Abercrombie & Fitch 2011 Annual Report Download - page 50

Operating Activities
Net cash provided by operating activities was $365.2 million for the fifty-two weeks ended
January 28, 2012 compared to $391.8 million for fifty-two weeks ended January 29, 2011. The decrease in
cash provided by operating activities was primarily driven by timing in tax payments, partially offset by an
increase in net income adjusted for non-cash items.
Investing Activities
Cash outflows for investing activities for the fifty-two weeks ended January 28, 2012 and January 29,
2011 were used primarily for capital expenditures related to new store construction and information
technology investments, as well as the acquisition of intangible assets. Cash outflows for capital
expenditures were higher in Fiscal 2011 than in Fiscal 2010, due to an increase in the number of new
international retail locations, including flashship locations, as well as Home Office, Distribution Centers
and Information Technology infrastructure projects. Cash inflows from investing activities were less in
Fiscal 2011 due to a reduction in proceeds from sales of marketable securities.
Financing Activities
For the fifty-two week periods ended January 28, 2012 and January 29, 2011, cash outflows for
financing activities consisted primarily of the repurchase of A&F’s Common Stock, the payment of
dividends and repayments of outstanding borrowings denominated in Japanese Yen under the Company’s
Prior Credit Agreement. These outflows were partially offset by cash inflows from the receipt of proceeds
associated with the exercise of share-based compensation awards.
During the fifty-two weeks ended January 28, 2012, A&F repurchased approximately 3.5 million
shares of A&F’s Common Stock in the open market with a market value of approximately $196.6 million.
During the fifty-two weeks ended January 29, 2011, A&F repurchased approximately 1.6 million shares of
A&F’s Common Stock in the open market with a market value of $76.2 million. Both the Fiscal 2011 and
Fiscal 2010 repurchases were pursuant to the A&F Board of Directors’ authorization.
As of January 28, 2012, A&F had approximately 6.2 million remaining shares available for repurchase
as part of the November 20, 2007 A&F Board of Directors’ authorization to repurchase 10.0 million shares
of A&F’s Common Stock.
Future Cash Requirements and Sources of Cash
Over the next twelve months, the Company’s primary cash requirements will be to fund operating
activities, including the acquisition of inventory, and obligations related to compensation, rent, taxes and
other operating activities, as well as increasing capital expenditures and paying of quarterly dividend
payments to stockholders subject to the A&F Board of Directors’ approval. The Company also has
availability under the Amended and Restated Credit Agreement as a source of additional funding. In
addition, on February 24, 2012, the Company entered into a $300 million Term Loan Agreement to take
advantage of the current lending market and to increase its flexibility and liquidity.
Subject to suitable market conditions, A&F expects to continue to repurchase shares of its Common
Stock. The Company anticipates funding these cash requirements with available cash and as appropriate,
the Amended and Restated Credit Agreement and the Term Loan Agreement.
The Company is not dependent on foreign cash to fund its U.S. operations or dividends to
shareholders and does not expect the need to repatriate foreign cash to meet cash needs.
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