Dillard's 2015 Annual Report Download - page 32

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26
Asset Impairment and Store Closing Charges
(in thousands of dollars) Fiscal 2015 Fiscal 2014 Fiscal 2013
Asset impairment and store closing charges:
Retail operations segment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ 5,353
Construction segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ———
Total asset impairment and store closing charges. . . . . . . . . . . . . . . . . . . . . . $ — $ — $ 5,353
Fiscal 2013
Asset impairment and store closing charges for fiscal 2013 consisted of the write-down of certain cost method
investments.
Income Taxes
The Company's estimated federal and state effective income tax rate, inclusive of income on and equity in losses of joint
ventures, was 34.3% in fiscal 2015, 35.1% in fiscal 2014, and 34.9% in fiscal 2013. The Company expects the fiscal 2016
federal and state effective income tax rate to approximate 35%.
Fiscal 2015
During fiscal 2015, income taxes included the recognition of tax benefits of approximately $2.0 million related to federal
tax credits and $1.5 million due to net decreases in valuation allowances related to state net operating loss carryforwards.
Fiscal 2014
During fiscal 2014, income taxes included the recognition of tax benefits of approximately $2.8 million related to federal
tax credits and $1.4 million due to net decreases in unrecognized tax benefits, interest and penalties. These tax benefits were
partially offset by tax expense of approximately $1.5 million due to net increases in valuation allowances related to state net
operating loss carryforwards. In addition, during fiscal 2014, the IRS concluded its examination of the Company's federal
income tax returns for fiscal tax years 2011 and 2012, with no material changes in these tax years as a result of such
examination.
Fiscal 2013
During fiscal 2013, income taxes included the recognition of tax benefits of approximately $5.5 million related to
decreases in valuation allowances related to state net operating loss carryforwards and $3.0 million related to federal tax
credits.
LIQUIDITY AND CAPITAL RESOURCES
The Company's current non-operating priorities for its use of cash are stock repurchases, strategic investments to enhance
the value of existing properties and dividend payments to stockholders.
Cash flows for the Company's most recent three fiscal years were as follows:
Percent Change
(in thousands of dollars) Fiscal 2015 Fiscal 2014 Fiscal 2013 2015 - 2014 2014 - 2013
Operating Activities. . . . . . . . . . . . . . . . . . . . . . $ 450,226 $ 611,589 $ 501,757 (26.4)% 21.9%
Investing Activities . . . . . . . . . . . . . . . . . . . . . . (132,939) (143,412)(76,628) 7.3 (87.2)
Financing Activities. . . . . . . . . . . . . . . . . . . . . . (518,170) (301,559)(312,055) (71.8) 3.4
Total Cash (Used) Provided. . . . . . . . . . . . . . . $ (200,883) $ 166,618 $ 113,074
Operating Activities
The primary source of the Company's liquidity is cash flows from operations. Due to the seasonality of the Company's
business, we have historically realized a significant portion of the cash flows from operating activities during the second half of
the fiscal year. Retail operations sales are the key operating cash component, providing 94.6%, 95.7% and 96.2% of total
revenues in fiscal 2015, 2014 and 2013, respectively.