Staples 2015 Annual Report Download - page 114

APPENDIX B
B-11 STAPLES Form 10-K
STAPLES, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition and
Results of Operations (continued)
Cash used in financing activities was $378 million for 2015
compared to $493 million for 2014, a decrease of $115 million.
As a result of cash planning related to our proposed acquisition
of Office Depot, we did not repurchase any shares under our
share repurchase plan in 2015, whereas in 2014 we spent
$189 million to repurchase 15.3 million shares. We paid
quarterly cash dividends of $0.12 per share in both 2015
and 2014 for an aggregate payment of $308 million in 2015
compared with $307 million in 2014.
2014 Compared to 2013
Cash provided by operations was $1.0 billion for 2014
compared to $1.1 billion for 2013. The $65 million decrease
in operating cash flow from 2013 to 2014 was primarily due
to a decline in net income adjusted for non-cash expenses
compared with 2013.
Cash used in investing activities was $375 million for 2014
compared to $479 million for 2013, a decrease of $104 million.
The decline was primarily driven by the fact that in 2014 we
sold three small business units for $59 million in net cash,
whereas in 2013 our disposal of PSD and the termination of
our joint venture in India yielded a combined $47 million net
cash outflow.
Cash used in financing activities was $493 million for 2014
compared to $1.4 billion for 2013, a decrease of $949 million.
The decline was primarily attributable to the repayment of
the $867 million remaining principal balance of our 9.75%
notes upon their maturity in January 2014, and a $132 million
reduction in cash used to repurchase shares compared with
fiscal 2013.
Contractual Obligations and Commercial Commitments
A summary, as of January 30, 2016, of our contractual obligations and balances available under credit agreements is presented
below (amounts in millions):
Payments Due By Period
Contractual Obligations and Commercial
Commitments (1)(2)(6) Available
Credit
Total
Outstanding
Obligations Less than 1 Year 1-3 Years 3-5 Years More than 5 Years
January 2018 Notes (5) $— $500 $— $500 $— $—
January 2023 Notes (5) — 500 — — — 500
May 2018 Revolving Credit Facility 1,000 — — — — —
Other lines of credit 88 2 2 — — —
Other notes and capital leases — 39 15 21 3 —
Total (5) $1,088 $1,041 $17 $521 $3 $500
Interest payments — $181 $36 $57 $44 $44
Commitment fees (7) — $92 $92 $— $— $—
Operating leases (3) — $2,662 $685 $987 $547 $443
Purchase obligations (4) — $614 $460 $105 $47 $2
(1) See Note J - Income Taxes in the Notes to the Consolidated Financial Statements for information related to our unrecognized
tax benefits.
(2) The above table excludes expected future contributions to our pension and post-retirement benefit plans. See Note L - Pension
and Other Post-Retirement Benefit Plans in the Notes to the Consolidated Financial Statements for details about these future
contributions.
(3) The operating lease payments reported above do not include common area maintenance or real estate taxes, which are
expected to approximate 28% to 31% of the related operating lease payments. Utility costs related to leased facilities have
also been excluded from this table because the payments do not represent contractual obligations until the services have
been provided. Future annual minimum payments include restructuring-related obligations as of January 30, 2016.
(4) Many of our purchase commitments may be canceled by us without advance notice or payment, and we have excluded such
commitments, along with intercompany commitments. Contracts that may be terminated by us without cause or penalty but
require advance notice for termination are valued on the basis of an estimate of what we would owe under the contract upon
providing notice of termination.