content_image/98852.jpg content_image/98854.jpg content_image/98855.jpg content_image/98849.jpg content_image/98853.jpg content_image/98851.jpg
based on a percentage of sales exceeding a stipulated amount. Store lease terms generally require additional payments covering taxes, common area costs and certain other expenses. A summary of rent expense follows (thousands): 

<img src='content_image/98852.jpg'>

At February 1, 2003, the Company was committed to noncance- lable leases with remaining terms of one to fourteen years. These commitments include store leases with initial terms ranging pri- marily from ten to fifteen years. A summary of minimum rent commitments under noncancelable leases follows (thousands): 

<img src='content_image/98854.jpg'>

6. ACCRUED EXPENSES Accrued expenses consisted of the following (thousands): 

<img src='content_image/98855.jpg'>

7. INCOME TAXES The provision for income taxes consisted of (thousands): 

<img src='content_image/98849.jpg'>

## Abercrombie &Fitch 

A reconciliation between the statutory Federal income tax rate and the effective income tax rate follows: 

<img src='content_image/98853.jpg'>

Income taxes payable included net current deferred tax assets of $6.0 million and $4.9 million at February 1, 2003 and February 2, 2002, respectively. 

Under a tax sharing arrangement with The Limited, who owned 84.2% of the outstanding Common Stock through May 19, 1998, the Company was responsible for and paid to The Limited its proportionate share of income taxes calculated upon its separate taxable income at the estimated annual effective tax rate for periods prior to May 19, 1998. Amounts paid to The Limited totaled $1.4 million, $20 thousand and $829 thousand in 2002, 2001 and 2000, respectively. Amounts paid directly to taxing authorities were $82.3 million, $94.3 million and $111.7 million in 2002, 2001 and 2000, respectively. The amount paid to The Limited during 2002 constituted a final tax sharing pay- ment pursuant to an agreement to terminate the tax sharing agreement entered into with The Limited as of May 19, 1998. As a result, the Company has been indemnified by The Limited for any federal, state or local income taxes asserted with respect to The Limited for all periods prior to May 19, 1998. 

The effect of temporary differences which give rise to de- ferred income tax assets (liabilities) was as follows (thousands): 

<img src='content_image/98851.jpg'>

No valuation allowance has been provided for deferred tax assets because management believes that it is more likely than 

