Banana Republic 2015 Annual Report Download - page 35

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26
Free Cash Flow
Free cash flow is a non-GAAP financial measure. We believe free cash flow is an important metric because it
represents a measure of how much cash a company has available for discretionary and non-discretionary items
after the deduction of capital expenditures, as we require regular capital expenditures to build and maintain stores
and purchase new equipment to improve our business. We use this metric internally, as we believe our sustained
ability to generate free cash flow is an important driver of value creation. However, this non-GAAP financial
measure is not intended to supersede or replace our GAAP result.
The following table reconciles free cash flow, a non-GAAP financial measure, from a GAAP financial measure.
Fiscal Year
($ in millions) 2015 2014 2013
Net cash provided by operating activities $ 1,594 $ 2,129 $ 1,705
Less: Purchases of property and equipment (726) (714) (670)
Free cash flow $ 868 $ 1,415 $ 1,035
Debt and Credit Facilities
Certain financial information about the Company's debt and credit facilities is set forth under the headings "Debt"
and "Credit Facilities" in Notes 4 and 5, respectively, of Notes to Consolidated Financial Statements included in
Part II, Item 8 of this Form 10-K.
Dividend Policy
In determining whether and at what level to declare a dividend, we consider a number of factors including
sustainability, operating performance, liquidity, and market conditions.
We increased our annual dividend from $0.88 per share for fiscal 2014 to $0.92 per share for fiscal 2015. We plan
to pay an annual dividend of $0.92 per share in fiscal 2016.
Share Repurchases
Certain financial information about the Company's share repurchases is set forth under the heading "Share
Repurchases" in Note 8 of Notes to Consolidated Financial Statements included in Part II, Item 8 of this Form 10-
K.