2.2.0.7 false Summary of Significant Accounting Policies 0202 - Disclosure - Summary of Significant Accounting Policies true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Summary of Significant Accounting Policies [Abstract] 0 aeo_SummaryOfSignificantAccountingPoliciesAbstract aeo false na duration Summary of Significant Accounting Policies. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string Summary of Significant Accounting Policies. false 3 Summary of Significant Accounting Policies 1 us-gaap_SignificantAccountingPoliciesTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0   <div align="left" style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>2. Summary of Significant Accounting Policies</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Principles of Consolidation</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. At October 30, 2010, the Company operated in one reportable segment. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">On March 5, 2010, the Company’s Board of Directors approved management’s recommendation to proceed with the closure of the M+O brand. The Company notified employees and issued a press release announcing this decision on March 9, 2010. The decision to take this action resulted from an extensive evaluation of the brand and review of strategic alternatives, which revealed that it was not achieving performance levels that warranted further investment. The Company completed the closure of the M+O stores and e-commerce operation during the 13 weeks ended July 31, 2010 and the Consolidated Financial Statements reflect the presentation of M+O as a discontinued operation. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Refer to Note 12 to the Consolidated Financial Statements for additional information regarding the discontinued operations for M+O. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Fiscal Year</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s financial year is a 52/53 week year that ends on the Saturday nearest to January 31. As used herein, “Fiscal 2011” and “Fiscal 2010” refer to the 52 week periods ending January 28, 2012 and January 29, 2011, respectively. “Fiscal 2009” and “Fiscal 2008” refer to the 52 week periods ended January 30, 2010 and January 31, 2009, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Estimates</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of our contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, our management reviews its estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Recent Accounting Pronouncements</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In September 2009, the Financial Accounting Standards Board (“FASB”) approved the consensus on Emerging Issues Task Force (“EITF”) 08-1, <i>Revenue Arrangements with Multiple Deliverables,</i> primarily codified under Accounting Standards Codification (“ASC”) 605, <i>Revenue Recognition, </i>as Accounting Standards Update (“ASU”) 2009-13, <i>Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements </i>(“ASU 2009-13”). ASU 2009-13 requires entities to allocate revenue in an arrangement using estimated selling prices of the delivered goods and services based on a selling price hierarchy. The amendments eliminate the residual method of revenue allocation and require revenue to be allocated among the various deliverables in a multi-element transaction using the relative selling price method. This guidance is effective for revenue arrangements entered into or materially modified in fiscal years beginning after June 15, 2010. The Company is currently evaluating the impact that the adoption of ASU 2009-13 will have on its Consolidated Financial Statements. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In January 2010, the FASB issued ASU 2010-06, <i>Fair Value Measurements and Disclosures Topic 820: Improving Disclosures about Fair Value Measurements </i>(“ASU 2010-06”). ASU 2010-06 requires new disclosures regarding transfers in and out of the Level 1 and 2 and activity within Level 3 fair value measurements and clarifies existing disclosures of inputs and valuation techniques for Level 2 and 3 fair value measurements. The new disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosure of activity within Level 3 fair value measurements, which is effective for fiscal years beginning after December 15, 2010, and for interim reporting periods within those years. The Company adopted the new disclosures effective January 31, 2010, except for the disclosure of activity within Level 3 fair value measurements. The Level 3 disclosures are effective for the Company at the beginning of Fiscal 2011. The adoption of ASU 2010-06 did not have a material impact on the disclosures within the Company’s Consolidated Financial Statements. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Foreign Currency Translation</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Canadian dollar is the functional currency for the Canadian business. In accordance with ASC 830, <i>Foreign Currency Matters</i>, assets and liabilities denominated in foreign currencies were translated into U.S. dollars (the reporting currency) at the exchange rate prevailing at the balance sheet date. Revenues and expenses denominated in foreign currencies were translated into U.S. dollars at the monthly average exchange rate for the period. Gains or losses resulting from foreign currency transactions are included in the results of operations, whereas, related translation adjustments are reported as an element of other comprehensive income in accordance with ASC 220, <i>Comprehensive Income </i>(refer to Note 8 to the Consolidated Financial Statements). </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Revenue Recognition</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Revenue is recorded for store sales upon the purchase of merchandise by customers. The Company’s e-commerce operation records revenue upon the estimated customer receipt date of the merchandise. Shipping and handling revenues are included in net sales. Sales tax collected from customers is excluded from revenue and is included as part of accrued income and other taxes on the Company’s Consolidated Balance Sheets. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Revenue is recorded net of estimated and actual sales returns and deductions for coupon redemptions and other promotions. The Company records the impact of adjustments to its sales return reserve quarterly within net sales and cost of sales. The sales return reserve reflects an estimate of sales returns based on projected merchandise returns determined through the use of historical average return percentages. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Revenue is not recorded on the purchase of gift cards. A current liability is recorded upon purchase, and revenue is recognized when the gift card is redeemed for merchandise. Additionally, the Company recognizes revenue on unredeemed gift cards based on an estimate of the amounts that will not be redeemed (“gift card breakage”), determined through historical redemption trends. Gift card breakage revenue is recognized in proportion to actual gift card redemptions as a component of net sales. For further information on the Company’s gift card program, refer to the Gift Cards caption below. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company sells off end-of-season, overstock, and irregular merchandise to a third-party. The proceeds from these sales are presented on a gross basis, with proceeds and cost of sell-offs recorded in net sales and cost of sales, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Cost of Sales, Including Certain Buying, Occupancy and Warehousing Expenses</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Cost of sales consists of merchandise costs, including design, sourcing, importing and inbound freight costs, as well as markdowns, shrinkage and certain promotional costs (collectively “merchandise costs”) and buying, occupancy, and warehousing costs. Buying, occupancy and warehousing costs consist of compensation, employee benefit expenses and travel for our buyers and certain senior merchandising executives; rent and utilities related to our stores, corporate headquarters, distribution centers and other office space; freight from our distribution centers to the stores; compensation and supplies for our distribution centers, including purchasing, receiving and inspection costs; and shipping and handling costs related to our e-commerce operation. Merchandise margin is the difference between net sales and merchandise costs. Gross profit is the difference between net sales and cost of sales. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Selling, General and Administrative Expenses</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Selling, general and administrative expenses consist of compensation and employee benefit expenses, including salaries, incentives and related benefits associated with our stores and corporate headquarters. Selling, general and administrative expenses also include advertising costs, supplies for our stores and home office, communication costs, travel and entertainment, leasing costs and services purchased. Selling, general and administrative expenses do not include compensation, employee benefit expenses and travel for our design, sourcing and importing teams, our buyers and our distribution centers as these amounts are recorded in cost of sales. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Other Income (Expense), Net</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Other income (expense), net consists primarily of interest income/expense and foreign currency transaction gain/loss. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Other-than-Temporary Impairment</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company evaluates its investments for impairment in accordance with ASC 320, <i>Investments — Debt and Equity Securities </i>(“ASC 320”). ASC 320 provides guidance for determining when an investment is considered impaired, whether impairment is other-than-temporary, and measurement of an impairment loss. An investment is considered impaired if the fair value of the investment is less than its cost. If, after consideration of all available evidence to evaluate the realizable value of its investment, impairment is determined to be other-than-temporary, then an impairment loss is recognized in the Consolidated Statement of Operations equal to the difference between the investment’s cost and its fair value. As of May 3, 2009, the Company adopted ASC 320-10-65, <i>Transition Related to FSP FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary-Impairments </i>(“ASC 320-10-65”), which modifies the requirements for recognizing other-than-temporary impairment (“OTTI”) and changes the impairment model for debt securities. In addition, ASC 320-10-65 requires additional disclosures relating to debt and equity securities both in the interim and annual periods as well as requires the Company to present total OTTI in the Consolidated Statements of Operations, with an offsetting reduction for any non-credit loss impairment amount recognized in other comprehensive income (“OCI”). During the 39 weeks ended October 30, 2010, the Company recorded OTTI charges in earnings related to credit losses on its investment securities of $1.2 million. There was $0.2 million of net impairment loss recognized in earnings during the 39 weeks ended October 31, 2009. