DSW 2009 Annual Report Download - page 38

Investing Activities
For fiscal 2009, cash used in investing activities amounted to $87.5 million compared to $104.1 million for
fiscal 2008. During the fiscal year ended January 30, 2010, $224.0 million of cash was used to purchase
available-for-sale and held-to-maturity securities while $160.7 million of cash was generated by the sale of
available-for-sale and held-to-maturity securities. During fiscal 2009, we incurred $21.8 million in capital
expenditures. Of this incurred amount, we incurred $10.4 million related to stores, $5.7 million related to supply
chain projects and warehouses and $5.7 million related to information technology and infrastructure.
For fiscal 2008, cash used in investing activities amounted to $104.1 million compared to $82.8 million for
fiscal 2007. During the fiscal year ended January 31, 2009, $207.6 million of cash was used to purchase
available-for-sale and held-to-maturity securities while $185.6 million of cash was generated by the sale of
available-for-sale and held-to-maturity securities. During fiscal 2008, we incurred capital expenditures of
$81.0 million. Of this amount, we incurred $53.8 million for new stores and remodels of existing stores,
$12.1 million related to the warehouses, $5.0 million related to dsw.com and $10.1 million related to information
technology equipment upgrades and new systems, excluding dsw.com.
We expect to spend approximately $40 million for capital expenditures in fiscal 2010. Our future investments
will depend primarily on the number of stores we open and remodel, infrastructure and information technology
programs that we undertake and the timing of these expenditures. In fiscal 2009, we opened nine new DSW stores.
We plan to open approximately ten stores in fiscal 2010. During fiscal 2009, the average investment required to
open a typical new DSW store was approximately $1.4 million, prior to construction and tenant allowances. Of this
amount, gross inventory typically accounted for $0.5 million, fixtures and leasehold improvements typically
accounted for $0.7 million and new store advertising and other new store expenses typically accounted for
$0.2 million.
Financing Activities
For fiscal 2009, net cash used in financing activities of $6.7 million was primarily related to the purchase of our
Class B Common Shares from RVI. Net cash provided by financing activities was less than $0.1 million for fiscal
2008 and $0.6 million in fiscal 2007.
Contractual Obligations
We have the following minimum commitments under contractual obligations, as defined by the SEC. A
“purchase obligation” is defined as an agreement to purchase goods or services that is enforceable and legally
binding on us and that specifies all significant terms, including: fixed or minimum quantities to be purchased, fixed,
minimum or variable price provisions; and the approximate timing of the transaction. Other long-term liabilities are
defined as long-term liabilities that are reflected on our balance sheet in accordance with GAAP. Based on this
definition, the table below includes only those contracts which include fixed or minimum obligations. It does not
include normal purchases, which are made in the ordinary course of business.
The following table provides aggregated information about contractual obligations and other long-term
liabilities as of January 30, 2010 (amounts in thousands):
Contractual Obligations Total
Less Than
1 Year
1-3
Years
3-5
Years
More Than
5 Years
No
Expiration
Date
Payments due by Period
Operating lease obligations(1) . . $874,849 $129,729 $240,748 $210,071 $294,301 $
Construction commitments(2) . . . 653 653
Purchase obligations(3) ....... 2,117 1,246 821 50
Uncertain tax positions(4) ..... 10,932 10,932
Total ..................... $888,551 $131,628 $241,569 $210,121 $305,233 $
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