscal 2013 follows (in thousands, except per share amounts): | ||||||||||||||||
Fiscal Quarter 2014(10) | First(2) | Second(3) | Third(4) | Fourth(5) | ||||||||||||
Net sales | $ | 822,428 | $ | 890,605 | $ | 911,453 | $ | 1,119,544 | ||||||||
Gross profit | $ | 511,659 | $ | 552,956 | $ | 567,070 | $ | 681,885 | ||||||||
Net income (loss) | $ | (23,671 | ) | $ | 12,877 | $ | 18,227 | $ | 44,388 | |||||||
Net income (loss) per diluted share(1) | $ | (0.32 | ) | $ | 0.17 | $ | 0.25 | $ | 0.63 | |||||||
Fiscal Quarter 2013(10) | First(6) | Second(7) | Third(8) | Fourth(9) | ||||||||||||
Net sales | $ | 838,769 | $ | 945,698 | $ | 1,033,293 | $ | 1,299,137 | ||||||||
Gross profit | $ | 553,166 | $ | 604,122 | $ | 651,040 | $ | 767,107 | ||||||||
Net income (loss) | $ | (7,203 | ) | $ | 11,370 | $ | (15,644 | ) | $ | 66,106 | ||||||
Net income (loss) per diluted share(1) | $ | (0.09 | ) | $ | 0.14 | $ | (0.20 | ) | $ | 0.85 | ||||||
(1) | Net income (loss) per diluted share (Diluted EPS) was computed individually for each of the quarters presented using weighted average number of shares outstanding during the quarter while Diluted EPS for the full year is computed using the average of the weighted average number of shares outstanding each quarter; therefore, the sum of Diluted EPS for the quarters may not equal the total for the year. | |||||||||||||||
(2) | The first quarter of Fiscal 2014 included pre-tax charges of $6.9 million related to certain corporate governance matters, $5.6 million related to the restructuring of the Gilly Hicks brand, and $3.1 million related to the Company's profit improvement initiative. Net loss per diluted share included $0.15 related to the charges. The thirteen weeks ended May 3, 2014 included correction of certain errors relating to prior periods. The out-of-period correction of errors resulted in an increase to loss before taxes of $1.5 million, or $0.9 million after tax. | |||||||||||||||
(3) | The second quarter of Fiscal 2014 included pre-tax charges of $2.0 million related to the Company's profit improvement initiative and $0.4 million related to the restructuring of the Gilly Hicks brand. Net income per diluted share included $0.02 related to the charges. The thirteen and twenty-six weeks ended August 2, 2014 included the correction of certain errors relating to prior periods. The out-of-period correction of errors resulted in a decrease to income before taxes of $1.4 million, or $0.9 million after tax, resulting in a $0.9 million to net income for the thirteen weeks ended August 2, 2014. The out-of-period correction of errors resulted in an increase to loss before taxes of $2.9 million, or $1.7 million after tax for the twenty-six weeks ended August 2, 2014. | |||||||||||||||
(4) | The third quarter of Fiscal 2014 included pre-tax charges of $16.7 million for asset impairment, $2.3 million related to lease terminations and store closures, $0.7 million related to the Company's profit improvement initiative and $0.6 million related to certain corporate governance matters. Net income per diluted share included $0.17 related to the charges. The thirteen and thirty-nine weeks ended November 1, 2014 included the correction of certain errors relating to prior periods. The out-of-period correction of errors resulted in a decrease to income before taxes of $0.6 million, or $0.4 million after tax, and an unrelated tax charge of $0.4 million, for a combined reduction to net income of $0.8 million for the thirteen weeks ended November 1, 2014. The out-of-period correction of errors results in a decrease to income before taxes of $3.3 million, or $2.0 million after tax, and an unrelated tax charge of $0.4 million, for a combined reduction to net income of $2.4 million for the thirty-nine weeks ended November 1, 2014. | |||||||||||||||
(5) | The fourth quarter of Fiscal 2014 included pre-tax charges of $28.3 million for asset impairment, $5.2 million related to certain corporate governance matters and CEO transition costs, $3.4 million related to lease terminations and store closures, $2.4 million related to the restructuring of the Gilly Hicks brand and $0.7 million related to the Company's profit improvement initiative. Net income per diluted share included $0.52 related to the charges. The thirteen and fifty-two weeks ended January 31, 2015 included the correction of certain errors relating to prior periods. The out-of-period correction of errors resulted in a decrease to income before taxes and net income of $0.1 million for the thirteen weeks ended January 31, 2015. The out-of-period correction of errors resulted in a decrease in income before taxes of $2.9 million, or $1.8 million after tax, and an unrelated tax charge of $0.4 million, for a combined reduction to net income of $2.2 million for the fifty-two weeks ended January 31, 2015. | |||||||||||||||
(6) | The thirteen weeks ended May 4, 2013 included a reduction of pre-tax loss of $2.5 million and an unrelated tax charge of $1.2 million for the correction of errors relating to prior periods. The effect of these corrections decreased net loss by $0.6 million for the thirteen week period ended May 4, 2013. | |||||||||||||||
(7) | The second quarter of Fiscal 2013 included pre-tax charges of $2.6 million related to the Company's profit improvement initiative. Earnings per diluted share included $0.02 related to the charges. The thirteen week period ended August 3, 2013 included a reduction of pre-tax expense of $4.5 million for the correction of errors related to prior periods; the twenty-six week period ended August 3, 2013 included a reduction of pre-tax expense of $5.5 million and an unrelated tax charges of $1.2 million for the correction of errors related to prior periods. The effect of these corrections increased net income by $2.9 million and $2.5 million for the thirteen and twenty-six week periods ended August 3, 2013, respectively. | |||||||||||||||
(8) | The third quarter of Fiscal 2013 included pre-tax charges of $43.6 million for asset impairment, $44.7 million related to the restructuring of the Gilly Hicks brand and $7.6 million related to the Company's profit improvement initiative. Earnings per diluted share included $0.72 related to the charges. The thirteen week period ended November 2, 2013 included a reduction of pre-tax expense of $2.1 million and an unrelated tax benefit of $1.9 million for the correction of errors related to prior periods; the thirty-nine week period ended November 2, 2013 included a reduction of pre-tax expense of $6.3 million for the correction of errors related to prior periods. The effect of these corrections increased net income by $3.0 million and $4.7 million for the thirteen and thirty-nine week periods ended November 2, 2013, respectively. | |||||||||||||||
(9) | The fourth quarter of Fiscal 2014 included pre-tax charges of $3.1 million for asset impairment, $36.8 million related to the restructuring of the Gilly Hicks brand and $3.7 million related to the Company's profit improvement initiative. Earnings per diluted share included $0.38 related to the charges and $0.11 for a tax true-up related to the restructuring, asset impairment and profit improvement charges primarily incurred in the third quarter of Fiscal 2013, for the true-up of the estimated full year tax rate applied as of the third quarter to the full year Fiscal 2013 tax rate. The thirteen week period ended February 1, 2014 included an increase in pre-tax expense of $6.5 million and an unrelated tax charge of $2.2 million for the correction of errors related to prior periods. The effect of these corrections decrease net income by $6.2 million for the thirteen week period ended February 1, 2014; the fifty-two week period ended February 1, 2014 included a reduction of pre-tax expense of $2.6 million and an unrelated tax expense of $0.9 million. | |||||||||||||||
(10) | The Company does not believe these corrections were material to any current or prior interim or annual periods that were affected. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION | |||||||||||
The consolidated financial statements include the accounts of A&F and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | ||||||||||||
Fiscal Year | FISCAL YEAR | |||||||||||
The Company’s fiscal year ends on the Saturday closest to January 31. All references herein to “Fiscal 2014” represent the 52-week fiscal year ended January 31, 2015; to “Fiscal 2013” represent the 52-week fiscal year ended February 1, 2014; and to “Fiscal 2012” represent the 53-week fiscal year ended February 2, 2013. In addition, all references herein to “Fiscal 2015” represent the 52-week fiscal year that will end on January 30, 2016. | ||||||||||||
Use of Estimates | USE OF ESTIMATES | |||||||||||
The preparation of financial statements, in conformity with accounting principles generally accepted in the United States, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period. Due to the inherent uncertainty involved with estimates, actual results may differ. | ||||||||||||
Cash and Equivalents | CASH AND EQUIVALENTS | |||||||||||
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. | ||||||||||||
Restricted Cash | RESTRICTED CASH | |||||||||||
Any cash that is legally restricted from use is recorded in Other Assets on the Consolidated Balance Sheets. The restricted cash balance was $14.8 million and $26.7 million on January 31, 2015 and February 1, 2014, respectively. 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 | 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 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 $3.2 million, $2.6 million and $2.4 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively, recorded in Interest Expense, Net on the Consolidated Statements of Operations and Comprehensive (Loss) Income. | |||||||||||
The Rabbi Trust assets are included in Other Assets on the Consolidated Balance Sheets and are restricted in their use as noted above. | ||||||||||||
Receivables | RECEIVABLES | |||||||||||
Receivables primarily include credit card receivables, construction allowances, value added tax (“VAT”) receivables and other tax credits or refunds. | ||||||||||||
As part of the normal course of business, the Company has approximately three to four days of proceeds from sales transactions outstanding with its third-party credit card vendors at any point. The Company classifies these outstanding balances as credit card receivables. Construction allowances are recorded for certain store lease agreements for improvements completed by the Company. VAT receivables are payments the Company has made on purchases of goods that will be recovered as those goods are sold. | ||||||||||||
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 in the Consolidated Statements of Operations and Comprehensive (Loss) Income. 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 $12.7 million and $22.1 million as of January 31, 2015 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 $11.4 million and $13.6 million at January 31, 2015 and February 1, 2014, respectively. | ||||||||||||
The inventory balance, net of reserves, was $460.8 million and $530.2 million at January 31, 2015 and February 1, 2014, respectively. These balances included inventory in transit from vendors of $56.1 million and $76.4 million at January 31, 2015 and February 1, 2014, respectively. Inventory in transit is considered to be merchandise owned by the Company that has not yet been received at a Company distribution center. | ||||||||||||
Other Current Assets | OTHER CURRENT ASSETS | |||||||||||
Other current assets include prepaid rent, current store supplies, derivative contracts and other prepaids. | ||||||||||||
Property and Equipment | PROPERTY AND EQUIPMENT | |||||||||||
Depreciation and amortization of property and equipment are computed for financial reporting purposes on a straight-line basis using the following service lives: | ||||||||||||
Category of Property and Equipment | Service Lives | |||||||||||
Information technology | 3 - 7 years | |||||||||||
Furnitures, fixtures and equipment | 3 - 15 years | |||||||||||
Leasehold improvements | 3 - 15 years | |||||||||||
Other property and equipment | 3 - 20 years | |||||||||||
Buildings | 30 years | |||||||||||
Leasehold improvements are amortized over either their respective lease terms or their service lives, whichever is shorter. The cost of assets sold or retired and the related accumulated depreciation or amortization are removed from the accounts with any resulting gain or loss included in net income. Maintenance and repairs are charged to expense as incurred. Major remodels and improvements that extend the service lives of the related assets are capitalized. | ||||||||||||
Long-lived assets, primarily comprising of property and equipment, are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset may not be recoverable. On at least a quarterly basis, the Company reviews for indicators of impairment. In addition, the Company conducts an annual impairment analysis in the fourth quarter of each year. For purposes of the annual review, the Company reviews long-lived assets associated with stores that have an operating loss in the current year or otherwise display an indicator of impairment. The Company tests long-lived assets for impairments in the quarter in which a triggering event occurs. See Note 17, "SEGMENT REPORTING," for additional information about how store operating income or loss is determined. | ||||||||||||
The reviews are conducted at the individual store level, which is the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. | ||||||||||||
The impairment evaluation is performed as a two-step test. First, the Company utilizes an undiscounted future cash flow model to test the individual asset groups for recoverability. If the net carrying value of the asset group exceeds the undiscounted cash flows, the Company proceeds to step two. Under step two, an impairment loss is recognized for the excess of net book value over the fair value of the assets. Factors used in the evaluation include, but are not limited to, management’s plans for future operations, recent operating results and projected cash flows. See Note 6, “PROPERTY AND EQUIPMENT, NET,” for further discussion. | ||||||||||||
The Company expenses all internal-use software costs incurred in the preliminary project stage and capitalizes certain direct costs associated with the development and purchase of internal-use software within property and equipment. Capitalized costs are amortized on a straight-line basis over the estimated useful lives of the software, generally not exceeding seven years. | ||||||||||||
Income Taxes | INCOME TAXES | |||||||||||
Income taxes are calculated using the asset and liability method. Deferred tax assets and liabilities are recognized based on the difference between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using current enacted tax rates in effect for the years in which those temporary differences are expected to reverse. Inherent in the determination of the Company's income tax liability and related deferred income tax balances are certain judgments and interpretations of enacted tax law and published guidance with respect to applicability to the Company's operations. The Company is subject to audit by taxing authorities, usually several years after tax returns have been filed, and the taxing authorities may have differing interpretations of tax laws. Valuation allowances are established to reduce deferred tax assets to the amount expected to be realized when it is more likely than not that some portion or all of the deferred tax assets will not be realized. | ||||||||||||
The Company records tax expense or benefit that does not relate to ordinary income in the current fiscal year discretely in the period in which it occurs. Examples of such types of discrete items include, but are not limited to: changes in estimates of the outcome of tax matters related to prior years, assessments of valuation allowances, return-to-provision adjustments, tax-exempt income, and the settlement of tax audits and changes in tax legislation. | ||||||||||||
See Note 11, “INCOME TAXES,” for a discussion regarding the Company’s policies for uncertain tax positions. | ||||||||||||
Foreign Currency Translation and Transactions | FOREIGN CURRENCY TRANSLATION AND TRANSACTIONS | |||||||||||
The functional currency of the Company’s foreign subsidiaries is generally the local currencies in which they operate. Assets and liabilities denominated in foreign currencies are translated into U.S. Dollars (the reporting currency) at the exchange rate prevailing at the balance sheet date. Equity accounts denominated in foreign currencies are translated into U.S. Dollars at historical exchange rates. Revenues and expenses denominated in foreign currencies are translated into U.S. Dollars at the monthly average exchange rate for the period. Gains and losses resulting from foreign currency transactions are included in the results of operations; whereas, translation adjustments and inter-company loans of a long-term investment nature are reported as an element of Other Comprehensive (Loss) Income. Foreign currency transactions resulted in a loss of $2.0 million for Fiscal 2014 and a gain of $2.9 million and $3.3 million for Fiscal 2013 and Fiscal 2012, respectively. | ||||||||||||
