Kohl's 2015 Annual Report Download - page 21

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Table of Contents
The following table includes cash balances and changes.

  
$ 1,407
$ 971

Operating activities  
$ 2,024
$ 1,884
Investing activities 
(593)
(623)
Financing activities 
(995)
(827)
  
$ 1,234
$ 1,127
(a) See the Free Cash Flow discussion later in this Liquidity and Capital Resources section for additional discussion of this non-GAAP financial
measure.
Operating activities
Cash provided by operations decreased $550 million, or 27%, in 2015 to $1.5 billion.
Merchandise inventory increased $224 million in 2015 to $4.0 billion. Inventory per store increased 5.7% and units per store increased 5% over 2014.
The increases are primarily in national brands.
Accounts payable as a percent of inventory was 31.0% at January 30, 2016, compared to 39.6% at January 31, 2015. Almost half of the decrease was
due to the anniversary of the port strike in 2014. Lower year-over-year January receipts and higher inventory levels also contributed to the decrease.
Cash provided by operations increased $140 million to $2.0 billion in 2014. The increase was primarily due to decreased inventory spending in 2014.
Investing activities
Net cash used in investing activities increased $88 million to $681 million in 2015.
Capital expenditures of $690 million in 2015 were generally consistent with 2014 as higher IT spending in 2015 was offset by the purchase and build
out of a call center in Texas in 2014.
The following table summarizes expected and actual capital expenditures by major category as a percentage of total capital expenditures:

Information technology 45%
45%
45%
45%
Store strategies 30
36
33
31
Base capital 25
20
22
24
Total 100%
100%
100%
100%
We expect total capital expenditures of approximately $825 million in fiscal 2016. The actual amount of our future capital expenditures will depend
on the number and timing of new stores and refreshes; expansion and renovations to distribution centers; the mix of owned, leased or acquired stores; and IT
and corporate spending. We do not anticipate that our capital expenditures will be limited by any restrictive covenants in our financing agreements.
Capital expenditures totaled $682 million in 2014, a $39 million increase over 2013. The increase in capital spending is primarily due to the
expansion of our corporate campus, increased IT spending and the purchase and build out of a call center in Texas, partially offset by decreased new store
spending.
Proceeds from sales of investments in auction rate securities were $82 million in 2014. All of our auction rate securities were sold in 2014. Despite the
non-liquid nature of these investments following market conditions that arose in 2008, we were able to sell substantially all of our investments at par.
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