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American

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Cost of Capital

Rm 8

Rf 0.75

beta 1.05

After-tax cost of debt 0.0279Cost of Equity 0.085

Debt 0

Equity 1879998

WACC 0.085

Terminal Growth Rate 4.20%

projection year 1 2 3

2010 2011 2012 2013 2014

FCFE 4,941,986 5,666,040 5,634,372

Terminal Value

PV of Cash Flows 4554826 4813048 4411196

PV of Terminal Value

Total Value of Equity 106514521

No. of Shares Outstanding 198000000

Value/ Share 537.95212

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Assumptions

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Income Statement

Growth Rate 0%

COGS/Revenue 60%

OpEx/Revenue 20%

R&D/Rev 0%Tax Rate 40%

NWC

CA (Adj.)/Rev 0.16

CL (Adj.)/Rev 0.12

CAPEX

Depreciation Rate 19%

Equity

Dividend 0

Share Repurchase 0

Proceed from Share Issue 0

Cost of Capital

Debt -

Equity 1,879,998

Cost of Equity 8.5%

Cost of Debt 4.65%

After-tax Cost of Debt 2.8%

Terminal Growth Rate 4.20%

other LT Liabilities/Rev 0.0475441

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2009 2010 2011 2012 2013 2014 2015

Revenue Growth Rate 0.928% 0.024% 0.024% 0.024%

Principal Repayment - - -

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2016 2017

0.024% 0.024%

- -

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Projected income statements

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2010 2011 2012 2013 2014

Revenue 2,967,559 2,968,276 2,968,994

COGS 0 0 (1,780,848) (1,781,279) (1,781,709)

Gross Profit 0 0 4,748,407 4,749,555 4,750,703

OPEX (578,828) (578,968) (579,108)

R&D - - -

Depreciation (123,270) (123,270) (146,898)

EBIT 4,046,310 4,047,318 4,024,698

Interest - - -

EBT 4,046,310 4,047,318 4,024,698

Tax (1,618,524) (1,618,927) (1,609,879)

NI 5,664,834 5,666,245 5,634,577

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2015 2016 2017

2,969,711 2,970,429 2,971,147

(1,782,140) (1,782,571) (1,783,002)

4,751,851 4,753,000 4,754,149

(579,248) (579,388) (579,528)

- - -

(175,054) (208,608) (248,592)

3,997,550 3,965,005 3,926,029

- - -

3,997,550 3,965,005 3,926,029

(1,599,020) (1,586,002) (1,570,411)

5,596,569 5,551,006 5,496,440

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2010 2011 2012 2013

Operating

Net Income 0 0 5,664,834 5,666,245

Add back: Interest 0 0 - -

Add back: Depreciation 0 0 123,270 123,270Less: Change In NWC 0 (846,118) (205)

Cash Flow before Investing and Financing 0 0 4,941,986 5,789,310

Less CAPEX 0 - (123,270)

Cash Flow before Financing 0 0 4,941,986 5,666,040

Less: Interest 0 - -

Free Cash Flow to Firm 0 0 4,941,986 5,666,040

Less: Principal Repayment 0 - -

Free Cash Flow to Equity 0 0 4,941,986 5,666,040

Less: Dividend 0 - -

Less: Share Repurchase 0 - -

Add: Proceed from new issue 0 - -

Total Cash Flow for period 0 0 4,941,986 5,666,040

Beginning Balance of Cash 0 - 4,941,986

Closing Balance of Cash 0 4,941,986 10,608,026

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2014 2015 2016 2017

5,634,577 5,596,569 5,551,006 5,496,440

- - - -

146,898 175,054 208,608 248,592(205) (205) (205) (205)

5,781,270 5,771,419 5,759,409 5,744,828

(146,898) (175,054) (208,608) (248,592)

