Dillard's 2015 Annual Report Download - page 34

28
investment activity in the accompanying Consolidated Statements of Cash Flows. During fiscal 2015, payments of $7.3 million
were made from restricted cash for like-kind property.
During fiscal 2014, the Company received a final distribution of $1.1 million from its investment in a property located in
Toledo, Ohio, resulting in a loss of $0.3 million that was recorded in gain on disposal of assets.
During fiscal 2013, the Company received proceeds of $15.7 million from the sale of its investment in Acumen, resulting
in a gain of $11.7 million that was recorded in gain on disposal of assets.
Financing Activities
Our primary source of cash inflows from financing activities is generally our $1.0 billion senior unsecured revolving
credit facility. Financing cash outflows generally include the repayment of borrowings under the revolving credit facility, the
repayment of mortgage notes or long-term debt, capital lease obligations, the payment of dividends and the purchase of
treasury stock.
Cash used in financing activities increased to $518.2 million in fiscal 2015 from $301.6 million in fiscal 2014. This
increase in cash used of $216.6 million was primarily due to an increase in stock repurchases.
Cash used in financing activities decreased to $301.6 million in fiscal 2014 from $312.1 million in fiscal 2013. This
increase in cash flow of $10.5 million was primarily due to a reduction in treasury stock purchases.
Stock Repurchase. In November 2014, the Company's Board of Directors authorized the Company to repurchase up to
$500 million of the Company's Class A Common Stock under an open-ended plan ("November 2014 Stock Plan"). During
fiscal 2015, the Company repurchased 5.3 million shares for $500.0 million at an average price of $94.22 per share, which
completed the authorization under the November 2014 Stock Plan.
In November 2013, the Company's Board of Directors authorized the Company to repurchase up to $250 million of the
Company's Class A Common Stock under an open-ended plan ("November 2013 Stock Plan"). During fiscal 2014, the
Company repurchased 2.3 million shares for $250.0 million at an average price of $107.44 per share, which completed the
authorization under the November 2013 Stock Plan.
In March 2013, the Company's Board of Directors authorized the Company to repurchase up to $250 million of the
Company's Class A Common Stock under an open-ended plan ("March 2013 Stock Plan"). During fiscal 2013, the Company
repurchased 2.7 million shares for $209.6 million at an average price of $77.93 per share. During fiscal 2014, the Company
repurchased 0.5 million shares for $40.4 million at an average price of $89.04 per share, which completed the authorization
under the March 2013 Stock Plan.
The ultimate disposition of the repurchased stock has not been determined.
Revolving Credit Agreement. In May 2015, the Company entered into a new $1.0 billion senior unsecured revolving
credit facility ("credit agreement"), replacing the Company's prior secured credit facility. The credit agreement expires May 13,
2020 and is available to the Company for working capital needs and general corporate purposes including, among other uses,
working capital financing, the issuance of letters of credit, capital expenditures and, subject to certain restrictions, the
repayment of existing indebtedness and share repurchases.
The Company pays a variable rate of interest on borrowings under the credit agreement and a commitment fee to the
participating banks based on the Company's debt rating. The rate of interest on borrowings is LIBOR plus 1.375%, and the
commitment fee for unused borrowings is 0.20% per annum.
No borrowings were outstanding at January 30, 2016. Letters of credit totaling $25.8 million were issued under this credit
agreement leaving unutilized availability under the facility of approximately $974 million at January 30, 2016. The Company
had weighted-average borrowings of $41.3 million and $13.1 million and $45.5 million during fiscal 2015, 2014 and 2013,
respectively.
Peak borrowings under the credit facility were $310 million during fiscal 2015.
To be in compliance with the financial covenants of the credit agreement, the Company's total leverage ratio cannot exceed
4.0 to 1.0 and the coverage ratio cannot be less than 2.5 to 1.0, as defined in the credit agreement. At January 30, 2016, the
Company was in compliance with all financial covenants related to the credit agreement.
Long-term Debt. At January 30, 2016, the Company had $614.8 million of long-term debt, comprised of unsecured
notes. The unsecured notes bear interest at rates ranging from 6.625% to 7.875% with due dates from fiscal 2017 through fiscal
2028.