Dick's Sporting Goods 2014 Annual Report Download - page 58

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32
Changes in cash and cash equivalents are as follows:
Fiscal Year Ended
January 31,
2015 February 1,
2014 February 2,
2013
Net cash provided by operating activities $ 605,978 $ 403,870 $ 438,284
Net cash used in investing activities (305,020)(339,175)(324,354)
Net cash used in financing activities (260,913)(228,090)(503,112)
Effect of exchange rate changes on cash and cash equivalents (97)(88)(6)
Net increase (decrease) in cash and cash equivalents $ 39,948 $ (163,483) $ (389,188)
Operating Activities
Operating activities consist primarily of net income, adjusted for certain non-cash items and changes in operating assets and
liabilities. Adjustments to net income for non-cash items include depreciation and amortization, deferred income taxes, stock-
based compensation expense and tax benefits on stock options, as well as non-cash gains and losses on the disposal of the
Company's assets. Changes in operating assets and liabilities primarily reflect changes in inventories, accounts payable and
income taxes payable / receivable, as well as other working capital changes.
Cash provided by operating activities increased $202.1 million in fiscal 2014 to $606.0 million. The increase in cash provided
by operating activities is due primarily to an increase in cash flows provided by changes in operating assets and liabilities. The
increase in operating assets and liabilities year-over-year is primarily due to the following:
• Changes in deferred construction allowances increased operating cash flows by $53.9 million compared to last year
due primarily to an increase in the number of self-developed stores where tenant allowances are provided by landlords.
• Changes in income taxes payable / receivable for fiscal 2014 increased operating cash flows by $45.8 million
compared to the same period in fiscal 2013. Income tax payments in 2014 were favorably impacted by the timing of
deductions related to qualified capital expenditures.
• Cash flows provided by changes in inventory and accounts payable increased $46.8 million compared to fiscal 2013,
primarily attributable to the timing of inventory receipts.
• Changes in accrued expenses increased $23.3 million compared to last year, primarily due to higher incentive
compensation accruals at the end of fiscal 2012 that were subsequently paid in fiscal 2013.
Investing Activities
Cash used in investing activities for fiscal 2014 decreased by $34.2 million to $305.0 million from fiscal 2013. During fiscal
2014, the Company received $73.4 million of proceeds from the sale of a Gulfstream G650 corporate aircraft, compared to
$11.0 million received from the sale of a Gulfstream G200 corporate aircraft during fiscal 2013. Deposits and purchases of
other assets decreased $34.0 million compared to last year. Last year included $48.8 million of payments related to the
acquisition of corporate aircraft, while this year includes the Company's $26.3 million acquisition of intellectual property rights
to the Field & Stream mark in product categories that were not otherwise owned by the Company. These reductions in investing
activity cash outflows were partially offset by a $63.3 million increase in gross capital expenditures during fiscal 2014
compared to fiscal 2013, which reflects a higher number of self-developed stores opened by the Company in fiscal 2014.
Financing Activities
Cash used in financing activities consists primarily of the Company's capital return initiatives, including its share repurchase
program and cash dividend payments, and cash flows generated from stock option exercises. Cash used in financing activities
for fiscal 2014 totaled $260.9 million compared to $228.1 million in fiscal 2013. The increase in cash used primarily reflects
changes in our bank overdraft balance between years and lower cash flows from stock option exercises during fiscal 2014.
These increases were partially offset by lower share repurchases in fiscal 2014.