5,634,372 5,596,365 5,550,802 5,496,235

- - - -

5,634,372 5,596,365 5,550,802 5,496,235

- - - -

5,634,372 5,596,365 5,550,802 5,496,235

- - - -

- - - -

- - - -

5,634,372 5,596,365 5,550,802 5,496,235

10,608,026 16,242,398 21,838,763 27,389,565

16,242,398 21,838,763 27,389,565 32,885,800

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2010 2011 2012 2013

Assets

Current Assets

Cash 4941986 10608026

Current Assets 479730 479845.611Total Current Assets 479730 11087871

Total Fixed Asset 519850 519850

Total Asset 999,580 11,607,721

Liabilities + Equity

Total Liabilities

Current Liabilities 366,388 366,477

ST Debt 0 0

Current Portion of LT Debt 0 0

Total Current Liabilities 0 0

LT Liabilities

LT Debt 0 0

Other LT Liabilities 141090 141124.101

Total LT Liabilities 141090 141124.101

Total Liabilities 141090 141124.101

Equity

Beginning Balance 1879998 1879998Beg. Accumulated Retained Earnings -

Net Income for the period 5,664,834 5,666,245

Less: Dividend

Closing Bal. of Acc. Ret Earnings 5,666,245

Proceed fron new Share 0 0

Share Repurchase 0 0

Closing Balance 1,879,998 7,546,243

Total Liability + Equity 2,021,088 7,687,367

Chceck Balance 3,920,355

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2014 2015 2016 2017

16242398 21838763 27389565 32885800

479961.5884 480077.5935 480193.6266 480309.687716722360 22318840 27869758 33366110

519850 519850 519850 519850

17242210 22838691 28389608 33885960

366,565 366,654 366,743 366,831

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

141158.2102 141192.3277 141226.4534 141260.5873

141158.2102 141192.3277 141226.4534 141260.5873

141158.2102 141192.3277 141226.4534 141260.5873

7,546,243 13,180,819 18,777,389 24,328,3955,634,577 11,231,146 16,782,153 22,278,593

5,634,577 5,596,569 5,551,006 5,496,440

- - - -

11,269,154 16,827,716 22,333,159 27,775,033

0 0 0 0

0 0 0 0

13,180,819 18,777,389 24,328,395 29,824,835

13,321,978 18,918,581 24,469,622 29,966,096

3,920,232 3,920,109 3,919,987 3,919,864

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Workings

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2010 2011 2012 2013 2014

Revenue - - 2,967,559 2,968,276 2,968,994

CA (Adj.)/ Rev 0.162 0.162 0.162

Current Assets 479,730 479,846 479,962

CL (Adj.)/ Rev 0.123 0.123 0.123

CL (366,388) (366,477) (366,565)

NWC - - 846,118 846,322 846,527

Change in NWC - 846,118 205 205

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2015 2016 2017

2,969,711 2,970,429 2,971,147

0.162 0.162 0.162

480,078 480,194 480,310

0.123 0.123 0.123

(366,654) (366,743) (366,831)