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 (Loss) Income (“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 are 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 accounts receivable. 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. These forward contracts typically have a maximum term of 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 (Loss) Income. Substantially all of the unrealized gains or losses related to designated cash flows hedges as of January 31, 2015 will be recognized in cost of goods sold over the next twelve months. | ||||||||||||
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. | ||||||||||||
Contingencies | CONTINGENCIES | |||||||||||
The Company 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. | ||||||||||||
Stockholders' Equity | STOCKHOLDERS’ EQUITY | |||||||||||
At January 31, 2015 and February 1, 2014, there were 150.0 million shares of A&F’s Class A Common Stock, $0.01 par value, authorized, of which 69.4 million and 76.4 million were outstanding at January 31, 2015 and February 1, 2014, respectively, and 106.4 million shares of Class B Common Stock, $0.01 par value, authorized, none of which were outstanding at January 31, 2015 and February 1, 2014. | ||||||||||||
Holders of Class A Common Stock generally have identical rights to holders of Class B Common Stock, except holders of Class A Common Stock are entitled to one vote per share while holders of Class B Common Stock are entitled to three votes per share on all matters submitted to a vote of stockholders. | ||||||||||||
Revenue Recognition | REVENUE RECOGNITION | |||||||||||
The Company recognizes store sales at the time the customer takes possession of the merchandise. Direct-to-consumer sales are recorded based on an estimated date for customer receipt of merchandise, which is based on shipping terms and historical delivery transit times. Amounts relating to shipping and handling billed to customers in a sale transaction are classified as Net Sales and the related direct shipping and handling costs are classified as Stores and Distribution Expense in the Company's Consolidated Statements of Operations and Comprehensive (Loss) Income. Sales are recorded net of an allowance for estimated returns, associate discounts, and promotions and other similar customer incentives. The Company estimates reserves for sales returns based on historical experience. The sales return reserve was $9.5 million, $8.0 million and $9.3 million at January 31, 2015, February 1, 2014 and February 2, 2013, respectively. | ||||||||||||
The Company sells gift cards in its stores and through direct-to-consumer operations. The Company accounts for gift cards sold to customers by recognizing a liability at the time of sale. Gift cards sold to customers do not expire or lose value over periods of inactivity. The liability remains on the Company’s books until the Company recognizes income from gift cards. Income from gift cards is recognized at the earlier of redemption by the customer (recognized as Net Sales) or when the Company determines that the likelihood of redemption is remote, referred to as gift card breakage (recognized as Other Operating Income). The Company determines the probability of the gift card being redeemed to be remote based on historical redemption patterns. The gift card liability was $36.9 million and $42.5 million at January 31, 2015 and February 1, 2014, respectively. | ||||||||||||
The Company is not required by law to escheat the value of unredeemed gift cards to the states in which it operates. The Company recognized in Other Operating Income gift card breakage of $5.8 million, $8.8 million and $6.9 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | ||||||||||||
The Company does not include tax amounts collected as part of the sales transaction in its net sales results. | ||||||||||||
Cost of Goods Sold | COST OF GOODS SOLD | |||||||||||
Cost of goods sold primarily comprises cost incurred to ready inventory for sale, including product costs, freight, and import cost, as well as provision for reserves for shrink and lower of cost or market. Gains and losses associated with foreign currency exchange contracts related to hedging of inventory purchases are also recognized in cost of goods sold when the inventory being hedged is sold. | ||||||||||||
Stores and Distribution Expense | STORES AND DISTRIBUTION EXPENSE | |||||||||||
Stores and distribution expense includes store payroll, store management, rent, utilities and other landlord expenses, depreciation and amortization, repairs and maintenance and other store support functions, as well as Direct-to-Consumer expense and Distribution Center (“DC”) expense. | ||||||||||||
Shipping and handling costs, including costs incurred to store, move and prepare merchandise for shipment, and costs incurred to physically move merchandise to customers, associated with direct-to-consumer operations were $108.1 million, $93.4 million and $78.6 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. Handling costs, including costs incurred to store, move and prepare merchandise for shipment to stores were $52.2 million, $53.9 million and $59.4 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. These amounts are recorded in Stores and Distribution Expense in the Company's Consolidated Statements of Operations and Comprehensive (Loss) Income. Costs incurred to physically move merchandise to stores is recorded in Cost of Goods Sold in the Company's Consolidated Statements of Operations and Comprehensive (Loss) Income. | ||||||||||||
Marketing, General & Administrative Expense | MARKETING, GENERAL & ADMINISTRATIVE EXPENSE | |||||||||||
Marketing, general and administrative expense includes: photography and social media; store marketing; home office compensation, except for those departments included in stores and distribution expense; information technology; outside services such as legal and consulting; relocation; recruiting; samples and travel expenses. | ||||||||||||
Restructuring Charges | RESTRUCTURING CHARGES | |||||||||||
Restructuring charges consist of exit costs and other costs associated with the reorganization of the Company's operations, including employee termination costs, lease contract termination costs, impairment of assets, and any other qualifying exit costs. Costs associated with exit or disposal activities are recorded when the liability is incurred or when such costs are deemed probable and estimable and represent the Company's best estimates. | ||||||||||||
Other Operating Income, Net | OTHER OPERATING INCOME, NET | |||||||||||
Other operating income, net included income of $10.2 million, $9.0 million and $4.8 million related to insurance recoveries for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively; $5.8 million, $8.8 million and $6.9 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively, related to gift card balances whose likelihood of redemption has been determined remote and a loss of $2.0 million in Fiscal 2014, and gains of $2.9 million and $3.3 million in Fiscal 2013 and Fiscal 2012, respectively, attributed to foreign currency transactions. Other operating income, net for Fiscal 2012 also included a gain of $2.5 million related to the net impact of changes in valuation related to other-than-temporary impairments associated with auction rate securities ("ARS"). | ||||||||||||
Website and Advertising Costs | WEBSITE AND ADVERTISING COSTS | |||||||||||
Advertising costs are comprised of in-store photography, e-mail distribution and other digital direct advertising, and other media advertising. Beginning in Fiscal 2014, costs associated with cross-channel brand engagement campaigns and marketing events have been classified as advertising costs. Accordingly, the advertising expense disclosures for Fiscal 2013 and Fiscal 2012 have been revised to reflect this change. The production of in-store photography and signage are expensed when the marketing campaign commences as a component of Marketing, General and Administrative Expense on the Consolidated Statements of Operations and Comprehensive (Loss) Income. Website and other advertising costs related specifically to direct-to-consumer operations are expensed as incurred as a component of Stores and Distribution Expense on the Consolidated Statements of Operations and Comprehensive (Loss) Income. All other advertising costs are expensed as incurred as a component of Marketing, General and Administrative Expense on the Consolidated Statements of Operations and Comprehensive (Loss) Income. The Company recognized $84.6 million, $68.1 million and $59.0 million in advertising expense in Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | ||||||||||||
Leased Facilities | LEASED FACILITIES | |||||||||||
The Company leases property for its stores under operating leases. Lease agreements may contain construction allowances, rent escalation clauses and/or contingent rent provisions. | ||||||||||||
Annual store rent is comprised of a fixed minimum amount and/or contingent rent based on a percentage of sales. For construction allowances, the Company records a deferred lease credit on the Consolidated Balance Sheets and amortizes the deferred lease credit as a reduction of rent expense on the Consolidated Statements of Operations and Comprehensive (Loss) Income over the term of the lease. For scheduled rent escalation clauses during the lease term, the Company records minimum rental expense on a straight-line basis over the term of the lease on the Consolidated Statements of Operations and Comprehensive (Loss) Income. The difference between rent expense and the amounts paid under the lease, less amounts attributable to the repayment of construction allowances recorded as deferred rent, is included in Accrued Expenses and Other Liabilities on the Consolidated Balance Sheets. The term over which the Company amortizes construction allowances and minimum rental expenses on a straight-line basis begins on the date of initial possession, which is generally when the Company enters the space and begins construction. | ||||||||||||
Certain leases provide for contingent rents, which are determined as a percentage of gross sales. The Company records a contingent rent liability in Accrued Expenses on the Consolidated Balance Sheets, and the corresponding rent expense on the Consolidated Statements of Operations and Comprehensive (Loss) Income on a ratable basis over the measurement period when it is determined that achieving the specified levels during the fiscal year is probable. In addition, most leases require payment of real estate taxes, insurance and certain common area maintenance costs in addition to future minimum lease payments. | ||||||||||||
A summary of rent expense follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Store rent: | ||||||||||||
Fixed minimum(1) | $ | 432,794 | $ | 464,937 | $ | 414,061 | ||||||
Contingent | 8,886 | 8,624 | 16,828 | |||||||||
Deferred lease credits amortization | (38,437 | ) | (45,899 | ) | (45,926 | ) | ||||||
Total store rent expense | 403,243 | 427,662 | 384,963 | |||||||||
Buildings, equipment and other | 4,619 | 4,987 | 6,259 | |||||||||
Total rent expense | $ | 407,862 | $ | 432,649 | $ | 391,222 | ||||||
(1) Includes lease termination fees of $12.4 million, $39.2 million and $3.4 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. For Fiscal 2014 and Fiscal 2013, lease termination fees of $6.8 million and $39.1 million, respectively, related to the Gilly Hicks restructuring. | ||||||||||||
At January 31, 2015, the Company was committed to non-cancelable leases with remaining terms of one to 16 years. Excluded from the obligations below are portions of lease terms that are currently cancelable at the Company's discretion without condition. While included in the obligations below, in many instances the Company has options to terminate certain leases if stated sales volume levels are not met or the Company ceases operations in a given country, which may be subject to lease termination policies. | ||||||||||||
Leasehold Financing Obligations | LEASEHOLD FINANCING OBLIGATIONS | |||||||||||
In certain lease arrangements, the Company is involved in, or is deemed to be involved in, the construction or modification 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, including the portion funded by the landlord, and an amount related to the value attributed to the pre-existing leased building in Property and Equipment, Net, and a corresponding 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 allocates a portion of its rent obligation to the assets which are owned for accounting purposes as a reduction of the financing obligation and interest expense. | ||||||||||||
Store Pre-opening Expenses | STORE PRE-OPENING EXPENSES | |||||||||||
Pre-opening expenses related to new store openings are expensed as incurred and are reflected as a component of "Stores and Distribution Expense." | ||||||||||||
Design and Development Costs | DESIGN AND DEVELOPMENT COSTS | |||||||||||
Costs to design and develop the Company’s merchandise are expensed as incurred and are reflected as a component of “Marketing, General and Administrative Expense.” | ||||||||||||
Net Income Per Share | NET INCOME PER SHARE | |||||||||||
Net income per basic and diluted share is computed based on the weighted-average number of outstanding shares of Class A Common Stock (“Common Stock”). | ||||||||||||
Share-based Compensation | The fair value of share-based compensation awards is recognized as compensation expense primarily on a straight-line basis over the awards’ requisite service period, net of estimated forfeitures, with the exception of performance share awards. Performance share award expense is primarily recognized in the performance period of the awards' requisite service period. For awards that are expected to result in a tax deduction, a deferred tax asset is recorded in the period in which share-based compensation expense is recognized. A current tax deduction arises upon the vesting of restricted stock units and performance share awards or the exercise of stock options and stock appreciation rights and is principally measured at the award’s intrinsic value. If the tax deduction is greater than the recorded deferred tax asset, the tax benefit associated with any excess deduction is considered an excess tax benefit and is recognized as additional paid-in capital. If the tax deduction is less than the recorded deferred tax asset, the resulting difference, or shortfall, is first charged to additional paid-in capital, to the extent of the windfall pool of excess tax benefits, with any remainder recognized as tax expense. The Company’s windfall pool of excess tax benefits as of January 31, 2015, is sufficient to fully absorb any shortfall which may develop associated with awards currently outstanding. | |||||||||||
The Company adjusts share-based compensation expense on a quarterly basis for actual forfeitures and for changes to the estimate of expected award forfeitures. The effect of adjusting the forfeiture rate is recognized in the period the forfeiture estimate is changed. The effect of adjustments for forfeitures was $2.6 million, $2.3 million and $1.3 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | ||||||||||||
The Company issues shares of Common Stock from treasury stock upon exercise of stock options and stock appreciation rights and vesting of restricted stock units, including those converted from performance share awards. As of January 31, 2015, the Company had sufficient treasury stock available to settle stock options, stock appreciation rights, restricted stock units and performance share awards outstanding. Settlement of stock awards in Common Stock also requires that the Company has sufficient shares available in stockholder-approved plans at the applicable time. | ||||||||||||
In the event, at each reporting date during which share-based compensation awards remain outstanding, there are not sufficient shares of Common Stock available to be issued under the Amended and Restated Abercrombie & Fitch Co. 2007 Long-Term Incentive Plan (the “2007 LTIP”) and the Abercrombie & Fitch Co. 2005 Long-Term Incentive Plan (the “2005 LTIP”), or under a successor or replacement plan, the Company may be required to designate some portion of the outstanding awards to be settled in cash, which would result in liability classification of such awards. The fair value of liability-classified awards is re-measured each reporting date until such awards no longer remain outstanding or until sufficient shares of Common Stock become available to be issued under the existing plans or under a successor or replacement plan. As long as the awards are required to be classified as a liability, the change in fair value would be recognized in current period expense based on the requisite service period rendered. | ||||||||||||
Plans | ||||||||||||
As of January 31, 2015, the Company had two primary share-based compensation plans: the 2005 LTIP, under which the Company grants stock appreciation rights, restricted stock units and performance share awards to associates of the Company and non-associate members of the Company's Board of Directors, and the 2007 LTIP, under which the Company grants stock appreciation rights, restricted stock units and performance share awards to associates of the Company. The Company also has four other share-based compensation plans under which it granted stock options and restricted stock units to associates of the Company and non-associate members of the the Company's Board of Directors in prior years. | ||||||||||||