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Refer to Notes 3 and 4 to the Consolidated Financial Statements for additional information regarding net impairment losses recognized in earnings. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Cash and Cash Equivalents, Short-term Investments and Long-term Investments</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Cash includes cash equivalents. The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">As of October 30, 2010, short-term investments included auction rate securities (“ARS”) classified as available for sale that the Company expects to be redeemed at par within 12 months, based on notice from the issuer. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">As of October 30, 2010, long-term investments included investments with remaining maturities of greater than 12 months and consisted of ARS classified as available-for-sale that have experienced failed auctions or have long-term auction resets and the Company’s ARS Call Option related to investment sales during the 13 weeks ended October 30, 2010. The remaining contractual maturities of our long-term ARS investments are approximately 20 months and the ARS Call Option expires on October 29, 2013. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Unrealized gains and losses on the Company’s available-for-sale securities are excluded from earnings and are reported as a separate component of stockholders’ equity, within accumulated other comprehensive income, until realized. The components of OTTI losses related to credit losses, as defined by ASC 320, are considered by the Company to be realized losses. When available-for-sale securities are sold, the cost of the securities is specifically identified and is used to determine any realized gain or loss. Realized gains or losses are recognized separately on the Company’s Consolidated Statements of Operations as a realized gain or loss on sale of investment securities. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Refer to Note 3 to the Consolidated Financial Statements for information regarding cash and cash equivalents, short-term investments and long-term investments. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Merchandise Inventory</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Merchandise inventory is valued at the lower of average cost or market, utilizing the retail method. Average cost includes merchandise design and sourcing costs and related expenses. The Company records merchandise receipts at the time merchandise is delivered to the foreign shipping port by the manufacturer (FOB port). This is the point at which title and risk of loss transfer to the Company. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company reviews its inventory levels to identify slow-moving merchandise and generally uses markdowns to clear merchandise. Additionally, the Company estimates a markdown reserve for future planned permanent markdowns related to current inventory. Markdowns may occur when inventory exceeds customer demand for reasons of style, seasonal adaptation, changes in customer preference, lack of consumer acceptance of fashion items, competition, or if it is determined that the inventory in stock will not sell at its currently ticketed price. Such markdowns may have a material adverse impact on earnings, depending on the extent and amount of inventory affected. The Company also estimates a shrinkage reserve for the period between the last physical count and the balance sheet date. The estimate for the shrinkage reserve, based on historical results, can be affected by changes in merchandise mix and changes in actual shrinkage trends. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Income Taxes</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company calculates income taxes in accordance with ASC 740, <i>Income Taxes </i> (“ASC 740”), which requires the use of the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based on the difference between the Consolidated Financial Statement carrying amounts of existing assets and liabilities and their respective tax bases as computed pursuant to ASC 740. Deferred tax assets and liabilities are measured using the tax rates, based on certain judgments regarding enacted tax laws and published guidance, in effect in the years when those temporary differences are expected to reverse. A valuation allowance is established against the deferred tax assets when it is more likely than not that some portion or all of the deferred taxes may not be realized. Changes in the Company’s level and composition of earnings, tax laws or the deferred tax valuation allowance, as well as the results of tax audits may materially impact our effective tax rate. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company evaluates its income tax positions in accordance with ASC 740 which prescribes a comprehensive model for recognizing, measuring, presenting and disclosing in the financial statements tax positions taken or expected to be taken on a tax return, including a decision whether to file or not to file in a particular jurisdiction. Under ASC 740, a tax benefit from an uncertain position may be recognized only if it is “more likely than not” that the position is sustainable based on its technical merits. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The calculation of the deferred tax assets and liabilities, as well as the decision to recognize a tax benefit from an uncertain position and to establish a valuation allowance require management to make estimates and assumptions. The Company believes that its assumptions and estimates are reasonable, although actual results may have a positive or negative material impact on the balances of deferred tax assets and liabilities, valuation allowances, or net income. