American Eagle Outfitters 2011 Annual Report Download - page 32

Table of Contents
ASC 718 requires that cash flows resulting from the benefits of tax deductions in excess of recognized compensation cost for share-based payments be
classified as financing cash flows. Accordingly, for Fiscal 2011, for Fiscal 2010 and Fiscal 2009, the excess tax benefits from share-based payments of $0.4
million, $12.5 million and $2.8 million, respectively, are classified as financing cash flows.
Capital Expenditures for Property and Equipment
Fiscal 2011 capital expenditures were $100.1 million, compared to $84.3 million in Fiscal 2010. Fiscal 2011 expenditures included $70.9 million
related to investments in our AE stores, including 33 new AE, aerie and 77kids stores in the United States and Canada, 106 remodeled and refurbished stores,
and fixtures and visual investments. Additionally, we continued to support our infrastructure growth by investing in information technology ($12.5 million),
the expansion and improvement of our distribution centers ($9.8 million) and other home office projects ($6.9 million).
For Fiscal 2012, we expect capital expenditures to be approximately $100.0 million related to stores, information technology and investments in e-
commerce. New store growth is primarily related to outlet centers, which are among our most productive format. Additionally, we plan to remodel and
refurbish approximately 100 AE stores with average operating results above the chain average.
Credit Facilities
During Fiscal 2011, we had borrowing agreements with four separate financial institutions under which an aggregate of $245.0 million United States
dollars ("USD") and $25.0 million Canadian dollars ("CAD") was available. Of this amount, $135.0 million USD was available for letter of credit issuances,
$50.0 million USD and $25.0 million CAD was available for demand line borrowings and the remaining $60.0 million USD was available for either letters of
credit or demand line borrowings at the Company's discretion. These lines were provided at the discretion of the respective financial institutions and were
subject to their periodic review.
As of January 28, 2012, we had outstanding letters of credit of $25.2 million USD and no demand line borrowings.
On March 2, 2012, we entered into a five-year, $150.0 million syndicated, unsecured, revolving credit agreement (the "Credit Agreement"). The
primary purpose of the Credit Agreement is to provide additional access to capital for general corporate purposes and the issuance of letters of credit. The
Credit Agreement replaced the uncommitted demand lines in the aggregate amount of $110.0 million USD and $25.0 million CAD. The $135.0 million USD
of credit lines for letter of credit issuances continue to remain in place as of March 15, 2012.
The Credit Agreement will mature on March 2, 2017. Stand-by letters of credit totaling approximately $8.5 million were outstanding under the Credit
Agreement on March 15, 2012. No borrowings were outstanding under the Credit Agreement on March 15, 2012.
Stock Repurchases
During Fiscal 2011, we repurchased 1.4 million shares as part of our publicly announced share repurchase program for approximately $15.2 million, at
a weighted average price of $11.10 per share. During Fiscal 2010, we repurchased 15.5 million shares as part of our publicly announced repurchase programs
for approximately $216.1 million, at a weighted average price of $13.94 per share. We did not repurchase any common stock as part of our publicly
announced repurchase program during Fiscal 2009. As of January 28, 2012, we had 13.1 million shares remaining authorized for repurchase. These shares
may be repurchased at our discretion through February 2, 2013.
During Fiscal 2011, Fiscal 2010 and Fiscal 2009, we repurchased approximately 0.1 million, 1.0 million and 18,000 shares, respectively, from certain
employees at market prices totaling $2.2 million, $18.0 million and $0.2 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, as amended.
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