American Eagle Outfitters 2006 Annual Report Download - page 32

AMERICAN EAGLE OUTFITTERS, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands, except per share
amounts)
Shares
Outstanding
(1)
Common
Stock
Contributed
Capital
Retained
Earnings
Treasury
Stock (2)
Deferred
Compensation
Expense
Accumulated
Other
Comprehensive
Income
Stockholders’
Equity
Balance at January 31, 2004 213,573 $2,174 $155,335 $522,258 $ (45,018) $(1,061) $3,689 $ 637,377
Stock awards 10,659 105 112,189 --(746) - 111,548
Net income -- -213,343 -- -213,343
Other comprehensive income, net
of tax -- ----10,059 10,059
Cash dividends ($0.04 per share) --(8,841) ---(8,841)
Balance at January 29, 2005 224,232 2,279 267,524 726,760 (45,018) (1,807) 13,748 963,486
Stock awards 8,706 137 102,283 --766-103,186
Repurchase of common stock as
part of publicly announced
programs (10,500) -- -(161,008) --(161,008)
Repurchase of common stock from
employees (541) -- -(10,487) - -(10,487)
Net income -- -294,153 - --294,153
Other comprehensive income, net
of tax -- ----8,280 8,280
Cash dividends ($0.18 per share) ---(42,058) ---(42,058)
Balance at January 28, 2006 221,897 2,416 369,807 978,855 (216,513) (1,041) 22,028 1,155,552
Stock awards 4,556 45 83,615 - -1,041 - 84,701
Repurchase of common stock as
part of publicly announced
programs (5,250) -- -(146,485) --(146,485)
Repurchase of common stock from
employees (443) -- -(7,635) - -(7,635)
Cash paid for fractional shares in
three-for-two stock split (4) -(113) --- -(113)
Reissuance of treasury stock 528 -109(2,348) 8,007 --5,768
Net income -- -387,359 - --387,359
Other comprehensive loss, net of
tax --- -- -(314) (314)
Cash dividends ($0.28 per share) ---(61,521) ---(61,521)
Balance at February 3, 2007 221,284 $2,461 $453,418$1,302,345 $(362,626) $- $21,714 $1,417,312
All amounts presented have been restated to reflect the December 18, 2006 three-for-two stock split and theMarch 7,2005 two-for-onestock split.
(1) 250,000 authorized, 248,155 issued and 221,284 outstanding (excluding 1,172 shares of non-vested restricted stock), $0.01 par value common stock
at February 3, 2007; 250,000 authorized, 243,571 issued and 221,897 outstanding (excluding 1,140 shares of non-vested restricted stock) at
January 28, 2006; and 250,000 authorized, 235,154 issued and 224,232 outstanding (excluding 1,430 shares of non-vested restricted stock) at
January 29, 2005. The Company has 5,000 authorized, with none issuedoroutstanding, $0.01 par value preferred stock at February 3,
2007, January 28, 2006 and January 29, 2005.
(2) 25,699 shares,20,534 shares and 9,492 shares at February 3, 2007, January 28, 2006 and January 29, 2005, respectively. During Fiscal 2006, 528
shares were reissued from treasury stock for the issuance of share-based payments.
(3) Amount represents cash dividends paid for two quarters only. Notethat the Companyinitiated quarterly dividend payments during the third quarter
of Fiscal 2004.
See Notes to Consolidated Financial Statements
PAGE 34 ANNUAL REPORT 2006
AMERICAN EAGLE OUTFITTERS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended
(In thousands)
February 3,
2007
January 28,
2006
January 29,
2005
Operating activities:
Net income $387,359 $ 294,153 $213,343
(Income) loss from discontinued operations -(442) 10,889
Income from continuing operations 387,359 293,711 224,232
Adjustments to reconcile income from continuing operations to net cashprovided by operating
activities:
Depreciation andamortization 88,033 78,728 69,443
Stock-based compensation 36,556 19,620 25,166
Deferred income taxes (27,615) 4,752 (17,087)
Tax benefit from share-based payments 25,465 35,371 28,800
Excess tax benefit from share-based payments (19,541) --
Loss on impairmentofassets -1,185 1,399
Proceeds from sale of trading securities 183,968 --
Changes in assets and liabilities:
Merchandise inventory (53,527) (39,137) (44,540)
Accounts and note receivable, including related party 2,778 4,638 3,878
Prepaid expenses and other (4,204) (3,642) 1,918
Accounts payable 32,345 29,366 23,166
Unredeemed stored value cards and gift certificates 11,623 10,137 7,373
Deferred lease credits 7,791 2,784 3,359
Accrued liabilities 78,237 42,906 41,576
Total adjustments 361,909 186,708 144,451
Net cash provided by operating activities from continuing operations 749,268 480,419 368,683
Investing activities:
Capital expenditures (225,939) (81,545) (97,288)
Proceeds from sale of assets 12,345 - -
Purchase of investments (1,353,339) (1,187,556) (508,768)
Sale of investments 915,952 876,111 330,390
Other investing activities (140) (74) (14)
Net cash used for investing activities from continuing operations (651,121) (393,064) (275,680)
Financing activities:
Payments on note payable and capital leases (3,020) (745) (2,655)
Proceeds from issuance of note payable 2,025 - -
Retirement of note payable and termination of swap agreement --(16,915)
Repurchase of common stock as part of publicly announced programs (146,485) (161,008) -
Repurchase of common stock from employees (7,635) (10,487) -
Cash paid for fractional shares in connection with three-for-two stock split (113) - -
Net proceeds from stock options exercised 28,447 48,198 57,533
Excess tax benefit from share-based payments 19,541 --
Cash dividends paid (61,521) (42,058) (8,841)
Net cash (used for) provided by financing activities from continuing operations (168,761) (166,100) 29,122
Effect of exchange rates on cash (178) 4,680 1,903
Cash flows of discontinued operations
Net cash (used for) provided by operating activities -(15,214) 3,315
Net cash provided by investing activities --5,371
Net cash provided by financing activities ---
Effect of exchange rates on cash - 436 762
Net cash (used for) provided by discontinued operations -(14,778) 9,448
Net (decrease) increase in cash and cashequivalents (70,792) (88,843) 133,476
Cash and cash equivalents -beginning of period 130,529 219,372 85,896
Cash and cash equivalents -endofperiod $ 59,737 $130,529 $ 219,372
See Notes to Consolidated Financial Statements
AMERICAN EAGLE OUTFITTERS PAGE 35