The 2007 LTIP, a stockholder-approved plan, permits the Company to annually grant awards covering up to 2.0 million of underlying shares of the Company's Common Stock for each type of award, per eligible participant, plus any unused annual limit from prior years. The 2005 LTIP, a stockholder-approved plan, permits the Company to annually grant awards covering up to 250,000 of underlying shares of the Company's Common Stock for each award type to any associate of the Company (other than the Chief Executive Officer (the "CEO")) who is subject to Section 16 of the Securities Exchange Act of 1934, as amended, at the time of the grant, plus any unused annual limit from prior years. In addition, any non-associate director of the Company is eligible to receive awards under the 2005 LTIP. Under both plans, stock appreciation rights and restricted stock units vest primarily over four years for associates, while performance share awards are primarily earned and vest over the performance period. Under the 2005 LTIP, restricted stock units typically vest after approximately one year for non-associate directors of the Company. Under both plans, stock options have a ten-year term and stock appreciation rights have up to a ten-year term, subject to forfeiture under the terms of the plans. The plans provide for accelerated vesting if there is a change of control as defined in the plans. | ||||||||||||
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS | |||||||||||
In July 2013, the Financial Accounting Standards Board ("FASB") issued Account Standards Update ("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 Accounting Standards Codification ("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 were effective at the beginning of Fiscal 2014. The adoption of this guidance 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)." The new ASC guidance 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 which the entity expects to be entitled to in exchange for those goods or services. This guidance is effective for the Company beginning Fiscal 2017, and is to be applied retrospectively, with early application not permitted. The Company is currently evaluating the potential impact of this standard. | ||||||||||||
In June 2014, FASB issued ASU No. 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period," which amends ASC 718, "Compensation—Stock Compensation." The amendment provides guidance on the treatment of share-based payments awards with a specific performance target, requiring that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This guidance is effective for the Company at the beginning of Fiscal 2016 with early adoption permitted. The adoption of this amendment is not expected to have a material impact on the Company's consolidated financial statements. | ||||||||||||
In February 2015, FASB issued ASU No. 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis." These amendments provide guidance which change the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance is effective for the Company at the beginning of Fiscal 2017 with early adoption permitted. The adoption of this amendment is not expected to have a material impact on the Company's consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Schedule of Rent Expense | A summary of rent expense follows (in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Store rent: | ||||||||||||
Fixed minimum(1) | $ | 432,794 | $ | 464,937 | $ | 414,061 | ||||||
Contingent | 8,886 | 8,624 | 16,828 | |||||||||
Deferred lease credits amortization | (38,437 | ) | (45,899 | ) | (45,926 | ) | ||||||
Total store rent expense | 403,243 | 427,662 | 384,963 | |||||||||
Buildings, equipment and other | 4,619 | 4,987 | 6,259 | |||||||||
Total rent expense | $ | 407,862 | $ | 432,649 | $ | 391,222 | ||||||
(1) Includes lease termination fees of $12.4 million, $39.2 million and $3.4 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. For Fiscal 2014 and Fiscal 2013, lease termination fees of $6.8 million and $39.1 million, respectively, related to the Gilly Hicks restructuring. | ||||||||||||
Schedule of Operating Lease Commitments Under Non-Cancelable Leases | A summary of operating lease commitments, including leasehold financing obligations, under non-cancelable leases follows (in thousands): | |||||||||||
Fiscal 2015 | $ | 409,046 | ||||||||||
Fiscal 2016 | $ | 366,909 | ||||||||||
Fiscal 2017 | $ | 279,960 | ||||||||||
Fiscal 2018 | $ | 210,674 | ||||||||||
Fiscal 2019 | $ | 165,307 | ||||||||||
Thereafter | $ | 525,286 | ||||||||||
Schedule of Weighted Average Number of Shares | Weighted-Average Shares Outstanding and Anti-Dilutive Shares (in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Shares of Common Stock issued | 103,300 | 103,300 | 103,300 | |||||||||
Treasury shares | (31,515 | ) | (26,143 | ) | (21,360 | ) | ||||||
Weighted-Average — Basic shares | 71,785 | 77,157 | 81,940 | |||||||||
Dilutive effect of share-based compensation awards | 1,152 | 1,509 | 1,235 | |||||||||
Weighted-Average — Diluted shares | 72,937 | 78,666 | 83,175 | |||||||||
Anti-dilutive shares (1) | 6,144 | 4,630 | 5,228 | |||||||||
(1) | Reflects the number of shares subject to outstanding share-based compensation awards but excluded from the computation of net income per diluted share because the impact would be anti-dilutive. |
Share_Based_Compensation_Table
Share Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||
Schedule of Stock Option Activity | Below is a summary of stock option activity for Fiscal 2014: | |||||||||||||||||||||||
Number of | Weighted- | Aggregate | Weighted-Average | |||||||||||||||||||||
Underlying | Average | Intrinsic Value | Remaining | |||||||||||||||||||||
Shares | Exercise Price | Contractual Life | ||||||||||||||||||||||
Outstanding at February 1, 2014 | 532,400 | $ | 65.37 | |||||||||||||||||||||
Granted | — | — | ||||||||||||||||||||||
Exercised | (7,500 | ) | 33.74 | |||||||||||||||||||||
Forfeited or expired | (196,800 | ) | 67.79 | |||||||||||||||||||||
Outstanding at January 31, 2015 | 328,100 | $ | 64.64 | $ | 310,100 | 2.6 | ||||||||||||||||||
Stock options exercisable at January 31, 2015 | 328,100 | $ | 64.64 | $ | 310,100 | 2.6 | ||||||||||||||||||
Schedule of Stock Appreciation Rights Activity | The following table summarizes stock appreciation rights activity for Fiscal 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 | 512,216 | 36.31 | ||||||||||||||||||||||
Exercised | (92,475 | ) | 26.92 | |||||||||||||||||||||
Forfeited or expired | (449,025 | ) | 48.03 | |||||||||||||||||||||
Outstanding at January 31, 2015 | 8,953,675 | $ | 40.28 | $ | 5,099,000 | 2.6 | ||||||||||||||||||
Stock appreciation rights exercisable at January 31, 2015 | 8,152,634 | $ | 40.17 | $ | 5,099,000 | 2 | ||||||||||||||||||
Stock appreciation rights expected to become exercisable in the future as of January 31, 2015 | 739,920 | $ | 41.69 | $ | — | 8.6 | ||||||||||||||||||
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 Fiscal 2014, Fiscal 2013 and Fiscal 2012 were as follows: | |||||||||||||||||||||||
Executive Officers | All Other Associates | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Grant date market price | $ | 35.08 | $ | 46.57 | $ | 52.89 | $ | 37.05 | $ | 43.86 | $ | 51.31 | ||||||||||||
Exercise price | $ | 35.49 | $ | 46.57 | $ | 52.89 | $ | 37.22 | $ | 43.86 | $ | 51.31 | ||||||||||||
Fair value | $ | 12.85 | $ | 20.34 | $ | 23.53 | $ | 12.92 | $ | 16.17 | $ | 21.9 | ||||||||||||
Assumptions: | ||||||||||||||||||||||||
Price volatility | 49 | % | 61 | % | 56 | % | 50 | % | 53 | % | 61 | % | ||||||||||||
Expected term (years) | 4.9 | 4.7 | 5 | 4.1 | 4.1 | 4.1 | ||||||||||||||||||
Risk-free interest rate | 1.6 | % | 0.7 | % | 1.3 | % | 1.4 | % | 0.7 | % | 0.9 | % | ||||||||||||
Dividend yield | 2 | % | 1.8 | % | 1.1 | % | 1.9 | % | 1.8 | % | 1.2 | % | ||||||||||||
Schedule of Restricted Stock Unit Activity | The following table summarizes the activity for restricted stock units for Fiscal 2014: | |||||||||||||||||||||||
Service-based Restricted Stock Units | Performance-based Restricted Stock Units | Market-based Restricted Stock Units | ||||||||||||||||||||||
Number of Underlying | Weighted-Average Grant | Number of Underlying | Weighted-Average Grant | Number of Underlying | Weighted-Average Grant | |||||||||||||||||||
Shares | Date Fair Value | Shares | Date Fair Value | Shares | Date Fair Value | |||||||||||||||||||
Unvested at February 1, 2014 | 1,162,825 | $ | 47.15 | 263,754 | $ | 40.93 | — | $ | — | |||||||||||||||
Granted | 1,019,363 | 32.45 | 177,006 | 26.61 | 88,500 | 42.44 | ||||||||||||||||||
Adjustments for performance achievement relative to award target | — | — | (98,483 | ) | 44.51 | — | — | |||||||||||||||||
Vested | (355,796 | ) | 48 | (10,002 | ) | 51.5 | — | — | ||||||||||||||||
Forfeited | (260,120 | ) | 44.59 | (126,855 | ) | 31.71 | (52,126 | ) | 44.05 | |||||||||||||||
Unvested at January 31, 2015 | 1,566,272 | $ | 37.81 | 205,420 | $ | 32.05 | 36,374 | $ | 40.13 | |||||||||||||||
Market-based Restricted Stock Units (RSUs) | ||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||
Schedule of Weighted-Average Estimated Fair Value and Assumptions of Market-based Restricted Stock Units | The weighted-average assumptions for market-based restricted stock units used in the Monte Carlo simulations during Fiscal 2014 were as follows: | |||||||||||||||||||||||
Fiscal 2014 | ||||||||||||||||||||||||
Grant date market price | $ | 36.2 | ||||||||||||||||||||||
Fair value | $ | 40.42 | ||||||||||||||||||||||
Assumptions: | ||||||||||||||||||||||||
Price volatility | 49 | % | ||||||||||||||||||||||
Expected term (years) | 2.7 | |||||||||||||||||||||||
Risk-free interest rate | 0.8 | % | ||||||||||||||||||||||
Dividend yield | 2.2 | % | ||||||||||||||||||||||
Average volatility of peer companies | 36 | % | ||||||||||||||||||||||
Average correlation coefficient of peer companies | 0.3704 | |||||||||||||||||||||||
Rabbi_Trust_Assets_Tables
Rabbi Trust Assets (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||
Components of Rabbi Trust Assets | ||||||||
(in thousands) | 31-Jan-15 | 1-Feb-14 | ||||||
Rabbi Trust assets: | ||||||||
Trust-owned life insurance policies (at cash surrender value) | $ | 93,424 | $ | 90,198 | ||||
Money market funds | 24 | 24 | ||||||
Total Rabbi Trust assets | $ | 93,448 | $ | 90,222 | ||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Schedule of the Company's Assets and Liabilities measured at Fair Value | The three levels of the hierarchy and the distribution within it of the Company’s assets and liabilities, measured at fair value on a recurring basis, were as follows: | |||||||||||||||
Assets and Liabilities at Fair Value as of January 31, 2015 | ||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
ASSETS: | ||||||||||||||||
Money market funds | $ | 122,047 | $ | — | $ | — | $ | 122,047 | ||||||||
Derivative financial instruments | — | 10,293 | — | 10,293 | ||||||||||||
Total assets measured at fair value | $ | 122,047 | $ | 10,293 | $ | — | $ | 132,340 | ||||||||
LIABILITIES: | ||||||||||||||||
Derivative financial instruments | — | — | — | — | ||||||||||||
Total liabilities measured at fair value | $ | — | $ | — | $ | — | $ | — | ||||||||
Assets and Liabilities at Fair Value as of February 1, 2014 | ||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
ASSETS: | ||||||||||||||||
Money market funds | $ | 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 | ||||||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Schedule of Property and Equipment, Net | Property and equipment, net, consisted of (in thousands): | |||||||
31-Jan-15 | 1-Feb-14 | |||||||
Land | $ | 37,473 | $ | 37,453 | ||||
Buildings | 286,820 | 296,382 | ||||||
Furniture, fixtures and equipment | 653,929 | 689,815 | ||||||
Information technology | 427,879 | 369,257 | ||||||
Leasehold improvements | 1,338,206 | 1,414,939 | ||||||
Construction in progress | 49,836 | 33,791 | ||||||
Other | 3,107 | 44,075 | ||||||
Total | $ | 2,797,250 | $ | 2,885,712 | ||||
Less: Accumulated depreciation and amortization | (1,830,249 | ) | (1,754,371 | ) | ||||
Property and equipment, net | $ | 967,001 | $ | 1,131,341 | ||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Other Assets, Noncurrent Disclosure [Abstract] | ||||||||
Schedule of Other Assets | Other assets consisted of (in thousands): | |||||||
January 31, 2015 | February 1, 2014 | |||||||
Non-current deferred tax assets | $ | 96,999 | $ | 97,587 | ||||
Rabbi Trust | 93,448 | 90,222 | ||||||
Long-term deposits | 64,415 | 68,886 | ||||||
Long-term supplies | 31,565 | 36,008 | ||||||
Intellectual property | 27,943 | 30,987 | ||||||
Restricted cash | 14,835 | 26,686 | ||||||
Prepaid income tax on intercompany items | 9,968 | 12,421 | ||||||
Other | 34,021 | 36,293 | ||||||
Other assets | $ | 373,194 | $ | 399,090 | ||||
Deferred_Lease_Credits_Tables
Deferred Lease Credits (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Deferred Lease Credits [Abstract] | ||||||||
Schedule of Deferred Lease Credits | The amounts, which are amortized over the respective terms of the related leases, consisting of the following (in thousands): | |||||||
January 31, 2015 | February 1, 2014 | |||||||
Deferred lease credits | $ | 490,452 | $ | 543,040 | ||||
Amortized deferred lease credits | (357,430 | ) | (366,076 | ) | ||||
Total deferred lease credits, net | $ | 133,022 | $ | 176,964 | ||||
Less: short-term portion of deferred lease credits | (26,629 | ) | (36,165 | ) | ||||
Long-term portion of deferred lease credits | $ | 106,393 | $ | 140,799 | ||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Schedule of Accrued Expenses | Accrued expenses consisted of (in thousands): | |||||||
January 31, 2015 | February 1, 2014 | |||||||
Accrued payroll and related costs | $ | 56,384 | $ | 49,878 | ||||
Gift card liability | 36,936 | 42,512 | ||||||
Accrued taxes | 34,629 | 44,100 | ||||||
Construction in progress | 30,661 | 23,634 | ||||||
Accrued rent | 25,607 | 59,997 | ||||||
Other | 98,519 | 102,713 | ||||||
Accrued expenses | $ | 282,736 | $ | 322,834 | ||||
Other_Liabilities_Tables
Other Liabilities (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Other Liabilities Disclosure [Abstract] | ||||||||
Schedule of Other Liabilities | Other liabilities consisted of (in thousands): | |||||||
January 31, 2015 | February 1, 2014 | |||||||
Accrued straight-line rent | $ | 99,108 | $ | 114,001 | ||||
Deferred compensation | 56,244 | 87,385 | ||||||
Uncertain tax positions, including interest and penalties | 4,572 | 5,777 | ||||||
Other | 21,362 | 24,594 | ||||||
Other liabilities | $ | 181,286 | $ | 231,757 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | Income before taxes was comprised of: | |||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | |||||||||
Domestic | $ | 100,115 | $ | 37,325 | $ | 302,589 | ||||||
Foreign | (961 | ) | 35,952 | 64,356 | ||||||||
Total | $ | 99,154 | $ | 73,277 | $ | 366,945 | ||||||
Schedule of Components of Income Tax Expense (Benefit) | The provision for tax expense consisted of: | |||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | |||||||||
Current: | ||||||||||||
Federal | $ | 21,287 | $ | 52,579 | $ | 111,761 | ||||||
State | 1,944 | (4,988 | ) | 15,323 | ||||||||
Foreign | 28,614 | 17,851 | 17,984 | |||||||||
$ | 51,845 | $ | 65,442 | $ | 145,068 | |||||||
Deferred: | ||||||||||||
Federal | $ | 8,971 | $ | (36,732 | ) | $ | (10,456 | ) | ||||
State | 1,783 | (4,606 | ) | 458 | ||||||||
Foreign | (15,266 | ) | (5,455 | ) | (5,136 | ) | ||||||
$ | (4,512 | ) | $ | (46,793 | ) | $ | (15,134 | ) | ||||
Total provision | $ | 47,333 | $ | 18,649 | $ | 129,934 | ||||||
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation between the statutory federal income tax rate and the effective tax rate is as follows: | |||||||||||
Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
U.S. Federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State income tax, net of U.S. federal income tax effect | 4.3 | (4.1 | ) | 2.7 | ||||||||
Taxation of non-U.S. operations (1) | 5.4 | 2 | (1.4 | ) | ||||||||
Net change in valuation allowances | 6.6 | 0.1 | (0.2 | ) | ||||||||
Audit and other adjustments to prior years' accruals | (1.3 | ) | (5.6 | ) | — | |||||||
Other items (including permanent items and credits), net | (2.3 | ) | (1.9 | ) | (0.7 | ) | ||||||
Total | 47.7 | % | 25.5 | % | 35.4 | % | ||||||
Schedule of Deferred Tax Assets and Liabilities | The effect of temporary differences which gives rise to deferred income tax assets (liabilities) were as follows: | |||||||||||
(in thousands) | January 31, 2015 | February 1, 2014 | ||||||||||
Deferred tax assets: | ||||||||||||
Deferred compensation | $ | 83,157 | $ | 91,585 | ||||||||
Accrued expenses and reserves | 17,695 | 22,403 | ||||||||||
Rent | 38,881 | 49,170 | ||||||||||
Net operating losses (NOL) and credit carryforwards | 14,897 | 12,611 | ||||||||||
Other | 1,403 | 307 | ||||||||||
Valuation allowances | (6,730 | ) | (202 | ) | ||||||||
Total deferred tax assets | $ | 149,303 | $ | 175,874 | ||||||||
Deferred tax liabilities: | ||||||||||||
Property, equipment and intangibles | (16,059 | ) | (36,266 | ) | ||||||||
Inventory | (11,332 | ) | (8,487 | ) | ||||||||
Store supplies | (7,046 | ) | (7,798 | ) | ||||||||
Prepaid expenses | (2,438 | ) | (2,116 | ) | ||||||||
Other | (1,424 | ) | (3,754 | ) | ||||||||
Total deferred tax liabilities | $ | (38,299 | ) | $ | (58,421 | ) | ||||||
Net deferred income tax assets | $ | 111,004 | $ | 117,453 | ||||||||
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible | A reconciliation of the beginning and ending amounts of uncertain tax positions is as follows: | |||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | |||||||||
Uncertain tax positions, beginning of the year | $ | 4,182 | $ | 11,116 | $ | 13,404 | ||||||
