Discontinued Operations

3 Months Ended

Apr. 30, 2011

Disposal Groups Including Discontinued Operations Disclosure

14. DISCONTINUED OPERATIONS

On June 16, 2009, A&F's Board of Directors approved the closure of the Company's 29 RUEHL branded stores and related direct-to-consumer operations. The Company completed the closure of the RUEHL branded stores and related direct-to-consumer operations during the fourth quarter of Fiscal 2009. Accordingly, the results of operations of RUEHL are reflected in Income from Discontinued Operations, Net of Tax on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the thirteen weeks ended April 30, 2011 and May 1, 2010. Net income for the thirteen weeks ended April 30, 2011, included net income per diluted share of $0.01 from discontinued operations related to the settlement of outstanding lease obligations. Results from discontinued operations for the thirteen weeks ended May 1, 2010, were immaterial.

Costs associated with exit or disposal activities are recorded when the liability is incurred. Below is a roll forward from January 29, 2011 of the liabilities recognized on the Consolidated Balance Sheet as of April 30, 2011 related to the closure of RUEHL branded stores and related direct-to-consumer operations (in millions):

	Thirteen Weeks Ended
	April 30, 2011
Beginning Balance	$	17.2
Interest Accretion / Other, Net⁽¹⁾		(1.3)
Cash Payments		(15.0)
Ending Balance⁽²⁾	$	0.9

⁽¹⁾ Other includes an accrual adjustment related to the settlement of outstanding lease obligations.
⁽²⁾ Ending balance reflects the net present value of obligations due under signed lease termination agreements. As of April 30, 2011, the entire amount is recorded as a current liability in Accrued Expenses on the Consolidated Balance Sheet.