American Eagle Outfitters 2013 Annual Report Download - page 27

Table of Contents
Additionally, we have agreements with two separate financial institutions for an aggregate of $155.0 million USD for the purposes of trade letter
of credit issuances. The availability of any future issuances under the trade letter of credit facilities is subject to acceptance by the respective
financial institutions.
As of May 3, 2014, we had outstanding trade letters of credit of $32.7 million.
Capital Expenditures for Property and Equipment
Capital expenditures for the 13 weeks ended May 3, 2014 were $72.0 million and included $21.0 million related to investments in our stores,
including 6 new AE stores, 5 new Factory stores and 22 remodels. Additionally, we continued to support our infrastructure growth by investing
in information technology initiatives ($9.9 million), other home office projects ($3.8 million), the improvement and expansion of our distribution
centers ($34.0 million) and investments in e-commerce ($3.3 million).
For Fiscal 2014, we expect capital expenditures to be approximately $230 million related to the continued construction of our new distribution
center to support our expansion efforts, stores, information technology upgrades to support growth and investments in e-commerce. New store
growth is primarily related to AEO Factory stores, which are among our most productive format, and new wholly-owned international locations
in Mexico, Asia and the United Kingdom. Additionally, we plan to remodel and refurbish approximately 45 AEO stores.
Stock Repurchases
During the 13 weeks ended May 3, 2014, there were no share repurchases as a part of our publicly announced repurchase programs. During the
13 weeks ended May 4, 2013, as part of our publicly announced share repurchase program, we repurchased 1.6 million shares for approximately
$33.1 million, at a weighted average price of $20.66 per share.
During the 13 weeks ended May 3, 2014 and May 4, 2013, we repurchased approximately 0.5 million and 1.1 million shares, respectively, from
certain employees at market prices totaling $7.3 million and $23.3 million, respectively. These shares were repurchased for the payment of taxes,
not in excess of the minimum statutory withholding requirements, in connection with the vesting of share-based payments, as permitted under
the 2005 Stock Award and Incentive Plan. The aforementioned shares repurchased have been recorded as treasury stock.
Dividends
During the 13 weeks ended May 3, 2014, our Board declared a quarterly cash dividend of $0.125 per share, which was paid on April 16, 2014.
The payment of future dividends is at the discretion of our Board and is based on future earnings, cash flow, financial condition, capital
requirements, changes in U.S. taxation and other relevant factors. It is anticipated that any future dividends paid will be declared on a quarterly
basis.
Critical Accounting Policies
Our critical accounting policies are described in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of
Operations , and in the notes to our Consolidated Financial Statements for the year ended February 1, 2014 contained in our Fiscal 2013 Annual
Report on Form 10-K. Any new accounting policies or updates to existing accounting policies as a result of new accounting pronouncements
have been discussed in the notes to our Consolidated Financial Statements in this Quarterly Report on Form 10-Q. The application of our critical
accounting policies may require our management to make judgments and estimates about the amounts reflected in the Consolidated Financial
Statements. Our management uses historical experience and all available information to make these estimates and judgments, and different
amounts could be reported using different assumptions and estimates.
There were no material changes in our exposure to market risk from February 1, 2014. Our market risk profile as of February 1, 2014 is
disclosed in Item 7A, Quantitative and Qualitative Disclosures About Market Risk , of our Fiscal 2013 Annual Report on Form 10-K.
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ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.