Gross addition for tax positions of the current year | 152 | 449 | 1,084 | |||||||||
Gross addition for tax positions of prior years | 33 | 30 | 227 | |||||||||
Reductions of tax positions of prior years for: | ||||||||||||
Lapses of applicable statutes of limitations | (348 | ) | (2,880 | ) | (2,053 | ) | ||||||
Settlements during the period | (4 | ) | (3,936 | ) | (1,480 | ) | ||||||
Changes in judgment | (803 | ) | (597 | ) | (66 | ) | ||||||
Uncertain tax positions, end of year | $ | 3,212 | $ | 4,182 | $ | 11,116 | ||||||
Borrowings_Borrowings_net_Tabl
Borrowings Borrowings, net (Tables) | 12 Months Ended | |||
Jan. 31, 2015 | ||||
Debt Disclosure [Abstract] | ||||
Schedule of Borrowings | Net borrowings as of January 31, 2015 were as follows: | |||
(in thousands) | January 31, 2015 | |||
Borrowings, gross at carrying amount | $ | 299,250 | ||
Unamortized discount | (2,786 | ) | ||
Unamortized fees paid to lenders | (3,052 | ) | ||
Borrowings, net | $ | 293,412 | ||
Less: short-term portion of borrowings, net of discount and fees of $0.9M | (2,102 | ) | ||
Long-term portion of borrowings, net | $ | 291,310 | ||
Schedule of Future Payments of the Term Loan Facility | A summary of future minimum payments under the Term Loan facility is as follows (in thousands): | |||
Fiscal 2015 | $ | 3,000 | ||
Fiscal 2016 | $ | 3,000 | ||
Fiscal 2017 | $ | 3,000 | ||
Fiscal 2018 | $ | 3,000 | ||
Fiscal 2019 | $ | 3,000 | ||
Thereafter | $ | 284,250 | ||
Derivatives_Tables
Derivatives (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||
Schedule of Outstanding Foreign Exchange Forward Contracts | As of January 31, 2015, the Company had the following outstanding 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 | $ | 53,120 | ||||||||||||||||||||||||||
British Pound | $ | 18,345 | ||||||||||||||||||||||||||
Canadian Dollar | $ | 10,705 | ||||||||||||||||||||||||||
(1) | Amounts are reported in thousands and in U.S. Dollars equivalent as of January 31, 2015. | |||||||||||||||||||||||||||
As of January 31, 2015, the Company had outstanding the following foreign currency exchange forward contracts that were entered into to hedge foreign currency denominated net monetary assets/liabilities: | ||||||||||||||||||||||||||||
Notional Amount(1) | ||||||||||||||||||||||||||||
Euro | $ | 5,659 | ||||||||||||||||||||||||||
British Pound | $ | 3,763 | ||||||||||||||||||||||||||
(1) | Amounts are reported in thousands and in U.S. Dollars equivalent as of January 31, 2015. | |||||||||||||||||||||||||||
Schedule of Locations 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 January 31, 2015 and February 1, 2014 were as follows: | |||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||
(in thousands) | Balance Sheet Location | 31-Jan-15 | 1-Feb-14 | Balance Sheet Location | 31-Jan-15 | 1-Feb-14 | ||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||
Foreign currency exchange forward contracts | Other Current Assets | $ | 10,283 | $ | 691 | Other Liabilities | $ | — | $ | 2,503 | ||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||
Foreign currency exchange forward contracts | Other Current Assets | $ | 10 | $ | 278 | Other Liabilities | $ | — | $ | 52 | ||||||||||||||||||
Total | Other Current Assets | $ | 10,293 | $ | 969 | Other Liabilities | $ | — | $ | 2,555 | ||||||||||||||||||
Schedule of Locations and Amounts of Derivative Gains (Losses) on the Consolidated Statements of Operations and Comprehensive Income | The location and amounts of derivative gains and losses for Fiscal 2014 and Fiscal 2013 on the Consolidated Statements of Operations and Comprehensive (Loss) Income were as follows: | |||||||||||||||||||||||||||
Fiscal 2014 | Fiscal 2013 | |||||||||||||||||||||||||||
(in thousands) | Location | Gain/(Loss) | Gain/(Loss) | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||
Foreign currency exchange forward contracts | Other Operating Income, Net | $ | 2,537 | $ | 378 | |||||||||||||||||||||||
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) | ||||||||||||||||||||||||
(in thousands) | January 31, | February 1, | January 31, | February 1, | January 31, | February 1, | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
Derivatives in cash flow hedging relationships | ||||||||||||||||||||||||||||
Foreign currency exchange forward contracts | $ | 16,572 | $ | 6,435 | Cost of Goods Sold | $ | 440 | $ | 857 | Other Operating Income, Net | $ | 215 | $ | 248 | ||||||||||||||
(a) | The amount represents the change in fair value of derivative contracts due to changes in spot rates. | |||||||||||||||||||||||||||
(b) | The amount represents reclassification from OCI into earnings that occurs 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 (Loss) Income (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive (Loss) Income | The activity in accumulated other comprehensive (loss) income for Fiscal 2014 was as follows: | The activity in accumulated other comprehensive (loss) income for Fiscal 2013 was as follows: | The activity in accumulated other comprehensive (loss) income for Fiscal 2012 was as follows: | |||||||||||||||||||||||||||||||||
Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||||||||||||||||||||||||||
(in thousands) | Unrealized (Loss) Gain on Derivative Financial Instruments | Foreign Currency Translation Adjustment | Total | (in thousands) | Unrealized (Loss) Gain on Derivative Financial Instruments | Foreign Currency Translation Adjustment | Total | (in thousands) | Unrealized (Loss) Gain on Derivative Financial Instruments | Foreign Currency Translation Adjustment | Total | |||||||||||||||||||||||||
Beginning balance at February 1, 2014 | $ | (2,166 | ) | $ | (18,751 | ) | $ | (20,917 | ) | Beginning balance February 2, 2013 | $ | (7,220 | ) | $ | (6,068 | ) | $ | (13,288 | ) | Beginning balance January 28, 2012 | $ | 11,932 | $ | (5,641 | ) | $ | 6,291 | |||||||||
Other comprehensive income (loss) before reclassifications | 16,572 | (76,891 | ) | (60,319 | ) | Other comprehensive income (loss) before reclassifications | 6,435 | (12,683 | ) | (6,248 | ) | |||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (4,003 | ) | (427 | ) | (4,430 | ) | ||||||||||||||||||||||||||||||
Reclassified from accumulated other comprehensive (loss) income(1) | (440 | ) | — | (440 | ) | Reclassified from accumulated other comprehensive (loss) income(1) | (857 | ) | — | (857 | ) | Reclassified from accumulated other comprehensive (loss) income(1) | (17,510 | ) | — | (17,510 | ) | |||||||||||||||||||
Tax effect on other comprehensive income (loss) | (866 | ) | (1,038 | ) | (1,904 | ) | Tax effect on other comprehensive income (loss) | (524 | ) | — | (524 | ) | Tax effect on other comprehensive income (loss) | 2,361 | — | 2,361 | ||||||||||||||||||||
Other comprehensive income (loss) | 15,266 | (77,929 | ) | (62,663 | ) | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 5,054 | (12,683 | ) | (7,629 | ) | Other comprehensive income (loss) | (19,152 | ) | (427 | ) | (19,579 | ) | ||||||||||||||||||||||||
Ending balance at January 31, 2015 | $ | 13,100 | $ | (96,680 | ) | $ | (83,580 | ) | Ending balance at February 2, 2013 | $ | (7,220 | ) | $ | (6,068 | ) | $ | (13,288 | ) | ||||||||||||||||||
Ending balance at February 1, 2014 | $ | (2,166 | ) | $ | (18,751 | ) | $ | (20,917 | ) | |||||||||||||||||||||||||||
(1) | For Fiscal 2012 the gain or loss was reclassified from Other Comprehensive (Loss) Income to the Cost of Goods Sold line item on the Consolidated Statement of Operations and Comprehensive (Loss) Income. | |||||||||||||||||||||||||||||||||||
(1) | For Fiscal 2014 the gain or loss was reclassified from Other Comprehensive (Loss) Income to the Cost of Goods Sold line item on the Consolidated Statement of Operations and Comprehensive (Loss) Income. | (1) | For Fiscal 2013 the gain or loss was reclassified from Other Comprehensive (Loss) Income to the Cost of Goods Sold line item on the Consolidated Statement of Operations and Comprehensive (Loss) Income. |
Gilly_Hicks_Restructuring_Tabl
Gilly Hicks Restructuring (Tables) | 12 Months Ended | |||
Jan. 31, 2015 | ||||
Restructuring and Related Activities [Abstract] | ||||
Schedule of pre-tax charges incurred to-date related to the closure of the Gilly Hicks stores | Below is a summary of the aggregate pre-tax charges incurred through January 31, 2015 related to the closure of the Gilly Hicks branded stores (in thousands): | |||
Lease terminations and store closure costs | $ | 48,665 | ||
Asset impairment | 40,036 | |||
Other | 1,230 | |||
Total charges (1) | $ | 89,931 | ||
(1) | As of January 31, 2015, the Company incurred aggregate pre-tax charges related to restructuring plans for the Gilly Hicks brand of $50.4 million for the U.S. Stores segment and $39.5 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 $1.3 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 January 31, 2015, related to the closure of the Gilly Hicks stores (in thousands): | ||||
Accrued liability as of February 1, 2014 | $ | 42,507 | ||
Costs incurred | 11,631 | |||
Cash payments | (48,141 | ) | ||
Accrued liability as of January 31, 2015 | $ | 5,997 | ||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | ||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||
Schedule of Segment Information, by Segment | The following table provides the Company’s segment information as of, and for the fiscal years ended January 31, 2015, February 1, 2014 and February 2, 2013. | ||||||||||||||||||||||
(in thousands) | U.S. Stores | International | Direct-to- | Segment | Other(1) | Total | |||||||||||||||||
Stores | Consumer | Total | |||||||||||||||||||||
Operations | |||||||||||||||||||||||
31-Jan-15 | |||||||||||||||||||||||
Net Sales | $ | 1,878,542 | $ | 1,032,946 | $ | 832,542 | $ | 3,744,030 | — | $ | 3,744,030 | ||||||||||||
Depreciation and Amortization | 55,339 | 98,243 | 16,298 | 169,880 | 56,541 | 226,421 | |||||||||||||||||
Operating Income(2) | 261,446 | 204,262 | 269,564 | 735,272 | (621,753 | ) | 113,519 | ||||||||||||||||
Total Assets | 349,088 | 616,336 | 150,228 | 1,115,652 | 1,389,515 | 2,505,167 | |||||||||||||||||
Capital Expenditures(3) | 41,887 | 44,429 | 55,007 | 141,323 | 33,301 | 174,624 | |||||||||||||||||
1-Feb-14 | |||||||||||||||||||||||
Net Sales | 2,161,183 | 1,178,798 | 776,916 | 4,116,897 | — | 4,116,897 | |||||||||||||||||
Depreciation and Amortization | 75,297 | 92,474 | 7,850 | 175,621 | 59,619 | 235,240 | |||||||||||||||||
Operating Income(4) | 194,582 | 249,331 | 294,951 | 738,864 | (658,041 | ) | 80,823 | ||||||||||||||||
Total Assets | 414,463 | 805,257 | 122,381 | 1,342,101 | 1,508,896 | 2,850,997 | |||||||||||||||||
Capital Expenditures | 18,599 | 82,805 | 15,633 | 117,037 | 46,887 | 163,924 | |||||||||||||||||
2-Feb-13 | |||||||||||||||||||||||
Net Sales | 2,615,138 | 1,195,016 | 700,651 | 4,510,805 | — | 4,510,805 | |||||||||||||||||
Depreciation and Amortization | 94,367 | 67,972 | 5,198 | 167,537 | 56,708 | 224,245 | |||||||||||||||||
Operating Income(5) | 432,040 | 350,871 | 269,479 | 1,052,390 | (678,157 | ) | 374,233 | ||||||||||||||||
Total Assets | 587,334 | 840,317 | 63,063 | 1,490,714 | 1,496,687 | 2,987,401 | |||||||||||||||||
Capital Expenditures | 3,016 | 218,933 | 22,567 | 244,516 | 95,346 | 339,862 | |||||||||||||||||
(1) | Includes corporate functions 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. Operating Income includes: 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. A reconciliation of segment operating income to consolidated operating income is provided below. | ||||||||||||||||||||||
(2) | Includes charges related to asset impairment, lease terminations and store closures, the restructuring of the Gilly Hicks brand, the Company's profit improvement initiative, CEO transition costs and corporate governance matters of which $6.1 million is included in U.S. stores, $43.6 million is included in International Stores, $0.4 million is included in Direct-to-Consumer Operations and $28.1 million is included in Other for Fiscal 2014. | ||||||||||||||||||||||
(3) | Capital expenditures of $35.6 million related to the conversion of one of the Company's Columbus, Ohio distribution centers to a dedicated Direct-to-Consumer distribution center are included in Direct-to-Consumer Operations. | ||||||||||||||||||||||
(4) | Includes charges related to asset impairment, restructuring plans of the Gilly Hicks brand and the Company's profit improvement initiative of $94.9 million for U.S. Stores, $33.3 million for International Stores and $13.8 million for Other for Fiscal 2013. | ||||||||||||||||||||||
(5) | Includes charges for asset impairments of $7.4 million for U.S. Stores for Fiscal 2012. | ||||||||||||||||||||||
Schedule of Net Sales by Brand | Net sales by brand were as follows: | ||||||||||||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||||||||||||
Abercrombie & Fitch | $ | 1,449,946 | $ | 1,547,216 | $ | 1,704,190 | |||||||||||||||||
abercrombie | 321,353 | 346,739 | 382,509 | ||||||||||||||||||||
Hollister | 1,947,869 | 2,127,816 | 2,314,462 | ||||||||||||||||||||
Gilly Hicks | 24,862 | 95,126 | 109,644 | ||||||||||||||||||||
Total | $ | 3,744,030 | $ | 4,116,897 | $ | 4,510,805 | |||||||||||||||||
Schedule of Net Sales and Long-Lived Assets, by Geographical Areas | Net sales by geographic area were as follows: | ||||||||||||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||||||||||||
United States | $ | 2,408,427 | $ | 2,659,089 | $ | 3,087,205 | |||||||||||||||||
Europe | 959,981 | 1,116,781 | 1,137,664 | ||||||||||||||||||||
Other International | 375,622 | 341,027 | 285,936 | ||||||||||||||||||||
Total | $ | 3,744,030 | $ | 4,116,897 | $ | 4,510,805 | |||||||||||||||||
Net long-lived assets by geographic area, which include primarily property and equipment (net), store supplies and lease deposits, were as follows: | |||||||||||||||||||||||
(in thousands) | 31-Jan-15 | 1-Feb-14 | |||||||||||||||||||||
United States | $ | 581,430 | $ | 606,758 | |||||||||||||||||||
Europe | 326,726 | 438,931 | |||||||||||||||||||||
Other International | 158,743 | 191,312 | |||||||||||||||||||||
Total | $ | 1,066,899 | $ | 1,237,001 | |||||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | A reconciliation of the Company's segment operating income to the consolidated operating income reported in the Company's Consolidated Statements of Operations and Comprehensive (Loss) Income follows: | ||||||||||||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||||||||||||
Segment Operating Income | $ | 735,272 | $ | 738,864 | $ | 1,052,390 | |||||||||||||||||
Operating (Loss) Income Not Attributable to Segments: | |||||||||||||||||||||||
Stores and Distribution Expense | (164,765 | ) | (198,910 | ) | (223,611 | ) | |||||||||||||||||
Marketing, General and Administrative Expense | (460,917 | ) | (481,783 | ) | (473,880 | ) | |||||||||||||||||
Restructuring Charges | — | (421 | ) | — | |||||||||||||||||||
Asset Impairment | (11,310 | ) | — | — | |||||||||||||||||||
Other Operating Income, Net | 15,239 | 23,073 | 19,334 | ||||||||||||||||||||
Operating Income | $ | 113,519 | $ | 80,823 | $ | 374,233 | |||||||||||||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||
Schedule of Quarterly Financial Information | Summarized unaudited quarterly financial results for Fiscal 2014 and Fiscal 2013 follows (in thousands, except per share amounts): | |||||||||||||||
Fiscal Quarter 2014(10) | First(2) | Second(3) | Third(4) | Fourth(5) | ||||||||||||
Net sales | $ | 822,428 | $ | 890,605 | $ | 911,453 | $ | 1,119,544 | ||||||||
Gross profit | $ | 511,659 | $ | 552,956 | $ | 567,070 | $ | 681,885 | ||||||||
Net income (loss) | $ | (23,671 | ) | $ | 12,877 | $ | 18,227 | $ | 44,388 | |||||||
Net income (loss) per diluted share(1) | $ | (0.32 | ) | $ | 0.17 | $ | 0.25 | $ | 0.63 | |||||||
Fiscal Quarter 2013(10) | First(6) | Second(7) | Third(8) | Fourth(9) | ||||||||||||
Net sales | $ | 838,769 | $ | 945,698 | $ | 1,033,293 | $ | 1,299,137 | ||||||||
Gross profit | $ | 553,166 | $ | 604,122 | $ | 651,040 | $ | 767,107 | ||||||||
Net income (loss) | $ | (7,203 | ) | $ | 11,370 | $ | (15,644 | ) | $ | 66,106 | ||||||
Net income (loss) per diluted share(1) | $ | (0.09 | ) | $ | 0.14 | $ | (0.20 | ) | $ | 0.85 | ||||||
(1) | Net income (loss) per diluted share (Diluted EPS) was computed individually for each of the quarters presented using weighted average number of shares outstanding during the quarter while Diluted EPS for the full year is computed using the average of the weighted average number of shares outstanding each quarter; therefore, the sum of Diluted EPS for the quarters may not equal the total for the year. | |||||||||||||||
(2) | The first quarter of Fiscal 2014 included pre-tax charges of $6.9 million related to certain corporate governance matters, $5.6 million related to the restructuring of the Gilly Hicks brand, and $3.1 million related to the Company's profit improvement initiative. Net loss per diluted share included $0.15 related to the charges. The thirteen weeks ended May 3, 2014 included correction of certain errors relating to prior periods. The out-of-period correction of errors resulted in an increase to loss before taxes of $1.5 million, or $0.9 million after tax. | |||||||||||||||