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Property and Equipment</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Property and equipment is recorded on the basis of cost with depreciation computed utilizing the straight-line method over the assets’ estimated useful lives. The useful lives of our major classes of assets are as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="15%"> </td> <td width="5%"> </td> <td width="80%"> </td> </tr>   <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Buildings </div></td> <td> </td> <td align="left" valign="top">25 years</td> </tr> <tr valign="bottom"> <td valign="top" nowrap="nowrap"> <div style="margin-left:0px; text-indent:-0px">Leasehold Improvements </div></td> <td> </td> <td align="left" valign="top">Lesser of 10 years or the term of the lease</td> </tr> <tr valign="bottom"> <td valign="top" nowrap="nowrap"> <div style="margin-left:0px; text-indent:-0px">Fixtures and equipment </div></td> <td> </td> <td align="left" valign="top">5 years</td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In accordance with ASC 360, <i>Property, Plant, and Equipment </i>(“ASC 360”), the Company’s management evaluates the value of leasehold improvements and store fixtures associated with retail stores, which have been open longer than one year. The Company evaluates long-lived assets for impairment at the individual store level, which is the lowest level at which individual cash flows can be identified. Impairment losses are recorded on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of the assets. When events such as these occur, the impaired assets are adjusted to their estimated fair value and an impairment loss is recorded separately as a component of operating income under loss on impairment of assets. During the 26 weeks ended July 31, 2010, the Company recorded asset impairment charges of $18.0 million related to the impairment of M+O stores. Based on the Company’s decision to close all M+O stores in Fiscal 2010, the Company determined that the stores not previously impaired would not be able to generate sufficient cash flow over the life of the related leases to recover the Company’s initial investment in them. No asset impairment charges were recorded in the 13 weeks ended October 30, 2010. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Refer to Note 12 to the Consolidated Financial Statements for additional information regarding the discontinued operations for M+O. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Goodwill</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">As of October 30, 2010, the Company had approximately $11.4 million of goodwill compared to $11.2 million as of January 30, 2010. The Company’s goodwill is primarily related to the acquisition of its importing operations on January 31, 2000, as well as the acquisition of its Canadian business on November 29, 2000. The increase in goodwill is due to the fluctuation in the foreign exchange spot rate at which the Canadian goodwill is translated. In accordance with ASC 350, <i>Intangibles- Goodwill and Other, </i>the Company evaluates goodwill for possible impairment on at least an annual basis and last performed an annual impairment test as of January 30, 2010. As a result of the Company’s annual goodwill impairment test, the Company concluded that its goodwill was not impaired. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Gift Cards</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The value of a gift card is recorded as a current liability upon purchase, and revenue is recognized when the gift card is redeemed for merchandise. The Company estimates gift card breakage and recognizes revenue in proportion to actual gift card redemptions as a component of net sales. The Company determines an estimated gift card breakage rate by continuously evaluating historical redemption data and the time when there is a remote likelihood that a gift card will be redeemed. During the 13 weeks ended October 30, 2010 and October 31, 2009, the Company recorded $0.7 million and $1.0 million, respectively, of revenue related to gift card breakage. During the 39 weeks ended October 30, 2010 and October 31, 2009, the Company recorded $2.5 million and $4.2 million, respectively, of revenue related to gift card breakage. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Deferred Lease Credits</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Deferred lease credits represent the unamortized portion of construction allowances received from landlords related to the Company’s retail stores. Construction allowances are generally comprised of cash amounts received by the Company from its landlords as part of the negotiated lease terms. The Company records a receivable and a deferred lease credit liability at the lease commencement date (date of initial possession of the store). The deferred lease credit is amortized on a straight-line basis as a reduction of rent expense over the term of the original lease (including the pre-opening build-out period) and any subsequent renewal terms. The receivable is reduced as amounts are received from the landlord. