Ross 2014 Annual Report Download - page 32

Changes in packaway inventory levels impact our operating cash flow. At the end of fiscal 2014, packaway inventory was 45% of
total inventory compared to 49% and 47% at the end of fiscal 2013 and 2012, respectively.
Investing Activities
Net cash used in investing activities was $639.0 million, $563.8 million, and $425.7 million in fiscal 2014, 2013, and 2012,
respectively. The increases in cash used for investing activities in fiscal 2014, 2013, and 2012 were primarily due to increases in
our capital expenditures.
In fiscal 2014, 2013, and 2012, our capital expenditures were $646.7 million, $550.5 million, and $424.4 million, respectively. Our
capital expenditures include costs to build or expand distribution centers, open new stores and improve existing stores, and for
various other expenditures related to our information technology systems, buying, and corporate offices. We opened 95, 88, and
82 new stores in fiscal 2014, 2013, and 2012, respectively. In September 2014 we completed the purchase of the office building
where our New York buying office is located for $222 million.
Our capital expenditures over the last three years are set forth in the table below:
($ millions)
2014 2013 2012
New York buying office $ 210.9 $ 11.1 $ —
Distribution 193.2 24 8 .4 157. 9
New stores 119.8 121.3 118.7
Existing stores 79.5 59.1 86.9
Information systems, corporate, and other 43.3 110.6 60.9
Total capital expenditures $ 646.7 $ 550.5 $ 424.4
We are forecasting approximately $450 million in capital expenditures for fiscal year 2015 to fund costs for fixtures and leasehold
improvements to open new Ross and dd’s DISCOUNTS stores, the upgrade or relocation of existing stores, investments in
information technology systems, and for various other expenditures related to our stores, distribution centers, buying and
corporate offices. We expect to primarily fund capital expenditures with available cash and cash flows from operations.
We had no purchases of investments in fiscal 2014 and purchases of $12.0 million and $5.4 million in fiscal 2013 and fiscal 2012,
respectively. We had proceeds from investments of $12.0 million, $1.6 million, and $6.2 million in fiscal 2014, 2013, and 2012,
respectively.
Financing Activities
Net cash used in financing activities was $460.4 million, $681.8 million, and $557.0 million in fiscal 2014, 2013, and 2012,
respectively. During fiscal 2014, 2013, and 2012, our liquidity and capital requirements were provided by available cash and
cash flows from operations and in fiscal 2014, the issuance of our unsecured 3.375% Senior Notes due September 2024 (“2024
Notes”).
In September 2014, we issued $250 million of unsecured 2024 Notes and used most of the net proceeds of approximately
$246 million to purchase our New York buying office building for $222 million and the remaining $24 million for other general
corporate purposes.
We repurchased 7.4 million, 8.2 million, and 7.5 million shares of common stock for aggregate purchase prices of approximately
$550 million, $550 million, and $450 million in fiscal 2014, 2013, and 2012, respectively. We also acquired 0.5 million shares in
each of fiscal 2014, 2013, and 2012 of treasury stock from our employee stock equity compensation programs, for aggregate
purchase prices of approximately $39.0 million, $29.9 million, and $29.4 million during fiscal 2014, 2013, and 2012, respectively.
In February 2015, our Board of Directors approved a new two-year $1.4 billion stock repurchase program for fiscal 2015 and 2016.
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