(3) | The second quarter of Fiscal 2014 included pre-tax charges of $2.0 million related to the Company's profit improvement initiative and $0.4 million related to the restructuring of the Gilly Hicks brand. Net income per diluted share included $0.02 related to the charges. The thirteen and twenty-six weeks ended August 2, 2014 included the correction of certain errors relating to prior periods. The out-of-period correction of errors resulted in a decrease to income before taxes of $1.4 million, or $0.9 million after tax, resulting in a $0.9 million to net income for the thirteen weeks ended August 2, 2014. The out-of-period correction of errors resulted in an increase to loss before taxes of $2.9 million, or $1.7 million after tax for the twenty-six weeks ended August 2, 2014. | |||||||||||||||
(4) | The third quarter of Fiscal 2014 included pre-tax charges of $16.7 million for asset impairment, $2.3 million related to lease terminations and store closures, $0.7 million related to the Company's profit improvement initiative and $0.6 million related to certain corporate governance matters. Net income per diluted share included $0.17 related to the charges. The thirteen and thirty-nine weeks ended November 1, 2014 included the correction of certain errors relating to prior periods. The out-of-period correction of errors resulted in a decrease to income before taxes of $0.6 million, or $0.4 million after tax, and an unrelated tax charge of $0.4 million, for a combined reduction to net income of $0.8 million for the thirteen weeks ended November 1, 2014. The out-of-period correction of errors results in a decrease to income before taxes of $3.3 million, or $2.0 million after tax, and an unrelated tax charge of $0.4 million, for a combined reduction to net income of $2.4 million for the thirty-nine weeks ended November 1, 2014. | |||||||||||||||
(5) | The fourth quarter of Fiscal 2014 included pre-tax charges of $28.3 million for asset impairment, $5.2 million related to certain corporate governance matters and CEO transition costs, $3.4 million related to lease terminations and store closures, $2.4 million related to the restructuring of the Gilly Hicks brand and $0.7 million related to the Company's profit improvement initiative. Net income per diluted share included $0.52 related to the charges. The thirteen and fifty-two weeks ended January 31, 2015 included the correction of certain errors relating to prior periods. The out-of-period correction of errors resulted in a decrease to income before taxes and net income of $0.1 million for the thirteen weeks ended January 31, 2015. The out-of-period correction of errors resulted in a decrease in income before taxes of $2.9 million, or $1.8 million after tax, and an unrelated tax charge of $0.4 million, for a combined reduction to net income of $2.2 million for the fifty-two weeks ended January 31, 2015. | |||||||||||||||
(6) | The thirteen weeks ended May 4, 2013 included a reduction of pre-tax loss of $2.5 million and an unrelated tax charge of $1.2 million for the correction of errors relating to prior periods. The effect of these corrections decreased net loss by $0.6 million for the thirteen week period ended May 4, 2013. | |||||||||||||||
(7) | The second quarter of Fiscal 2013 included pre-tax charges of $2.6 million related to the Company's profit improvement initiative. Earnings per diluted share included $0.02 related to the charges. The thirteen week period ended August 3, 2013 included a reduction of pre-tax expense of $4.5 million for the correction of errors related to prior periods; the twenty-six week period ended August 3, 2013 included a reduction of pre-tax expense of $5.5 million and an unrelated tax charges of $1.2 million for the correction of errors related to prior periods. The effect of these corrections increased net income by $2.9 million and $2.5 million for the thirteen and twenty-six week periods ended August 3, 2013, respectively. | |||||||||||||||
(8) | The third quarter of Fiscal 2013 included pre-tax charges of $43.6 million for asset impairment, $44.7 million related to the restructuring of the Gilly Hicks brand and $7.6 million related to the Company's profit improvement initiative. Earnings per diluted share included $0.72 related to the charges. The thirteen week period ended November 2, 2013 included a reduction of pre-tax expense of $2.1 million and an unrelated tax benefit of $1.9 million for the correction of errors related to prior periods; the thirty-nine week period ended November 2, 2013 included a reduction of pre-tax expense of $6.3 million for the correction of errors related to prior periods. The effect of these corrections increased net income by $3.0 million and $4.7 million for the thirteen and thirty-nine week periods ended November 2, 2013, respectively. | |||||||||||||||
(9) | The fourth quarter of Fiscal 2014 included pre-tax charges of $3.1 million for asset impairment, $36.8 million related to the restructuring of the Gilly Hicks brand and $3.7 million related to the Company's profit improvement initiative. Earnings per diluted share included $0.38 related to the charges and $0.11 for a tax true-up related to the restructuring, asset impairment and profit improvement charges primarily incurred in the third quarter of Fiscal 2013, for the true-up of the estimated full year tax rate applied as of the third quarter to the full year Fiscal 2013 tax rate. The thirteen week period ended February 1, 2014 included an increase in pre-tax expense of $6.5 million and an unrelated tax charge of $2.2 million for the correction of errors related to prior periods. The effect of these corrections decrease net income by $6.2 million for the thirteen week period ended February 1, 2014; the fifty-two week period ended February 1, 2014 included a reduction of pre-tax expense of $2.6 million and an unrelated tax expense of $0.9 million. | |||||||||||||||
(10) | The Company does not believe these corrections were material to any current or prior interim or annual periods that were affected. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||
Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Aug. 02, 2014 | Aug. 03, 2013 | Nov. 01, 2014 | Nov. 02, 2013 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||||
Quantifying Prior Year Misstatements Corrected in Current Year Financial Statements [Abstract] | ||||||||||||||||||
Increase (decrease) in pre-tax income related to correction of errors | ($100,000) | ($600,000) | ($1,400,000) | ($1,500,000) | ($6,500,000) | $2,100,000 | $4,500,000 | $2,500,000 | ($2,900,000) | $5,500,000 | ($3,300,000) | $6,300,000 | ($2,900,000) | $2,600,000 | ||||
Increase (decrease) in after tax income related to correction of errors | -100,000 | -400,000 | -900,000 | -900,000 | -1,700,000 | -2,000,000 | -1,800,000 | 800,000 | ||||||||||
Unrelated tax charge correction | -400,000 | -2,200,000 | 1,900,000 | -1,200,000 | -1,200,000 | -400,000 | -400,000 | -900,000 | ||||||||||
Increase (decrease) in net income related to correction of errors | 100,000 | 800,000 | 900,000 | 900,000 | 6,200,000 | -3,000,000 | -2,900,000 | -600,000 | 1,700,000 | -2,500,000 | 2,400,000 | -4,700,000 | 2,200,000 | -100,000 | ||||
Increase (decrease) in net cash provided by operating activities related to correction of errors | -11,800,000 | |||||||||||||||||
Cash and Equivalents: | ||||||||||||||||||
Maturity Period Of Cash Equivalents | 3 months | |||||||||||||||||
Restricted Cash: | ||||||||||||||||||
Restricted cash | 14,835,000 | 26,686,000 | 14,835,000 | 26,686,000 | ||||||||||||||
Inventories: | ||||||||||||||||||
Lower of cost or market adjustment to inventory | 12,700,000 | 22,100,000 | 12,700,000 | 22,100,000 | ||||||||||||||
Inventory shrink reserve | 11,400,000 | 13,600,000 | 11,400,000 | 13,600,000 | ||||||||||||||
Inventory, net | 460,794,000 | 530,192,000 | 460,794,000 | 530,192,000 | ||||||||||||||
Inventory in transit | 56,100,000 | 76,400,000 | 56,100,000 | 76,400,000 | ||||||||||||||
Foreign Currency Translation and Transactions: | ||||||||||||||||||
Foreign currency transaction gain (loss), before tax | -2,000,000 | 2,900,000 | 3,300,000 | |||||||||||||||
Revenue Recognition: | ||||||||||||||||||
Estimated reserve for sales returns | 9,500,000 | 8,000,000 | 9,300,000 | |||||||||||||||
Gift card liability | 36,936,000 | 42,512,000 | 36,936,000 | 42,512,000 | ||||||||||||||
Operating income for gift card breakage | 5,800,000 | 8,800,000 | 6,900,000 | |||||||||||||||
Stores and Distribution Expense: | ||||||||||||||||||
Handling costs | 52,200,000 | 53,900,000 | 59,400,000 | |||||||||||||||
Other Operating Income, Net: | ||||||||||||||||||
Insurance Recoveries | 10,200,000 | 9,000,000 | 4,800,000 | |||||||||||||||
Auction Rate Securities Gain (Loss) | 0 | 0 | 2,454,000 | |||||||||||||||
Advertising Costs | ||||||||||||||||||
Advertising expense | 84,600,000 | 68,100,000 | 59,000,000 | |||||||||||||||
Leases: | ||||||||||||||||||
Fixed minimum(1) | 432,794,000 | [1] | 464,937,000 | [1] | 414,061,000 | [1] | ||||||||||||
Contingent | 8,886,000 | 8,624,000 | 16,828,000 | |||||||||||||||
Deferred lease credits amortization | -38,437,000 | -45,899,000 | -45,926,000 | |||||||||||||||
Total store rent expense | 403,243,000 | 427,662,000 | 384,963,000 | |||||||||||||||
Buildings, equipment and other | 4,619,000 | 4,987,000 | 6,259,000 | |||||||||||||||
Total rent expense | 407,862,000 | 432,649,000 | 391,222,000 | |||||||||||||||
Lease Termination Fees | 12,400,000 | 39,200,000 | 3,400,000 | |||||||||||||||
Leasehold Financing Obligations | 50,521,000 | 60,726,000 | 50,521,000 | 60,726,000 | ||||||||||||||
Financing Interest Expense | 6,200,000 | 6,600,000 | 6,800,000 | |||||||||||||||
Operating Lease Commitments Under Non-Cancelable Leases: | ||||||||||||||||||
Fiscal 2015 | 409,046,000 | 409,046,000 | ||||||||||||||||
Fiscal 2016 | 366,909,000 | 366,909,000 | ||||||||||||||||
Fiscal 2017 | 279,960,000 | 279,960,000 | ||||||||||||||||
Fiscal 2018 | 210,674,000 | 210,674,000 | ||||||||||||||||
Fiscal 2019 | 165,307,000 | 165,307,000 | ||||||||||||||||
Thereafter | 525,286,000 | 525,286,000 | ||||||||||||||||
Weighted Average Shares Outstanding: | ||||||||||||||||||
Shares of Common Stock issued (in shares) | 103,300,000 | 103,300,000 | 103,300,000 | |||||||||||||||
Treasury shares (in shares) | -31,515,000 | -26,143,000 | -21,360,000 | |||||||||||||||
Weighted-Average - basic shares (in shares) | 71,785,000 | 77,157,000 | 81,940,000 | |||||||||||||||
Dilutive effect of share-based compensation awards (in shares) | 1,152,000 | 1,509,000 | 1,235,000 | |||||||||||||||
Weighted-Average - diluted shares (in shares) | 72,937,000 | 78,666,000 | 83,175,000 | |||||||||||||||
Anti-Dilutive shares (in shares) | 6,144,000 | [2] | 4,630,000 | [2] | 5,228,000 | [2] | ||||||||||||
Direct-to-Consumer Operations [Member] | ||||||||||||||||||
Stores and Distribution Expense: | ||||||||||||||||||
Shipping and handling costs | 108,100,000 | 93,400,000 | 78,600,000 | |||||||||||||||
Common Class A | ||||||||||||||||||
Stockholders' Equity: | ||||||||||||||||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | 150,000,000 | 150,000,000 | ||||||||||||||
Common stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 | $0.01 | ||||||||||||||
Common stock, shares outstanding | 69,400,000 | 76,400,000 | 69,400,000 | 76,400,000 | ||||||||||||||
Common stock, voting rights per share | 1 | 1 | ||||||||||||||||
Common Class B [Member] | ||||||||||||||||||
Stockholders' Equity: | ||||||||||||||||||
Common stock, shares authorized | 106,400,000 | 106,400,000 | 106,400,000 | 106,400,000 | ||||||||||||||
Common stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 | $0.01 | ||||||||||||||
Common stock, shares outstanding | 0 | 0 | 0 | 0 | ||||||||||||||
Common stock, voting rights per share | 3 | 3 | ||||||||||||||||
Minimum [Member] | ||||||||||||||||||
Leases: | ||||||||||||||||||
Committed Non-cancelable Leases with Remaining Terms, Number of Years | 1 year | |||||||||||||||||
Maximum [Member] | ||||||||||||||||||
Leases: | ||||||||||||||||||
Committed Non-cancelable Leases with Remaining Terms, Number of Years | 16 years | |||||||||||||||||
Building [Member] | ||||||||||||||||||
Property, Plant and Equipment: | ||||||||||||||||||
Useful life | 30 years | |||||||||||||||||
Leasehold Improvements and Furniture and Fixtures [Member] | Minimum [Member] | ||||||||||||||||||
Property, Plant and Equipment: | ||||||||||||||||||
Useful life | 3 years | |||||||||||||||||
Leasehold Improvements and Furniture and Fixtures [Member] | Maximum [Member] | ||||||||||||||||||
Property, Plant and Equipment: | ||||||||||||||||||
Useful life | 15 years | |||||||||||||||||
Information Technology [Member] | Minimum [Member] | ||||||||||||||||||
Property, Plant and Equipment: | ||||||||||||||||||
Useful life | 3 years | |||||||||||||||||
Information Technology [Member] | Maximum [Member] | ||||||||||||||||||
Property, Plant and Equipment: | ||||||||||||||||||
Useful life | 7 years | |||||||||||||||||
Furniture and Fixtures [Member] | Minimum [Member] | ||||||||||||||||||
Property, Plant and Equipment: | ||||||||||||||||||
Useful life | 3 years | |||||||||||||||||
Furniture and Fixtures [Member] | Maximum [Member] | ||||||||||||||||||
Property, Plant and Equipment: | ||||||||||||||||||
Useful life | 15 years | |||||||||||||||||
Other Property and Equipment [Member] | Minimum [Member] | ||||||||||||||||||
Property, Plant and Equipment: | ||||||||||||||||||
Useful life | 3 years | |||||||||||||||||
Other Property and Equipment [Member] | Maximum [Member] | ||||||||||||||||||
Property, Plant and Equipment: | ||||||||||||||||||
Useful life | 20 years | |||||||||||||||||
Internal-use Software [Member] | Maximum [Member] | ||||||||||||||||||
Property, Plant and Equipment: | ||||||||||||||||||
Useful life | 7 years | |||||||||||||||||
Gilly Hicks [Member] | Facility Closing [Member] | ||||||||||||||||||
Leases: | ||||||||||||||||||
Lease Termination Fees | $6,800,000 | $39,100,000 | ||||||||||||||||
[1] | Includes lease termination fees of $12.4 million, $39.2 million and $3.4 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. For Fiscal 2014 and Fiscal 2013, lease termination fees of $6.8 million and $39.1 million, respectively, related to the Gilly Hicks restructuring. | |||||||||||||||||
[2] | Reflects the number of shares subject to outstanding share-based compensation awards but excluded from the computation of net income per diluted share because the impact would be anti-dilutive. |
Share_Based_Compensation_Textu
Share Based Compensation (Textual) (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
share_based_compensation_plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $23,027,000 | $53,516,000 | $52,922,000 |
Tax benefits related to share-based compensation | 8,600,000 | 20,300,000 | 20,100,000 |
Effects of adjustments for forfeitures | 2,600,000 | 2,300,000 | 1,300,000 |
Number of primary share based compensation plans | 2 | ||
Number of other share based compensation plans | 4 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term of award | 10 years | ||
Total intrinsic value of award exercised | 2,000,000 | ||
Grant date fair value of stock options vested during period | 1,300,000 | ||
Employee Stock Option [Member] | Associate [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term of award | 10 years | ||
Total intrinsic value of award exercised | 1,500,000 | 8,500,000 | 900,000 |
Grant date fair value of award other than options vested during period | 7,400,000 | 83,700,000 | 24,100,000 |
Total unrecognized compensation cost, net of estimated forfeitures | 8,000,000 | ||
Unrecognized compensation cost, weighted-average period of recognition | 16 months | ||
Service-based Restricted Stock Unit (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value of award other than options vested during period | 17,078,000 | 14,535,000 | 19,532,000 |
Total unrecognized compensation cost, net of estimated forfeitures | 33,600,000 | ||
Unrecognized compensation cost, weighted-average period of recognition | 16 months | ||
Total fair value of restricted stocks | 33,075,000 | 23,192,000 | 29,297,000 |
Performance-based Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value of award other than options vested during period | 515,000 | 515,000 | 0 |
Total unrecognized compensation cost, net of estimated forfeitures | 800,000 | ||
Unrecognized compensation cost, weighted-average period of recognition | 7 months | ||
Total fair value of restricted stocks | 4,709,000 | 10,814,000 | 773,000 |
Market-based Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value of award other than options vested during period | 0 | 0 | 0 |
Total unrecognized compensation cost, net of estimated forfeitures | 1,000,000 | ||
Unrecognized compensation cost, weighted-average period of recognition | 14 months | ||
Total fair value of restricted stocks | $3,756,000 | $0 | $0 |
2005 LTIP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares approved for grant | 250,000 | ||
2005 LTIP [Member] | Non Associate Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
2007 LTIP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares approved for grant | 2,000,000 |
Share_Based_Compensation_Stock
Share Based Compensation (Stock Option Activity) (Details) (USD $) | 12 Months Ended |
Jan. 31, 2015 | |
Number of Underlying Shares Outstanding [Roll Forward] | |
Number of Underlying Shares, Outstanding, Beginning Balance (in shares) | 532,400 |
Number of Underlying Shares, Exercised (in shares) | -7,500 |
Number of Underlying Shares, Forfeited or expired (in shares) | -196,800 |
Number of Underlying Shares, Outstanding, Ending Balance (in shares) | 328,100 |
Weighted Average Exercise Price [Roll Forward] | |
Weighted-Average Exercise Price, Outstanding, Beginning Balance (in dollars per share) | $65.37 |
Weighted-Average Exercise Price, Exercised (in dollars per share) | $33.74 |
