American Eagle Outfitters 2014 Annual Report Download - page 25

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Table of Contents
Asset impairment costs of $0.14 per diluted share for Fiscal 2013 consist of:
We ended Fiscal 2014 with $410.7 million in cash and short-term investments, a decrease of $18.2 million from last year. During the
year, we generated $338.4 million of cash from operations.
The cash from operations was offset by $245.0 million of capital expenditures and
dividend payments of $97.2 million. Merchandise inventory at the end of Fiscal 2014 was $279.0 million, a decrease of 5% on a cost per square
foot basis, reflecting improved inventory control and turns.
The following table shows, for the periods indicated, the percentage relationship to total net revenue of the listed items included in our
Consolidated Statements of Operations.
25
•
$
44.5 million of pre
-
tax asset impairments for 69 AEO and aerie brand retail stores and the Warrendale Distribution Center
(2)
Restructuring charges of $0.06 per diluted share include:
•
$
17.8 million of severance and related employee costs and corporate charges
(3)
Asset write
-
offs and corporate charges of $0.16 per diluted share consist of:
•
$
24.1 million of charges relating to fabric and product liabilities and the discontinuation of the AE Performance line
•
$
14.3 million of corporate and store asset write
-
offs
•
$
6.3 million for the write down in value of the Company
’
s corporate jet
•
$
4.7 million of employee severance and related costs.
(4)
Tax related items of $0.01 per diluted share were:
•
$
2.8 million from recording an international valuation allowance, net of tax benefits from changes in tax reserves.
For the Fiscal Years Ended
January 31,
2015
February 1,
2014
February 2,
2013
Total net revenue
100.0
%
100.0
%
100.0
%
Cost of sales, including certain buying, occupancy and warehousing
expenses
64.8
66.3
60.0
Gross profit
35.2
33.7
40.0
Selling, general and administrative expenses
24.6
24.1
24.0
Restructuring charges
0.6
—
—
Loss on impairment of assets
1.0
1.3
1.0
Depreciation and amortization expense
4.3
4.0
3.6
Operating income
4.7
4.3
11.4
Other income, net
0.1
—
0.2
Income before income taxes
4.8
4.3
11.6
Provision for income taxes
2.2
1.8
4.0
Income from continuing operations
2.6
2.5
7.6
Loss from discontinued operations, net of tax
(0.2
)
—
(
0.9
)
Net income
2.4
%
2.5
%
6.7
%