846,731 846,936 847,141

205 205 205

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2010 2011 2012 2013 2014

Revenue 2967559 2968276 2968994

Net Assets

Beginning Balance of Total Assets 0 643120 643120 766,390CAPEX 123,270 146,898

Ending Balance of Total Assets 0 0 643120 766389.845 913287.404

Depreciation Rate 19% 19% 19% 19% 19%

Depreciation for the Period 0 0 123,270 123,270 146,898

Beginning Balance of Total Depreciation - 123,270 246,540

Ending Balance of Total Depreciation 0 0 123,270 246,540 393,437

Ending Balance of Net Assets 0 0 519,850 519,850 519,850

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2015 2016 2017

2969711 2970429 2971147

913,287 1,088,342 1,296,949175,054 208,608 248,592

1088341.51 1296949.06 1545541.41

19% 19% 19%

175,054 208,608 248,592

393,437 568,491 777,099

568,491 777,099 1,025,691

519,850 519,850 519,850

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2009 2010 2011 2012 2013

Short-term Debt 0 0

Interest Rate 5% 5%

Interest Payment 0

Long-term Debt

Beginning Balance -

Interest Rate 0.047

Interest Payment -

Principal Payment -

Closing Balance -

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2014 2015 2016 2017

0 0 0 0

5% 5% 5% 5%

0 0 0 0

- - - -

0.047 0.047 0.047 0.047

- - - -

- - - -

- - - -

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Past statements

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2009 2010 2011 Average

Revenue 2,948,679 2,940,269 2,967,559

COGS 1,751,493 1,766,839 1,796,600

OpEx - Depr - R&D 567,185 587,518 572,696

R&D Spending - - -

Revenue Growth Rate 0% 1% 0.02%

COGS/Rev 59% 60% 61% 60%

OpEx-R&D-Depr/Rev 19% 20% 19% 20%

R&D/Rev 0% 0% 0% 0%

NWC

Current Assets 925,359 1,167,030 1,174,410

Cash 473,342 693,960 667,593

Current Assets - Cash 452,017 473,070 506,817

Current Liabilities 401,763 408955 387837

Short-term debt 75,000 30,000 -

Current Portion of LT Debt - - -

C.L. - ST Debt - CP of LT Debt 326,763 378,955 387,837

(Current Assets - Cash)/ Revenue 0.15 0.16 0.17 0.16

(C.L. - ST Debt - CP of LT Debt)/Rev 0.11 0.13 0.13 0.12

Total Fixed Assets 740,240 713,142 643120

Total Depreciation & Amortization 123,602 137,760 140,501Depreciation for the period 123218 137045 139169

Depreciation Rate 0.17 0.19 0.22 19%

Total LT Debt 0 0 0

LT + CLT + ST 75,000 30,000 -

Interest Paid 1,947 1,879 191

Interest Rate 3% 1% 2%

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(In thousands, except per share amounts)

Net sales

Cost of sales, including certain buying, occupancy and warehousing

expenses .

Gross profit

Selling, general and administrative expensesDepreciation and amortization expense

Operating income

Realized loss on sale of investment securities

Other income (expense), net

Total other-than-temporary impairment losses

Portion of loss recognized in other comprehensive income, before

tax

Net impairment loss recognized in earnings.

Income before income taxes

Provision for income taxes

Income from continuing operations

Loss from discontinued operations, net of tax

Net income

Basic income per common share:


Loss from discontinued operations

Basic income per common share

Diluted income per common share:



Diluted income per common share

Weighted average common shares outstanding basic

Weighted average common shares outstanding diluted

Net income .

Other comprehensive income (loss):

Temporary (impairment) recovery related to investment securities, net

of tax

Reclassification adjustment for realized losses in net income related to

investment securities, net of tax

Foreign currency translation gain (loss)Other comprehensive income (loss)

Comprehensive income

interst paid

depreciation expense

R&D expense

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2011 2010 2009

2,967,559 2,940,269 2,948,679

1,796,600 1,766,839 1,751,493

1,170,959 1,173,430 1,197,186

713,197 725,278 690,787140,501 137,760 123,602

317,261 310,392 382,797

-24,426 -2,749 -1,117

3,497 -2,328 18,908

-5,089 -4,413 -22,889

3,841 3,473 ___

-1,248 -940 -22,889

295,084 304,375 377,699

113,150 90,977 147,715

181,934 213,398 229,984

-41,287 -44,376 -50,923

140,647 169,022 179,061

0.91 1.04 1.12

-0.21 -0.22 -0.25

0.70 0.82 0.87

0.90 1.02 1.11

-0.20 -0.21 -0.25

0.70 0.81 0.86

199,979 206,171 205,169

201,818 209,512 207,582

140,647 169,022 179,061

-1,140 14,506 -23,173

7,541 940 948

4,833 15,781 -27,64911,234 31,227 -49,874

151,881 200,249 129,187

191 1879 1947

139169 137045 123218

0 0 0

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Operating activities:

Net income



Adjustments to reconcile net income to net cash provided by operating activities

Depreciation and amortizationShare-based compensation

Provision for deferred income taxes

Tax benefit from share-based payments

Excess tax benefit from share-based payments

Foreign currency transaction loss (gain)

Net impairment loss recognized in earnings

Realized loss on sale of investment securities

Changes in assets and liabilities:

Merchandise inventory

Accounts receivable

Prepaid expenses and other

Other assets, net

Accounts payable

Unredeemed gift cards and gift certificates

Deferred lease credits

Accrued compensation and payroll taxes

Accrued income and other taxes

Accrued liabilities

Total adjustments

Net cash provided by operating activities from continuing operations

Investing activities:Capital expenditures

Purchase of available-for-sale securities

Sale of available-for-sale securities

Other investing activities

Net cash provided by (used for) investing activities from continuing operations

Financing activities:

Payments on capital leases

Proceeds from issuance of note payable

Repayment of note payable

Repurchase of common stock as part of publicly announced programs

Repurchase of common stock from employees

Net proceeds from stock options exercised

Excess tax benefit from share-based payments

Cash used to net settle equity awards

Cash dividends paid

Net cash used for financing activities from continuing operations

Effect of exchange rates on cash

Cash flows of discontinued operations

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Net cash used for operating activities

Net cash used for investing activities

Net cash used for financing activities

Effect of exchange rates on cash

Net cash used for discontinued operations

Net (decrease) increase in cash and cash equivalents

Cash and cash equivalents beginning of periodCash and cash equivalents end of period

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2011 2010 2009

140,647 169,022 179,061

41,287 44,376 50,923

181,934 213,398 229,984

145,548 139,832 126,36225,457 34,615 18,731

11,885 -36,027 24,473

15,648 7,995 1,121

-12,499 -2,812 -693

117 6,477 -1,141

1,298 940 22,889

24,426 2,749 1,117

18,713 -33,699 -5,634

-3,790 6,656 -10,019

-9,045 12,916 -23,184

-1,380 1,146 390

5,232 8,358 -3,467

1,713 -3,591 -11,495

-7,451 4,667 16,662

-19,618 25,841 -18,223

11,999 12,858 -20,791

12,457 -1,993 -1,930

220,660 186,928 115,128

402,594 400,326 345,112

-84,259 -127,080 -243,564

-62,797 _______ -48,655

177,472 80,353 393,559

-2,801 -2003 -2,297

27,615 -48,730 99,043

-2590 -2,015 -2,177

____ ____ 75,000

-30,000 -45,000 ________

216,070 ____ ____

-18,041 -247 -3432

7,272 9044 3799

12,499 2812 693

-6,434 -1414 _____

-183,166 -82,985 -82,394

-436,530 -119,805 -8,511

1,394 3030 -14,790

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-21,434 -13,864 -41,802

-6 -339 -21,771

______ ________ _______

_____ _______ ________

-21,440 -14,203 -63,573

-26,367 220,618 357,281

693,960 473,342 116,061667,593 693,960 473,342

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Current assets:

(values in thousands except per share value)

Cash and cash equivalents

Short-term investments .

Merchandise inventory

Accounts receivable

Prepaid expenses and otherDeferred income taxes

Total current assets

Property and equipment, at cost, net of accumulated depreciation and

amortization

Goodwill

Long-term investments

Non-current deferred income taxes

Other assets, net

Total assets

Current liabilities:

Accounts payable

Note payable

Accrued compensation and payroll taxes

Accrued rent

Accrued income and other taxes

Unredeemed gift cards and gift certificates

Current portion of deferred lease credits

Other liabilities and accrued expenses

Total current liabilitiesNon-current liabilities:

Deferred lease credits

Non-current accrued income taxes

Other non-current liabilities

Total non-current liabilities

Commitments and contingencies

Stockholders equity:

Preferred stock, $0.01 par value; 5,000 shares authorized; none issued and

outstanding

Common stock, $0.01 par value; 600,000 shares authorized; 249,566 and

249,561 shares issued; 194,366 and 206,832 shares outstanding, respectively . .Contributed capital

Accumulated other comprehensive income

Retained earnings

Treasury stock, 55,200 and 41,737 shares, respectively, at cost

Total stockholders equity

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short term debt

long term debt

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2011 2010 2009

667,593 693,960 473,342

67102 4675 10,511

301208 326,454 294,928

36721 34746 41,471

53727 47,039 59,66048059 60156 45,447

1,174,410 1,167,030 925,359

643120 713,142 740,240

11472 11210 10,706

5915 197,773 251,007

19616 27305 15,001

25465 21,688 21,363

1879998 2138148 1,963,676

167723 158,526 152,068

30000 75,000

34954 55144 29,417

70390 68866 64,695

32468 20585 6,259

41001 39389 42,299

16203 17388 13,726

25098 19057 18,299

387837 408955 401,763

78606 89591 88,314

38671 38618 39,898

23813 22467 24,670

141090 150676 152,882

2496 2486 2485546,597 554,399 513,574

28,072 16,838 -14,389

1,711,929 1,764,049 -1,694,161

-938,023 -759,255 -786,800

1,351,071 1,578,517 1,409,031

1,879,998 2,138,148 1,963,675

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0 30,000 75,000

0 0 0

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