Weighted-Average Exercise Price, Forfeited or expired (in dollars per share) | $67.79 |
Weighted-Average Exercise Price, Outstanding, Ending Balance (in dollars per share) | $64.64 |
Number of Shares Outstanding, Aggregate Intrinsic Value | $310,100 |
Weighted- Average Remaining Contractual Life, Outstanding | 2 years 7 months |
Number of Underlying Shares, Stock options exercisable (in shares) | 328,100 |
Weighted-Average Exercise Price, Stock options exercisable (in dollars per share) | $64.64 |
Aggregate Intrinsic Value, Stock options exercisable | $310,100 |
Weighted-Average Remaining Contractual Life, Stock options exercisable | 2 years 7 months |
Share_Based_Compensation_SARs_
Share Based Compensation (SARs Assumptions) (Details) (Stock Appreciation Rights (SARs) [Member], USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
The weighted-average fair value and assumptions (stock appreciation rights) | |||
Fair value (in dollars per share) | $36.31 | ||
Other Executive Officers [Member] | |||
The weighted-average fair value and assumptions (stock appreciation rights) | |||
Grant date market price (in dollars per share) | $35.08 | $46.57 | $52.89 |
Exercise price (in dollars per share) | $35.49 | $46.57 | $52.89 |
Fair value (in dollars per share) | $12.85 | $20.34 | $23.53 |
Assumptions: | |||
Price volatility | 49.00% | 61.00% | 56.00% |
Expected term (years) | 4 years 11 months | 4 years 8 months | 5 years |
Risk-free interest rate | 1.60% | 0.70% | 1.30% |
Dividend yield | 2.00% | 1.80% | 1.10% |
All Other Associates [Member] | |||
The weighted-average fair value and assumptions (stock appreciation rights) | |||
Grant date market price (in dollars per share) | $37.05 | $43.86 | $51.31 |
Exercise price (in dollars per share) | $37.22 | $43.86 | $51.31 |
Fair value (in dollars per share) | $12.92 | $16.17 | $21.90 |
Assumptions: | |||
Price volatility | 50.00% | 53.00% | 61.00% |
Expected term (years) | 4 years 1 month | 4 years 1 month | 4 years 1 month |
Risk-free interest rate | 1.40% | 0.70% | 0.90% |
Dividend yield | 1.90% | 1.80% | 1.20% |
Recovered_Sheet1
Share Based Compensation (SARS Activity) (Details) (Stock Appreciation Rights (SARs) [Member], USD $) | 12 Months Ended | |
Jan. 31, 2015 | Feb. 01, 2014 | |
Stock Appreciation Rights (SARs) [Member] | ||
Number of Underlying Shares Outstanding [Roll Forward] | ||
Number of Underlying Shares, Outstanding (in shares) | 8,953,675 | 8,982,959 |
Number of Underlying Shares, Granted (in shares) | 512,216 | |
Number of Underlying Shares, Exercised (in shares) | -92,475 | |
Number of Underlying Shares, Forfeited or expired (in shares) | -449,025 | |
Weighted-Average Exercise Price [Roll Forward] | ||
Weighted-Average Exercise Price, Outstanding (in dollars per share) | $40.28 | $40.76 |
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $36.31 | |
Weighted-Average Exercise Price, Exercised (in dollars per share) | $26.92 | |
Weighted-Average Exercise Price, Forfeited or exercised (in dollars per share) | $48.03 | |
Aggregate Intrinsic Value, Outstanding | $5,099,000 | |
Weighted-Average Remaining Contractual Life, Outstanding | 2 years 7 months | |
Number of Underlying Shares, Stock appreciation rights exercisable (in shares) | 8,152,634 | |
Weighted-Average Exercise Price, Stock appreciation rights exercisable (in dollars per share) | $40.17 | |
Aggregate Intrinsic Value, Stock appreciation rights exercisable | 5,099,000 | |
Weighted- Average Remaining Contractual Life, Stock appreciation rights exercisable | 2 years | |
Number of Underlying Shares, Stock appreciation rights expected to become exercisable (in shares) | 739,920 | |
Weighted-Average Exercise Price, Stock appreciation rights expected to become exercisable (in dollars per share) | $41.69 | |
Aggregate Intrinsic Value, Stock appreciation rights expected to become exercisable | $0 | |
Weighted-Average Remaining Contractual Life, Stock appreciation rights expected to become exercisable | 8 years 7 months |
Share_Based_Compensation_Restr
Share Based Compensation (Restricted Stock Unit Activity) (Details) (USD $) | 12 Months Ended | |
Jan. 31, 2015 | Feb. 01, 2014 | |
Market-based Restricted Stock Units (RSUs) [Member] | ||
Number of Underlying Shares Outstanding [Roll Forward] | ||
Number of Underlying Shares, Outstanding, Ending Balance (in shares) | 36,374 | 0 |
Number of Underlying Shares, Granted (in shares) | 88,500 | |
Number of Underlying Shares, Change due to performance criteria achievement (in shares) | 0 | |
Number of Underlying Shares, Vested (in shares) | 0 | |
Number of Underlying Shares, Forfeited (in shares) | -52,126 | |
Weighted-Average Grant Date Fair Value [Roll Forward] | ||
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $42.44 | |
Weighted-Average Grant Date Fair Value, Change due to performance achievement criteria (in dollars per share) | $0 | |
Weighted-Average Grant Date Fair Value, Vested (in dollars per share) | $0 | |
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share) | $44.05 | |
Weighted-Average Grant Date Fair Value, Unvested, Outstanding (in dollars per share) | $40.13 | $0 |
Service-based Restricted Stock Unit (RSUs) [Member] | ||
Number of Underlying Shares Outstanding [Roll Forward] | ||
Number of Underlying Shares, Outstanding, Ending Balance (in shares) | 1,566,272 | 1,162,825 |
Number of Underlying Shares, Granted (in shares) | 1,019,363 | |
Number of Underlying Shares, Vested (in shares) | -355,796 | |
Number of Underlying Shares, Forfeited (in shares) | -260,120 | |
Weighted-Average Grant Date Fair Value [Roll Forward] | ||
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $32.45 | |
Weighted-Average Grant Date Fair Value, Vested (in dollars per share) | $48 | |
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share) | $44.59 | |
Weighted-Average Grant Date Fair Value, Unvested, Outstanding (in dollars per share) | $37.81 | $47.15 |
Performance-based Restricted Stock Units (RSUs) [Member] | ||
Number of Underlying Shares Outstanding [Roll Forward] | ||
Number of Underlying Shares, Outstanding, Ending Balance (in shares) | 205,420 | 263,754 |
Number of Underlying Shares, Granted (in shares) | 177,006 | |
Number of Underlying Shares, Change due to performance criteria achievement (in shares) | -98,483 | |
Number of Underlying Shares, Vested (in shares) | -10,002 | |
Number of Underlying Shares, Forfeited (in shares) | -126,855 | |
Weighted-Average Grant Date Fair Value [Roll Forward] | ||
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $26.61 | |
Weighted-Average Grant Date Fair Value, Change due to performance achievement criteria (in dollars per share) | $44.51 | |
Weighted-Average Grant Date Fair Value, Vested (in dollars per share) | $51.50 | |
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share) | $31.71 | |
Weighted-Average Grant Date Fair Value, Unvested, Outstanding (in dollars per share) | $32.05 | $40.93 |
Minimum [Member] | Market-based Restricted Stock Units (RSUs) [Member] | ||
Weighted-Average Grant Date Fair Value [Roll Forward] | ||
Target percentage of equity awards earned | 0.00% | |
Minimum [Member] | Performance-based Restricted Stock Units (RSUs) [Member] | ||
Weighted-Average Grant Date Fair Value [Roll Forward] | ||
Target percentage of equity awards earned | 0.00% | |
Maximum [Member] | Market-based Restricted Stock Units (RSUs) [Member] | ||
Weighted-Average Grant Date Fair Value [Roll Forward] | ||
Target percentage of equity awards earned | 200.00% | |
Maximum [Member] | Performance-based Restricted Stock Units (RSUs) [Member] | ||
Weighted-Average Grant Date Fair Value [Roll Forward] | ||
Target percentage of equity awards earned | 200.00% | |
Market Vesting Conditions [Member] | Market-based Restricted Stock Units (RSUs) [Member] | ||
Weighted-Average Grant Date Fair Value [Roll Forward] | ||
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $40.42 |
Share_Based_Compensation_RSUs_
Share Based Compensation (RSUs Assumptions) (Details) (Market-based Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended |
Jan. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value (in dollars per share) | $42.44 |
Market Vesting Conditions [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date market price (in dollars per share) | $36.20 |
Fair value (in dollars per share) | $40.42 |
Price volatility | 49.00% |
Expected term (years) | 2 years 8 months |
Risk-free interest rate | 0.80% |
Dividend yield | 2.20% |
Average volatility of peer companies | 36.00% |
Average correlation coefficient of peer companies | 0.3704 |
Rabbi_Trust_Assets_Schedule_of
Rabbi Trust Assets (Schedule of Investments) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Rabbi Trust assets: | ||
Rabbi Trust assets | $93,448 | $90,222 |
Money market funds [Member] | ||
Rabbi Trust assets: | ||
Rabbi Trust assets | 24 | 24 |
Trust-owned life insurance policies (at cash surrender value) [Member] | ||
Rabbi Trust assets: | ||
Rabbi Trust assets | $93,424 | $90,198 |
Rabbi_Trust_Assets_Textual_Det
Rabbi Trust Assets (Textual) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Investments, Debt and Equity Securities [Abstract] | |||
Realized gains resulting from change in cash surrender value of insurance policies | $3.20 | $2.60 | $2.40 |
Fair_Value_Schedule_of_Assets_
Fair Value (Schedule of Assets and Liabilities by Fair Value by Hierarchy) (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS: | ||
Money market funds | $122,047 | $148,024 |
Derivative financial instruments | 10,293 | 969 |
Total assets measured at fair value | 132,340 | 148,993 |
LIABILITIES: | ||
Derivative financial instruments | 0 | 2,555 |
Total liabilities measured at fair value | 0 | 2,555 |
Level 1 [Member] | ||
ASSETS: | ||
Money market funds | 122,047 | 148,024 |
Derivative financial instruments | 0 | 0 |
Total assets measured at fair value | 122,047 | 148,024 |
LIABILITIES: | ||
Derivative financial instruments | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 2 [Member] | ||
ASSETS: | ||
Money market funds | 0 | 0 |
Derivative financial instruments | 10,293 | 969 |
Total assets measured at fair value | 10,293 | 969 |
LIABILITIES: | ||
Derivative financial instruments | 0 | 2,555 |
Total liabilities measured at fair value | 0 | 2,555 |
Level 3 [Member] | ||
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 |
Fair_Value_Textual_Details
Fair Value (Textual) (Details) (USD $) | Jan. 31, 2015 | Aug. 07, 2014 | Feb. 01, 2014 |
In Millions, unless otherwise specified | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying amount of borrowings | $299.30 | ||
Fair value of Company's credit facility | 295.1 | ||
Amended and Restated Credit Agreement [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Credit facility, amount outstanding | 0 | 60 | 0 |
Term Loan Agreement [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Credit facility, amount outstanding | $127.50 | $135 |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Property and equipment, net | |||
Land | $37,473 | $37,453 | |
Buildings | 286,820 | 296,382 | |
Furniture, fixtures and equipment | 653,929 | 689,815 | |
Information technology | 427,879 | 369,257 | |
Leasehold improvements | 1,338,206 | 1,414,939 | |
Construction in progress | 49,836 | 33,791 | |
Other | 3,107 | 44,075 | |
Total | 2,797,250 | 2,885,712 | |
Less: Accumulated depreciation and amortization | -1,830,249 | -1,754,371 | |
Property and equipment, net | 967,001 | 1,131,341 | |
Property and Equipment, Net (Textuals) [Abstract] | |||
Asset Impairment | 44,988 | 46,715 | 7,407 |
Construction Project Assets [Member] | |||
Property and equipment, net | |||
Total | 40,100 | 52,300 | |
Abercrombie & Fitch [Member] | |||
Property and Equipment, Net (Textuals) [Abstract] | |||
Store-related asset impairment charges, number of stores | 2 | 23 | 1 |
Abercrombie Kids [Member] | |||
Property and Equipment, Net (Textuals) [Abstract] | |||
Store-related asset impairment charges, number of stores | 9 | 4 | 3 |
Hollister [Member] | |||
Property and Equipment, Net (Textuals) [Abstract] | |||
Store-related asset impairment charges, number of stores | 9 | 70 | 12 |
Corporate Aircraft [Member] | |||
Property and Equipment, Net (Textuals) [Abstract] | |||
Asset Impairment | 11,300 | ||
Gilly Hicks [Member] | |||
Property and Equipment, Net (Textuals) [Abstract] | |||
Asset Impairment | $37,900 | ||
Store-related asset impairment charges, number of stores | 1 |
Other_Assets_Details
Other Assets (Details) (USD $) | 12 Months Ended | |
Jan. 31, 2015 | Feb. 01, 2014 | |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Non-current deferred tax assets | 96,999,000 | $97,587,000 |
Rabbi Trust | 93,448,000 | 90,222,000 |
Long term deposits | 64,415,000 | 68,886,000 |
Long-term supplies | 31,565,000 | 36,008,000 |
Intellectual property | 27,943,000 | 30,987,000 |
Restricted cash | 14,835,000 | 26,686,000 |
Prepaid income tax on intercompany items | 9,968,000 | 12,421,000 |
Other | 34,021,000 | 36,293,000 |
Other assets | 373,194,000 | 399,090,000 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net | 15,300,000 | 16,300,000 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 12,600,000 | $14,700,000 |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years |
Deferred_Lease_Credits_Details
Deferred Lease Credits (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Amortized amounts over the life of related leases | ||
Deferred lease credits | $490,452 | $543,040 |
Amortized deferred lease credits | -357,430 | -366,076 |
Total deferred lease credits, net | 133,022 | 176,964 |
Less: short-term portion of deferred lease credits | -26,629 | -36,165 |
Long-term portion of deferred lease credits | $106,393 | $140,799 |
Accrued_Expenses_Details
Accrued Expenses (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued payroll and related costs | $56,384 | $49,878 |
Gift card liability | 36,936 | 42,512 |
Accrued taxes | 34,629 | 44,100 |
Construction in progress | 30,661 | 23,634 |
Accrued rent | 25,607 | 59,997 |
Other | 98,519 | 102,713 |
Accrued expenses | $282,736 | $322,834 |
Other_Liabilities_Details
Other Liabilities (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ||
Accrued straight-line rent | $99,108 | $114,001 |
Deferred compensation | 56,244 | 87,385 |
Uncertain tax positions, including interest and penalties | 4,572 | 5,777 |
Other | 21,362 | 24,594 |
Other liabilities | $181,286 | $231,757 |
Income_Taxes_Textual_Details
Income Taxes (Textual) (Details) (USD $) | 12 Months Ended | |||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | |
Income Tax Disclosure [Abstract] | ||||
Income taxes paid | $74,700,000 | $116,300,000 | $122,500,000 | |
Deferred Tax Liabilities Accumulated Other Comprehensive Income | 1,600,000 | |||
Deferred tax assets, accumulated other comprehensive income | 300,000 | |||
Net operating foreign subsidiaries, valuation allowance | 6,100,000 | |||
Unremitted earnings of subsidiaries operating outside of the U.S. | 75,500,000 | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Uncertain tax positions | 3,212,000 | 4,182,000 | 11,116,000 | 13,404,000 |
Tax benefit related to net interest and penalties recognized | 200,000 | 1,300,000 | ||
Interest and penalties accrued | 1,400,000 | 1,600,000 | ||
State and foreign returns subject to examination, minimum (in years) | 3 years | |||
State and foreign returns subject to examination, maximum (in years) | 5 years | |||
Change in uncertain tax positions is reasonably possible, estimated range of change, lower bound | 1,500,000 | |||
Change in uncertain tax positions is reasonably possible, estimated range of change, upper bound | $2,500,000 |
Income_Taxes_Earnings_from_Con
Income Taxes (Earnings from Continuing Operations before taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Income Tax Disclosure [Abstract] | |||
Domestic | $100,115 | $37,325 | $302,589 |
Foreign | -961 | 35,952 | 64,356 |
INCOME BEFORE TAXES | $99,154 | $73,277 | $366,945 |
Income_Taxes_Provisions_for_In
Income Taxes (Provisions for Income Taxes from Continuing Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Current: | |||
Federal | $21,287 | $52,579 | $111,761 |
State | 1,944 | -4,988 | 15,323 |
Foreign | 28,614 | 17,851 | 17,984 |
Total current income tax | 51,845 | 65,442 | 145,068 |
Deferred: | |||
Federal | 8,971 | -36,732 | -10,456 |
State | 1,783 | -4,606 | 458 |
Foreign | -15,266 | -5,455 | -5,136 |
Total deferred income tax | -4,512 | -46,793 | -15,134 |
Total provision | $47,333 | $18,649 | $129,934 |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Federal Income Tax Rate) (Details) | 12 Months Ended | |||||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||||
Income Tax Disclosure [Abstract] | ||||||
U.S. Federal income tax rate | 35.00% | 35.00% | 35.00% | |||
State income tax, net of U.S. federal income tax effect | 4.30% | -4.10% | 2.70% | |||
Taxation of non-U.S. operations | 5.40% | [1] | 2.00% | [1] | -1.40% | [1] |
Net change in valuation allowances | 6.60% | 0.10% | -0.20% | |||
Audit and other adjustments to prior years' accruals, net | -1.30% | -5.60% | 0.00% | |||
Other items (including permanent items and credits), net | -2.30% | -1.90% | -0.70% | |||
Total | 47.70% | 25.50% | 35.40% | |||
[1] | The jurisdictional location of earnings/losses is a significant component of our effective tax rate each year as tax rates outside the U.S. are generally lower than the U.S. statutory income tax rate, and the rate impact of this component is influenced by the specific location of non-U.S. earnings/losses and the level of such earnings as compared to our total earnings. |
