Abercrombie & Fitch 2015 Annual Report Download - page 34

Table of Contents
34
Investing Activities
Cash outflows for investing activities in Fiscal 2015, Fiscal 2014 and Fiscal 2013 were used primarily for new store construction,
store remodels, information technology, and direct-to-consumer and omnichannel capabilities. Fiscal 2015 cash investing activities
also included proceeds from the sale of a Company-owned aircraft.
Financing Activities
For Fiscal 2015, cash outflows for financing activities consisted primarily of the payment of dividends of $55.1 million and the
repurchase of A&F's Common Stock of $50.0 million. For Fiscal 2014, cash outflows for financing activities consisted primarily
of the repurchase of A&F's Common Stock of $285.0 million, the payment of dividends of $57.4 million and the repayment of
borrowings of $195.8 million. For Fiscal 2013, cash outflows for financing activities consisted primarily of the repurchase of
A&F’s Common Stock of $115.8 million, the repayment of borrowings of $15.0 million and the payment of dividends of $61.9
million. For Fiscal 2014 and Fiscal 2013, cash inflows from financing activities consisted primarily of proceeds from borrowings
of $357.0 million and $150.0 million, respectively.
During Fiscal 2015, A&F repurchased approximately 2.5 million shares of A&F’s Common Stock in the open market with a market
value of approximately $50.0 million. During Fiscal 2014, A&F repurchased approximately 7.3 million shares of A&F’s Common
Stock, of which approximately 3.5 million shares with a market value of approximately $135.0 million were purchased in the open
market and approximately 3.8 million shares with an aggregate cost of $150.0 million were purchased pursuant to an accelerated
share repurchase agreement. During Fiscal 2013, A&F repurchased approximately 2.4 million shares of A&F's Common Stock
in the open market with a market value of $115.8 million. Repurchase of A&F's Common Stock were made pursuant to the A&F
Board of Directors' authorizations.
As of January 30, 2016, A&F had approximately 6.5 million remaining shares available for repurchase as part of the A&F Board
of Directors’ previously approved authorizations.
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, leases, taxes and other operating activities, as well as to fund capital
expenditures and quarterly dividends to stockholders subject to approval by A&F's Board of Directors. The Company has
availability under the ABL Facility as a source of additional funding.
The Company may continue to repurchase shares of its Common Stock and would anticipate funding these cash requirements
utilizing free cash flow generated from operations or proceeds from its existing credit facilities.
As of January 30, 2016, $239.4 million of the Company's $588.6 million of cash and equivalents was held by foreign affiliates.
The Company is not dependent on dividends from its foreign affiliates to fund its U.S. operations or make distributions to A&F’s
stockholders. Unremitted earnings from foreign affiliates generally would become subject to U.S. income tax if remitted as
dividends or lent to A&F or a U.S. affiliate. As of January 30, 2016, a provision for U.S. income tax has not been recorded on
$164.5 million of the cash and equivalents held by foreign affiliates.
OFF-BALANCE SHEET ARRANGEMENTS
The Company uses in the ordinary course of business stand-by letters of credit under the existing ABL Facility. The Company
had $2.3 million in stand-by letters of credit outstanding as of January 30, 2016. The Company has no other off-balance sheet
arrangements.