DSW 2015 Annual Report Download - page 28

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Table of Contents
The table below represents the change in net working capital and the current ratio for the prior period presented:
As of January 31, 2015
(in thousands)
As previously reported
As adjusted
Net working capital
$ 484,680
$ 464,933
Current ratio
2.7
2.6

For fiscal 2015, our net cash provided by operations was $242.7 million compared to $197.0 million for fiscal 2014 with the change driven primarily by
changes in working capital.
Net cash provided by operations in fiscal 2014 decreased to $197.0 million from $301.4 million for fiscal 2013. The decrease in net cash provided by
operations was driven primarily by changes in working capital, an increase in inventories due to store growth and opportunistic pre-buys, the usage of our net
operating losses in fiscal 2013 and the settlement of the pension plan in fiscal 2013.
Free cash flow is defined as cash flows from operating activities less capital expenditures. The table below represents the free cash flow for the periods
presented:
Fiscal
2015
2014
2013
(in thousands)
Cash flows from operating activities
$ 242,651
$ 197,038
$ 301,375
Capital expenditures
111,691
93,314
83,800
Free cash flow
$ 130,960
$ 103,724
$ 217,575
We operate our stores and fulfillment center from leased facilities. All lease obligations are accounted for as operating leases. We disclose the minimum
payments due under operating leases in the notes to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K. We own
our corporate office headquarters and our distribution center.
Although our plan for continued expansion could place increased demands on our financial, managerial, operational and administrative resources and result
in increased demands on management, we do not believe that our anticipated growth plan will have an unfavorable impact on our operations or liquidity.

For fiscal 2015, our net cash used in investing activities was $31.1 million compared to $105.5 million for fiscal 2014. During fiscal 2015, we incurred
$111.7 million for capital expenditures, of which $52.3 million related to stores, $28.2 million related to technology and the remaining $31.2 million related
to supply chain and other business projects. During fiscal 2015, we had net sales of short-term and long-term investments of $73.6 million compared to $69.8
million during fiscal 2014. The net sales of investments were to fund our share repurchases and payment of dividends.
For fiscal 2014, cash used in investing activities amounted to $105.5 million compared to $241.4 million for fiscal 2013. During fiscal 2014, we incurred
$93.3 million in capital expenditures, of which $53.4 million related to stores and $39.9 million related to information technology and business
infrastructure. During fiscal 2014, we had net sales and maturities of short-term and long-term investments of $69.8 million compared to net purchases of
short-term and long-term investments of $148.9 million during fiscal 2013. DSW's net sales and maturities of short-term investments primarily were to fund
DSW's equity investment in Town Shoes in May 2015, share repurchases and the payment of dividends.
24
Source: DSW Inc., 10-K, March 24, 2016 Powered by Morningstar® Document Research℠
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