Income_Taxes_Deferred_Income_T
Income Taxes (Deferred Income Tax Assets (Liabilities)) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Deferred compensation | $83,157 | $91,585 |
Accrued expenses and reserves | 17,695 | 22,403 |
Rent | 38,881 | 49,170 |
Net operating losses (NOL) and credit carryforwards | 14,897 | 12,611 |
Other | 1,403 | 307 |
Valuation allowances | -6,730 | -202 |
Total deferred tax assets | 149,303 | 175,874 |
Deferred tax liabilities: | ||
Property, equipment and intangibles | -16,059 | -36,266 |
Inventory | -11,332 | -8,487 |
Store supplies | -7,046 | -7,798 |
Prepaid expenses | -2,438 | -2,116 |
Other | -1,424 | -3,754 |
Total deferred tax liabilities | -38,299 | -58,421 |
Net deferred income tax assets | $111,004 | $117,453 |
Income_Taxes_Roll_Forward_of_U
Income Taxes (Roll Forward of Uncertain Tax Positions) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Uncertain tax positions, beginning of the year | $4,182 | $11,116 | $13,404 |
Gross addition for tax positions of the current year | 152 | 449 | 1,084 |
Gross addition for tax positions of prior years | 33 | 30 | 227 |
Reductions of tax positions of prior years for: | |||
Lapses of applicable statutes of limitations | -348 | -2,880 | -2,053 |
Settlements during the period | -4 | -3,936 | -1,480 |
Changes in judgment | -803 | -597 | -66 |
Uncertain tax positions end of year | $3,212 | $4,182 | $11,116 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets, Net operating losses (NOL) and credit carryforwards) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Tax Credit Carryforward [Line Items] | ||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards | $14,897 | $12,611 |
Foreign Tax Authority [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards | 12,700 | |
State and Local Jurisdiction [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards | 200 | |
State Credit Carryover [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards | $2,000 |
Borrowings_Details
Borrowings (Details) (USD $) | 12 Months Ended | |||
Jan. 31, 2015 | Aug. 07, 2014 | Feb. 01, 2014 | Aug. 02, 2014 | |
Long-Term Borrowings [Line Items] | ||||
Deferred financing fees | $5,800,000 | |||
Unamortized fees paid to lenders | -3,200,000 | |||
Short-term portion of borrowings, net of discount and fees | -2,102,000 | -15,000,000 | ||
Long-term portion of borrowings, net | 291,310,000 | 120,000,000 | ||
Schedule of Future Payments of the Term Loan Facility | ||||
Fiscal 2015 | 3,000,000 | |||
Fiscal 2016 | 3,000,000 | |||
Fiscal 2017 | 3,000,000 | |||
Fiscal 2018 | 3,000,000 | |||
Fiscal 2019 | 3,000,000 | |||
Thereafter | 284,250,000 | |||
London Interbank Offered Rate (LIBOR) Minimum ABL Facility [Domain] | ||||
Long-Term Borrowings [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
London Interbank Offered Rate (LIBOR) Maximum ABL Facility [Domain] | ||||
Long-Term Borrowings [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Base Rate Minimum ABL Facility [Domain] | ||||
Long-Term Borrowings [Line Items] | ||||
Basis spread on variable rate | 0.25% | |||
Base Rate Maximum ABL Facility [Domain] | ||||
Long-Term Borrowings [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
London Interbank Offered Rate (LIBOR) Initial Applicable Margin ABL Facility [Domain] | ||||
Long-Term Borrowings [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
Base Rate Initial Applicable Margin ABL Facility [Domain] | ||||
Long-Term Borrowings [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
London Interbank Offered Rate (LIBOR) Term Loan Facility [Domain] | ||||
Long-Term Borrowings [Line Items] | ||||
Basis spread on variable rate | 3.75% | |||
Term Loan Facility, interest rate floor | 1.00% | |||
Base Rate Term Loan Facility [Domain] | ||||
Long-Term Borrowings [Line Items] | ||||
Basis spread on variable rate | 2.75% | |||
Term Loan Facility [Member] [Domain] | ||||
Long-Term Borrowings [Line Items] | ||||
Maximum borrowing capacity | 300,000,000 | |||
Maturity date | 7-Aug-21 | |||
Term Loan Facility, quarterly repayments as percent of original principal | 0.25% | |||
Interest rate on borrowings | 4.75% | |||
Fair Value Inputs, Discount Rate | 1.00% | |||
Borrowings, gross at carrying amount | 299,250,000 | |||
Unamortized discount | -2,786,000 | |||
Unamortized fees paid to lenders | -3,052,000 | |||
Borrowings, net | 293,412,000 | |||
ABL Facility [Member] [Domain] | ||||
Long-Term Borrowings [Line Items] | ||||
Maximum borrowing capacity | 400,000,000 | |||
Maturity date | 7-Aug-19 | |||
ABL Facility, unused capacity, commitment fee percentage | 0.25% | |||
ABL Facility, covenant terms, minimum percentage of loan cap amount | 10.00% | |||
ABL Facility, covenant terms, minimum remaining borrowing capacity | 30,000,000 | |||
Term Loan Agreement [Member] | ||||
Long-Term Borrowings [Line Items] | ||||
Maximum borrowing capacity | 150,000,000 | |||
Credit facility, amount outstanding | 127,500,000 | 135,000,000 | ||
Amended and Restated Credit Agreement [Member] | ||||
Long-Term Borrowings [Line Items] | ||||
Maximum borrowing capacity | 350,000,000 | |||
Credit facility, amount outstanding | 0 | $60,000,000 | $0 | |
Minimum Term Loan Facility [Member] | ||||
Long-Term Borrowings [Line Items] | ||||
Term Loan Facility, mandatory prepayment terms - percentage of excess cash flows | 0.00% | |||
Maximum Term Loan Facility [Member] | ||||
Long-Term Borrowings [Line Items] | ||||
Term Loan Facility, mandatory prepayment terms - percentage of excess cash flows | 50.00% |
Derivatives_Textual_Details
Derivatives (Textual) (Details) | 12 Months Ended |
Jan. 31, 2015 | |
Derivatives (Textuals) [Abstract] | |
Additional time period in which forecasted transaction is not expected to occur | 2 months |
Maximum Remaining Maturity of Foreign Currency Derivatives | 12 months |
Derivatives_Outstanding_Foreig
Derivatives (Outstanding Foreign Exchange Forward Contracts) (Details) (Cash Flow Hedging [Member], Forward Contracts [Member], USD $) | Jan. 31, 2015 | |
In Thousands, unless otherwise specified | ||
Assets and Liabilities [Member] | Euro Member Countries, Euro | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $5,659 | [1] |
Assets and Liabilities [Member] | British Pound [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 3,763 | [1] |
Inter-company Inventory and Accounts Receivables [Member] | Euro Member Countries, Euro | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 53,120 | [1] |
Inter-company Inventory and Accounts Receivables [Member] | British Pound [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 18,345 | [1] |
Inter-company Inventory and Accounts Receivables [Member] | Canadian Dollar [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $10,705 | [1] |
[1] | Amounts are reported in thousands and in U.S. Dollars equivalent as of January 31, 2015. |
Derivatives_Location_and_Amoun
Derivatives (Location and Amounts of Derivative Fair Values - Balance Sheet) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
The location and amounts of derivative fair values on the Condensed Consolidated Balance Sheets | ||
Asset Derivatives | $10,293 | $969 |
Liability Derivatives | 0 | 2,555 |
Foreign Exchange Forward Contracts [Member] | Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
The location and amounts of derivative fair values on the Condensed Consolidated Balance Sheets | ||
Asset Derivatives | 10,283 | 691 |
Foreign Exchange Forward Contracts [Member] | Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
The location and amounts of derivative fair values on the Condensed Consolidated Balance Sheets | ||
Asset Derivatives | 10 | 278 |
Foreign Exchange Forward Contracts [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
The location and amounts of derivative fair values on the Condensed Consolidated Balance Sheets | ||
Liability Derivatives | 0 | 2,503 |
Foreign Exchange Forward Contracts [Member] | Other Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
The location and amounts of derivative fair values on the Condensed Consolidated Balance Sheets | ||
Liability Derivatives | $0 | $52 |
Derivatives_Location_and_Amoun1
Derivatives (Location and Amounts of Derivative Fair Values - Statements of Operations and Comprehensive Income) (Details) (Foreign Exchange Forward Contracts [Member], USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | ||
Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivative Contracts (Effective Portion) | $16,572 | [1] | $6,435 | [1] |
Other Operating Income, Net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(Loss) | 2,537 | 378 | ||
Other Operating Income, Net | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Earnings on Derivative Contracts (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 215 | [2] | 248 | [2] |
Cost of Goods Sold | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion) | $440 | [3] | $857 | [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 reclassification from OCI into earnings that occurs when the hedged item affects earnings, which is when merchandise is sold to the Company’s customers. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive (Loss) Income (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |||
Accumulated Other Comprehensive (Loss) Income [Roll Forward] | ||||||
Beginning balance | ($20,917) | ($13,288) | $6,291 | |||
Other comprehensive income (loss) before reclassifications | -60,319 | -6,248 | -4,430 | |||
Reclassified from accumulated other comprehensive (loss) income(1) | -440 | [1] | -857 | [2] | -17,510 | [3] |
Tax effect on other comprehensive income (loss) | -1,904 | -524 | 2,361 | |||
Other Comprehensive Loss | -62,663 | -7,629 | -19,579 | |||
Ending balance | -83,580 | -20,917 | -13,288 | |||
Derivative Financial Instruments | ||||||
Accumulated Other Comprehensive (Loss) Income [Roll Forward] | ||||||
Beginning balance | -2,166 | -7,220 | 11,932 | |||
Other comprehensive income (loss) before reclassifications | 16,572 | 6,435 | -4,003 | |||
Reclassified from accumulated other comprehensive (loss) income(1) | -440 | [1] | -857 | [2] | -17,510 | [3] |
Tax effect on other comprehensive income (loss) | -866 | -524 | 2,361 | |||
Other Comprehensive Loss | 15,266 | 5,054 | -19,152 | |||
Ending balance | 13,100 | -2,166 | -7,220 | |||
Foreign Currency Translation | ||||||
Accumulated Other Comprehensive (Loss) Income [Roll Forward] | ||||||
Beginning balance | -18,751 | -6,068 | -5,641 | |||
Other comprehensive income (loss) before reclassifications | -76,891 | -12,683 | -427 | |||
Reclassified from accumulated other comprehensive (loss) income(1) | 0 | [1] | 0 | [2] | 0 | [3] |
Tax effect on other comprehensive income (loss) | -1,038 | 0 | 0 | |||
Other Comprehensive Loss | -77,929 | -12,683 | -427 | |||
Ending balance | ($96,680) | ($18,751) | ($6,068) | |||
[1] | For Fiscal 2014 the gain or loss was reclassified from Other Comprehensive (Loss) Income to the Cost of Goods Sold line item on the Consolidated Statement of Operations and Comprehensive (Loss) Income. | |||||
[2] | For Fiscal 2013 the gain or loss was reclassified from Other Comprehensive (Loss) Income to the Cost of Goods Sold line item on the Consolidated Statement of Operations and Comprehensive (Loss) Income. | |||||
[3] | For Fiscal 2012 the gain or loss was reclassified from Other Comprehensive (Loss) Income to the Cost of Goods Sold line item on the Consolidated Statement of Operations and Comprehensive (Loss) Income. |
Gilly_Hicks_Restructuring_Deta
Gilly Hicks Restructuring (Details) (USD $) | 12 Months Ended | 15 Months Ended | ||||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 31, 2015 | Nov. 01, 2013 | ||
store | ||||||
Non-Cash Charges [Abstract] | ||||||
Non-Cash Charge for Asset Impairment | $44,988,000 | $46,715,000 | $7,407,000 | |||
Gilly Hicks Restructuring (Textuals) [Abstract] | ||||||
Restructuring Charges | 8,431,000 | 81,500,000 | 0 | |||
International Stores [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Incurred Cost | 39,500,000 | [1] | ||||
U.S. Stores [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Incurred Cost | 50,400,000 | [1] | ||||
Gilly Hicks [Member] | ||||||
Non-Cash Charges [Abstract] | ||||||
Non-Cash Charge for Asset Impairment | 37,900,000 | |||||
Restructuring Reserve [Roll Forward] | ||||||
Accrued liability as of February 1, 2014 | 42,507,000 | |||||
Costs incurred | 11,631,000 | |||||
Cash payments | -48,141,000 | |||||
Accrued liability as of January 31, 2015 | 5,997,000 | 42,507,000 | 5,997,000 | |||
Gilly Hicks [Member] | Facility Closing [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Incurred Cost | 89,931,000 | [1] | ||||
Number of Stores | 24 | |||||
Non-Cash Charges [Abstract] | ||||||
Non-Cash Charge for Asset Impairment | 40,036,000 | |||||
Other Restructuring Costs | 1,230,000 | |||||
Cash Charges [Abstract] | ||||||
Lease terminations | 48,665,000 | |||||
Gilly Hicks Restructuring (Textuals) [Abstract] | ||||||
Total charges expected to be incurred | 91,200,000 | 91,200,000 | ||||
Restructuring and Related Cost, Expected Cost Remaining | $1,300,000 | $1,300,000 | ||||
[1] | As of January 31, 2015, the Company incurred aggregate pre-tax charges related to restructuring plans for the Gilly Hicks brand of $50.4 million for the U.S. Stores segment and $39.5 million for the International Stores segment. |
Retirement_Benefits_Details
Retirement Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Y | |||
H | |||
Supplemental Executive Retirement Plan Textuals [Line Items] | |||
Deferred Compensation Arrangement with Individual, Average Compensation Calculation Period | 36 months | ||
Supplemental Employee Retirement Plan [Member] | |||
Supplemental Executive Retirement Plan Textuals [Line Items] | |||
Retirement benefits, participant age requirement | 21 | ||
Retirement benefits, hours of service requirement (in hours) | 1,000 | ||
Contributions by employer | $13.80 | $18.30 | $21.10 |
Percentage of monthly compensation benefit received by CEO as per SERP | 50.00% | ||
Net expense related to Supplemental Executive Retirement Plan | $1 | $4.40 | $3.90 |
Segment_Reporting_Segment_Info
Segment Reporting (Segment Information, by Segment) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||||||
segment | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Number of reportable segments | 3 | |||||||||||||||
Net Sales | $1,119,544,000 | $911,453,000 | $890,605,000 | $822,428,000 | $1,299,137,000 | $1,033,293,000 | $945,698,000 | $838,769,000 | $3,744,030,000 | $4,116,897,000 | $4,510,805,000 | |||||
Depreciation and Amortization | 226,421,000 | 235,240,000 | 224,245,000 | |||||||||||||
Operating Income | 113,519,000 | [1] | 80,823,000 | [2] | 374,233,000 | [3] | ||||||||||
Total Assets | 2,505,167,000 | 2,850,997,000 | 2,505,167,000 | 2,850,997,000 | 2,987,401,000 | |||||||||||
Capital Expenditures | 174,624,000 | [4] | 163,924,000 | 339,862,000 | ||||||||||||
U.S. Stores [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | 1,878,542,000 | 2,161,183,000 | 2,615,138,000 | |||||||||||||
Depreciation and Amortization | 55,339,000 | 75,297,000 | 94,367,000 | |||||||||||||
Operating Income | 261,446,000 | [1] | 194,582,000 | [2] | 432,040,000 | [3] | ||||||||||
Total Assets | 349,088,000 | 414,463,000 | 349,088,000 | 414,463,000 | 587,334,000 | |||||||||||
Capital Expenditures | 41,887,000 | [4] | 18,599,000 | 3,016,000 | ||||||||||||
Charges related to asset impairment, Gilly Hicks Restructuring and the profit improvement initiative | 6,100,000 | 94,900,000 | 7,400,000 | |||||||||||||
International Stores [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | 1,032,946,000 | 1,178,798,000 | 1,195,016,000 | |||||||||||||
Depreciation and Amortization | 98,243,000 | 92,474,000 | 67,972,000 | |||||||||||||
Operating Income | 204,262,000 | [1] | 249,331,000 | [2] | 350,871,000 | [3] | ||||||||||
Total Assets | 616,336,000 | 805,257,000 | 616,336,000 | 805,257,000 | 840,317,000 | |||||||||||
Capital Expenditures | 44,429,000 | [4] | 82,805,000 | 218,933,000 | ||||||||||||
Charges related to asset impairment, Gilly Hicks Restructuring and the profit improvement initiative | 43,600,000 | 33,300,000 | ||||||||||||||
Direct-to-Consumer Operations [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | 832,542,000 | 776,916,000 | 700,651,000 | |||||||||||||
Depreciation and Amortization | 16,298,000 | 7,850,000 | 5,198,000 | |||||||||||||
Operating Income | 269,564,000 | [1] | 294,951,000 | [2] | 269,479,000 | [3] | ||||||||||
Total Assets | 150,228,000 | 122,381,000 | 150,228,000 | 122,381,000 | 63,063,000 | |||||||||||
Capital Expenditures | 55,007,000 | [4] | 15,633,000 | 22,567,000 | ||||||||||||
Charges related to asset impairment, Gilly Hicks Restructuring and the profit improvement initiative | 400,000 | |||||||||||||||
Segment Total [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | 3,744,030,000 | 4,116,897,000 | 4,510,805,000 | |||||||||||||
Depreciation and Amortization | 169,880,000 | 175,621,000 | 167,537,000 | |||||||||||||
Operating Income | 735,272,000 | [1] | 738,864,000 | [2] | 1,052,390,000 | [3] | ||||||||||
Total Assets | 1,115,652,000 | 1,342,101,000 | 1,115,652,000 | 1,342,101,000 | 1,490,714,000 | |||||||||||
Capital Expenditures | 141,323,000 | [4] | 117,037,000 | 244,516,000 | ||||||||||||
Other | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | 0 | [5] | 0 | [5] | 0 | [5] | ||||||||||
Depreciation and Amortization | 56,541,000 | [5] | 59,619,000 | [5] | 56,708,000 | [5] | ||||||||||
Operating Income | -621,753,000 | [1],[5] | -658,041,000 | [2],[5] | -678,157,000 | [3],[5] | ||||||||||