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Co-branded Credit Card and Customer Loyalty Program</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company offers a co-branded credit card (the “AE Visa Card”) and a private label credit card (the “AE Credit Card”) under both the American Eagle and aerie brands. Both of these credit cards are issued by a third-party bank (the “Bank”), and the Company has no liability to the Bank for bad debt expense, provided that purchases are made in accordance with the Bank’s procedures. Once a customer is approved to receive the AE Visa Card and the card is activated, the customer is eligible to participate in the Company’s credit card rewards program. On January 1, 2010, the Company modified the benefits of the AE Visa and AE Credit Card programs to make both credit cards a part of the rewards program. Customers who make purchases at AE, aerie and 77kids earn discounts in the form of savings certificates when certain purchase levels are reached. Also, AE Visa Card customers, who make purchases at other retailers where the card is accepted, earn additional discounts. Savings certificates are valid for 90 days from issuance. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Points earned under the credit card rewards program on purchases at AE and aerie are accounted for by analogy to ASC 605-25, <i>Revenue Recognition, Multiple Element Arrangements </i>(“ASC 605-25”). The Company believes that points earned under its point and loyalty programs represent deliverables in a multiple element arrangement rather than a rebate or refund of cash. Accordingly, the portion of the sales revenue attributed to the award points is deferred and recognized when the award is redeemed or when the points expire. Additionally, credit card reward points earned on non-AE or aerie purchases are accounted for in accordance with ASC 605-25. As the points are earned, a current liability is recorded for the estimated cost of the award, and the impact of adjustments is recorded in cost of sales. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Through December 31, 2009, the Company offered its customers the AE All-Access Pass (the “Pass”), a customer loyalty program. On January 1, 2010, the Company replaced the Pass, with the AEREWARD$<sup style="font-size: 85%; vertical-align: text-top">sm</sup> Loyalty Program (the “Program”). Under either loyalty program, customers accumulate points based on purchase activity and earn rewards by reaching certain point thresholds during three-month earning periods. Rewards earned during these periods are valid through the stated expiration date, which is approximately one month from the mailing date. These rewards can be redeemed for a discount on a purchase of merchandise. Rewards not redeemed during the one-month redemption period are forfeited. The Company determined that rewards earned using the Pass and the Program should be accounted for in accordance with ASC 605-25. Accordingly, the portion of the sales revenue attributed to the award credits is deferred and recognized when the awards are redeemed or expire. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Stock Repurchases</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">During Fiscal 2007, the Company’s Board authorized a total of 60.0 million shares of our common stock for repurchase under our share repurchase program with expiration dates extending into Fiscal 2010. The Company repurchased 18.7 million shares during Fiscal 2007 and the authorization related to 11.3 million shares expired in Fiscal 2009. At the beginning of Fiscal 2010, the Company had 30.0 million shares remaining authorized for repurchase. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company repurchased 14.0 million shares as part of its publicly announced repurchase programs during the 39 weeks ended October 30, 2010 for approximately $192.3 million, at a weighted average price of $13.73 per share. As of October 30, 2010, the Company had 16.0 million shares remaining authorized for repurchase. These shares may be repurchased at the Company’s discretion. The authorization relating to the 16.0 million shares remaining under the program expires at the end of Fiscal 2010. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">During the 39 weeks ended October 30, 2010 and October 31, 2009, the Company repurchased approximately 1.0 million and 16,000 shares, respectively, from certain employees at market prices totaling $18.0 million and $0.2 million, respectively. These shares were repurchased for the payment of taxes in connection with the vesting of share-based payments, as permitted under the 2005 Stock Award and Incentive Plan (the “2005 Plan”). </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The aforementioned share repurchases have been recorded as treasury stock. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Segment Information</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In accordance with ASC 280, <i>Segment Reporting </i>(“ASC 280”), the Company has identified three operating segments (American Eagle Brand US and Canadian stores, aerie by American Eagle retail stores and AEO Direct) that reflect the basis used internally to review performance and allocate resources. All of the operating segments have been aggregated and are presented as one reportable segment, as permitted by ASC 280. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Reclassification</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Certain reclassifications have been made to the Consolidated Financial Statements for prior periods in order to conform to the current period presentation. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div>  <!-- Begin Block Tagged Note false false false us-types:textBlockItemType textblock This element may be used to describe all significant accounting policies of the reporting entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 22 -Paragraph 8 false 1 2 false UnKnown UnKnown UnKnown false true