Basis of Presentation

9 Months Ended

Nov. 02, 2013

Notes to Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

Interim Financial Information

The Condensed Consolidated Financial Statements are unaudited but, in the opinion of management, contain all adjustments (which are of a normal recurring nature) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. All intercompany accounts and transactions have been eliminated.

The results of operations for the 2013 interim periods presented in the Condensed Consolidated Financial Statements are not necessarily indicative of results to be expected for Fiscal 2013.

The February 2, 2013 Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheets of ANN INC. (the “Company”) included in its Annual Report on Form 10-K for the fiscal year ended February 2, 2013.

Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission. As such, the financial information set forth herein should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2013. The Company believes that the disclosures made are adequate to prevent the interim financial statements from being misleading.

Immaterial Corrections to Condensed Consolidated Financial Statements

As previously disclosed in Note 1 to the Company’s Consolidated Financial Statements in its Fiscal 2012 Annual Report on Form 10-K, the Company made an immaterial correction to previously reported balance sheet amounts related to shares issued out of Treasury Stock in connection with the exercise of stock options, the issuance of restricted stock grants and the vesting, in shares, of restricted unit grants. The cumulative impact of this correction had the effect of reducing both Treasury Stock and Additional Paid-in Capital by $51.7 million as of October 27, 2012. In addition, as disclosed in Note 1 to the Company’s Condensed Consolidated Financial Statements for the quarter ended October 27, 2012, the Company recognized $6.2 million in revenue for a portion of the unredeemed value of gift cards and merchandise credits during the third quarter of Fiscal 2012.  The Company has determined that this amount was incorrectly reported in the Changes in assets and liabilities section of the Condensed Consolidated Statement of Cash Flows and should have been separately presented as a direct adjustment to reconcile Net income to Net cash provided by operating activities.  This correction had no impact on Net cash provided by operating activities.  The Company has restated the previously presented Condensed Consolidated Statement of Cash Flows for the nine months ended October 27, 2012 to present Recognition of gift card and merchandise credit breakage as a separate line item and properly state the change in Accounts payable, accrued expenses and other current liabilities as $26.5 million (previously reported as $20.3 million).