Total Assets | 1,389,515,000 | [5] | 1,508,896,000 | [5] | 1,389,515,000 | [5] | 1,508,896,000 | [5] | 1,496,687,000 | [5] | ||||||
Capital Expenditures | 33,301,000 | [4],[5] | 46,887,000 | [5] | 95,346,000 | [5] | ||||||||||
Charges related to asset impairment, Gilly Hicks Restructuring and the profit improvement initiative | 28,100,000 | 13,800,000 | ||||||||||||||
Distribution Center DTC Operations [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Capital Expenditures | 35,600,000 | [4] | ||||||||||||||
Europe [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | $959,981,000 | $1,116,781,000 | $1,137,664,000 | |||||||||||||
[1] | Includes charges related to asset impairment, lease terminations and store closures, the restructuring of the Gilly Hicks brand, the Company's profit improvement initiative, CEO transition costs and corporate governance matters of which $6.1 million is included in U.S. stores, $43.6 million is included in International Stores, $0.4 million is included in Direct-to-Consumer Operations and $28.1 million is included in Other for Fiscal 2014. | |||||||||||||||
[2] | Includes charges related to asset impairment, restructuring plans of the Gilly Hicks brand and the Company's profit improvement initiative of $94.9 million for U.S. Stores, $33.3 million for International Stores and $13.8 million for Other for Fiscal 2013. | |||||||||||||||
[3] | Includes charges for asset impairments of $7.4 million for U.S. Stores for Fiscal 2012. | |||||||||||||||
[4] | Capital expenditures of $35.6 million related to the conversion of one of the Company's Columbus, Ohio distribution centers to a dedicated Direct-to-Consumer distribution center are included in Direct-to-Consumer Operations. | |||||||||||||||
[5] | Includes corporate functions 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. Operating Income includes: 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. A reconciliation of segment operating income to consolidated operating income is provided below. |
Segment_Reporting_Net_Sales_an
Segment Reporting (Net Sales and Long-lived Assets) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Net Sales | $1,119,544 | $911,453 | $890,605 | $822,428 | $1,299,137 | $1,033,293 | $945,698 | $838,769 | $3,744,030 | $4,116,897 | $4,510,805 |
Long-Lived Assets | 1,066,899 | 1,237,001 | 1,066,899 | 1,237,001 | |||||||
United States | |||||||||||
Net Sales | 2,408,427 | 2,659,089 | 3,087,205 | ||||||||
Long-Lived Assets | 581,430 | 606,758 | 581,430 | 606,758 | |||||||
Europe [Member] | |||||||||||
Net Sales | 959,981 | 1,116,781 | 1,137,664 | ||||||||
Long-Lived Assets | 326,726 | 438,931 | 326,726 | 438,931 | |||||||
Other International | |||||||||||
Net Sales | 375,622 | 341,027 | 285,936 | ||||||||
Long-Lived Assets | $158,743 | $191,312 | $158,743 | $191,312 |
Segment_Reporting_Net_Sales_by
Segment Reporting (Net Sales by Brand) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Schedule of Revenue by Brand [Line Items] | |||||||||||
Net Sales | $1,119,544 | $911,453 | $890,605 | $822,428 | $1,299,137 | $1,033,293 | $945,698 | $838,769 | $3,744,030 | $4,116,897 | $4,510,805 |
Abercrombie & Fitch [Member] | |||||||||||
Schedule of Revenue by Brand [Line Items] | |||||||||||
Net Sales | 1,449,946 | 1,547,216 | 1,704,190 | ||||||||
Abercrombie Kids [Member] | |||||||||||
Schedule of Revenue by Brand [Line Items] | |||||||||||
Net Sales | 321,353 | 346,739 | 382,509 | ||||||||
Hollister [Member] | |||||||||||
Schedule of Revenue by Brand [Line Items] | |||||||||||
Net Sales | 1,947,869 | 2,127,816 | 2,314,462 | ||||||||
Gilly Hicks [Member] | |||||||||||
Schedule of Revenue by Brand [Line Items] | |||||||||||
Net Sales | $24,862 | $95,126 | $109,644 |
Segment_Reporting_Other_Segmen
Segment Reporting (Other Segment Operating Income) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Operating Income (Loss) | $113,519 | [1] | $80,823 | [2] | $374,233 | [3] |
US Stores, International Stores And Direct-to-Consumer Operations Subtotal [Member] | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Operating Income (Loss) | 735,272 | [1] | 738,864 | [2] | 1,052,390 | [3] |
Other | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Operating Income (Loss) | -621,753 | [1],[4] | -658,041 | [2],[4] | -678,157 | [3],[4] |
Stores and Distribution Expense [Member] | Other | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Operating Income (Loss) | -164,765 | -198,910 | -223,611 | |||
General and Administrative Expense [Member] | Other | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Operating Income (Loss) | -460,917 | -481,783 | -473,880 | |||
Restructuring Charges [Member] | Other | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Operating Income (Loss) | 0 | -421 | 0 | |||
Asset Impairment Charges [Member] | Other | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Operating Income (Loss) | -11,310 | 0 | 0 | |||
Other Operating Income (Expense) [Member] | Other | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Operating Income (Loss) | $15,239 | $23,073 | $19,334 | |||
[1] | Includes charges related to asset impairment, lease terminations and store closures, the restructuring of the Gilly Hicks brand, the Company's profit improvement initiative, CEO transition costs and corporate governance matters of which $6.1 million is included in U.S. stores, $43.6 million is included in International Stores, $0.4 million is included in Direct-to-Consumer Operations and $28.1 million is included in Other for Fiscal 2014. | |||||
[2] | Includes charges related to asset impairment, restructuring plans of the Gilly Hicks brand and the Company's profit improvement initiative of $94.9 million for U.S. Stores, $33.3 million for International Stores and $13.8 million for Other for Fiscal 2013. | |||||
[3] | Includes charges for asset impairments of $7.4 million for U.S. Stores for Fiscal 2012. | |||||
[4] | Includes corporate functions 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. Operating Income includes: 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. A reconciliation of segment operating income to consolidated operating income is provided below. |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||
Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Aug. 02, 2014 | Aug. 03, 2013 | Nov. 01, 2014 | Nov. 02, 2013 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |||||||||
Schedule of Items Affecting Comparability [Line Items] | |||||||||||||||||||||||
Tax true-up, per share | $0.11 | ||||||||||||||||||||||
Tax Effect, Per Share | $0.52 | $0.17 | $0.02 | $0.15 | $0.38 | $0.72 | $0.02 | ||||||||||||||||
Increase (decrease) in pre-tax income related to correction of errors | ($100,000) | ($600,000) | ($1,400,000) | ($1,500,000) | ($6,500,000) | $2,100,000 | $4,500,000 | $2,500,000 | ($2,900,000) | $5,500,000 | ($3,300,000) | $6,300,000 | ($2,900,000) | $2,600,000 | |||||||||
Increase (decrease) in after tax income related to correction of errors | -100,000 | -400,000 | -900,000 | -900,000 | -1,700,000 | -2,000,000 | -1,800,000 | 800,000 | |||||||||||||||
Unrelated tax charge correction | -400,000 | -2,200,000 | 1,900,000 | -1,200,000 | -1,200,000 | -400,000 | -400,000 | -900,000 | |||||||||||||||
Increase (decrease) in net income related to correction of errors | 100,000 | 800,000 | 900,000 | 900,000 | 6,200,000 | -3,000,000 | -2,900,000 | -600,000 | 1,700,000 | -2,500,000 | 2,400,000 | -4,700,000 | 2,200,000 | -100,000 | |||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||||||
Net sales | 1,119,544,000 | 911,453,000 | 890,605,000 | 822,428,000 | 1,299,137,000 | 1,033,293,000 | 945,698,000 | 838,769,000 | 3,744,030,000 | 4,116,897,000 | 4,510,805,000 | ||||||||||||
Gross profit | 681,885,000 | 567,070,000 | 552,956,000 | 511,659,000 | 767,107,000 | 651,040,000 | 604,122,000 | 553,166,000 | 2,313,570,000 | 2,575,435,000 | 2,816,709,000 | ||||||||||||
Net Income (Loss) | 44,388,000 | [1],[2] | 18,227,000 | [1],[3] | 12,877,000 | [1],[4] | -23,671,000 | [1],[5] | 66,106,000 | [1],[6] | -15,644,000 | [1],[7] | 11,370,000 | [1],[8] | -7,203,000 | [1],[9] | 51,821,000 | 54,628,000 | 237,011,000 | ||||
Net income (loss) per diluted share (in dollars per share) | $0.63 | [1],[10],[2] | $0.25 | [1],[10],[3] | $0.17 | [1],[10],[4] | ($0.32) | [1],[10],[5] | $0.85 | [1],[10],[6] | ($0.20) | [1],[10],[7] | $0.14 | [1],[10],[8] | ($0.09) | [1],[10],[9] | $0.71 | $0.69 | $2.85 | ||||
Certain Corporate Governance Matters [Member] | |||||||||||||||||||||||
Schedule of Items Affecting Comparability [Line Items] | |||||||||||||||||||||||
Charges related to asset impairment, lease terminations and store closures, the restructuring of the Gilly Hicks Brand, the Company's profit improvement initiative and certain corporate governance matters | 5,200,000 | 600,000 | 6,900,000 | ||||||||||||||||||||
Gilly Hicks Restructuring | |||||||||||||||||||||||
Schedule of Items Affecting Comparability [Line Items] | |||||||||||||||||||||||
Charges related to asset impairment, lease terminations and store closures, the restructuring of the Gilly Hicks Brand, the Company's profit improvement initiative and certain corporate governance matters | 2,400,000 | 400,000 | 5,600,000 | 36,800,000 | 44,700,000 | ||||||||||||||||||
Profit Improvement Initiative [Member] | |||||||||||||||||||||||
Schedule of Items Affecting Comparability [Line Items] | |||||||||||||||||||||||
Charges related to asset impairment, lease terminations and store closures, the restructuring of the Gilly Hicks Brand, the Company's profit improvement initiative and certain corporate governance matters | 700,000 | 700,000 | 2,000,000 | 3,100,000 | 3,700,000 | 7,600,000 | 2,600,000 | ||||||||||||||||
Asset Impairment [Member] | |||||||||||||||||||||||
Schedule of Items Affecting Comparability [Line Items] | |||||||||||||||||||||||
Charges related to asset impairment, lease terminations and store closures, the restructuring of the Gilly Hicks Brand, the Company's profit improvement initiative and certain corporate governance matters | 28,300,000 | 16,700,000 | 3,100,000 | 43,600,000 | |||||||||||||||||||
Lease Termination and Store Closure Costs [Member] | |||||||||||||||||||||||
Schedule of Items Affecting Comparability [Line Items] | |||||||||||||||||||||||
Charges related to asset impairment, lease terminations and store closures, the restructuring of the Gilly Hicks Brand, the Company's profit improvement initiative and certain corporate governance matters | $3,400,000 | $2,300,000 | |||||||||||||||||||||
[1] | The Company does not believe these corrections were material to any current or prior interim or annual periods that were affected. | ||||||||||||||||||||||
[2] | The fourth quarter of Fiscal 2014 included pre-tax charges of $28.3 million for asset impairment, $5.2 million related to certain corporate governance matters and CEO transition costs, $3.4 million related to lease terminations and store closures, $2.4 million related to the restructuring of the Gilly Hicks brand and $0.7 million related to the Company's profit improvement initiative. Net income per diluted share included $0.52 related to the charges. The thirteen and fifty-two weeks ended January 31, 2015 included the correction of certain errors relating to prior periods. The out-of-period correction of errors resulted in a decrease to income before taxes and net income of $0.1 million for the thirteen weeks ended January 31, 2015. The out-of-period correction of errors resulted in a decrease in income before taxes of $2.9 million, or $1.8 million after tax, and an unrelated tax charge of $0.4 million, for a combined reduction to net income of $2.2 million for the fifty-two weeks ended January 31, 2015. | ||||||||||||||||||||||
[3] | The third quarter of Fiscal 2014 included pre-tax charges of $16.7 million for asset impairment, $2.3 million related to lease terminations and store closures, $0.7 million related to the Company's profit improvement initiative and $0.6 million related to certain corporate governance matters. Net income per diluted share included $0.17 related to the charges. The thirteen and thirty-nine weeks ended November 1, 2014 included the correction of certain errors relating to prior periods. The out-of-period correction of errors resulted in a decrease to income before taxes of $0.6 million, or $0.4 million after tax, and an unrelated tax charge of $0.4 million, for a combined reduction to net income of $0.8 million for the thirteen weeks ended November 1, 2014. The out-of-period correction of errors results in a decrease to income before taxes of $3.3 million, or $2.0 million after tax, and an unrelated tax charge of $0.4 million, for a combined reduction to net income of $2.4 million for the thirty-nine weeks ended November 1, 2014. | ||||||||||||||||||||||
[4] | The second quarter of Fiscal 2014 included pre-tax charges of $2.0 million related to the Company's profit improvement initiative and $0.4 million related to the restructuring of the Gilly Hicks brand. Net income per diluted share included $0.02 related to the charges. The thirteen and twenty-six weeks ended August 2, 2014 included the correction of certain errors relating to prior periods. The out-of-period correction of errors resulted in a decrease to income before taxes of $1.4 million, or $0.9 million after tax, resulting in a $0.9 million to net income for the thirteen weeks ended August 2, 2014. The out-of-period correction of errors resulted in an increase to loss before taxes of $2.9 million, or $1.7 million after tax for the twenty-six weeks ended August 2, 2014. | ||||||||||||||||||||||
[5] | The first quarter of Fiscal 2014 included pre-tax charges of $6.9 million related to certain corporate governance matters, $5.6 million related to the restructuring of the Gilly Hicks brand, and $3.1 million related to the Company's profit improvement initiative. Net loss per diluted share included $0.15 related to the charges. The thirteen weeks ended May 3, 2014 included correction of certain errors relating to prior periods. The out-of-period correction of errors resulted in an increase to loss before taxes of $1.5 million, or $0.9 million after tax. | ||||||||||||||||||||||
[6] | The fourth quarter of Fiscal 2014 included pre-tax charges of $3.1 million for asset impairment, $36.8 million related to the restructuring of the Gilly Hicks brand and $3.7 million related to the Company's profit improvement initiative. Earnings per diluted share included $0.38 related to the charges and $0.11 for a tax true-up related to the restructuring, asset impairment and profit improvement charges primarily incurred in the third quarter of Fiscal 2013, for the true-up of the estimated full year tax rate applied as of the third quarter to the full year Fiscal 2013 tax rate. The thirteen week period ended February 1, 2014 included an increase in pre-tax expense of $6.5 million and an unrelated tax charge of $2.2 million for the correction of errors related to prior periods. The effect of these corrections decrease net income by $6.2 million for the thirteen week period ended February 1, 2014; the fifty-two week period ended February 1, 2014 included a reduction of pre-tax expense of $2.6 million and an unrelated tax expense of $0.9 million. | ||||||||||||||||||||||
[7] | The third quarter of Fiscal 2013 included pre-tax charges of $43.6 million for asset impairment, $44.7 million related to the restructuring of the Gilly Hicks brand and $7.6 million related to the Company's profit improvement initiative. Earnings per diluted share included $0.72 related to the charges. The thirteen week period ended November 2, 2013 included a reduction of pre-tax expense of $2.1 million and an unrelated tax benefit of $1.9 million for the correction of errors related to prior periods; the thirty-nine week period ended November 2, 2013 included a reduction of pre-tax expense of $6.3 million for the correction of errors related to prior periods. The effect of these corrections increased net income by $3.0 million and $4.7 million for the thirteen and thirty-nine week periods ended November 2, 2013, respectively. | ||||||||||||||||||||||
[8] | The second quarter of Fiscal 2013 included pre-tax charges of $2.6 million related to the Company's profit improvement initiative. Earnings per diluted share included $0.02 related to the charges. The thirteen week period ended August 3, 2013 included a reduction of pre-tax expense of $4.5 million for the correction of errors related to prior periods; the twenty-six week period ended August 3, 2013 included a reduction of pre-tax expense of $5.5 million and an unrelated tax charges of $1.2 million for the correction of errors related to prior periods. The effect of these corrections increased net income by $2.9 million and $2.5 million for the thirteen and twenty-six week periods ended August 3, 2013, respectively. | ||||||||||||||||||||||
[9] | The thirteen weeks ended May 4, 2013 included a reduction of pre-tax loss of $2.5 million and an unrelated tax charge of $1.2 million for the correction of errors relating to prior periods. The effect of these corrections decreased net loss by $0.6 million for the thirteen week period ended May 4, 2013. | ||||||||||||||||||||||
[10] | Net income (loss) per diluted share (Diluted EPS) was computed individually for each of the quarters presented using weighted average number of shares outstanding during the quarter while Diluted EPS for the full year is computed using the average of the weighted average number of shares outstanding each quarter; therefore, the sum of Diluted EPS for the quarters may not equal the total for the year. |