Urban Outfitters 2010 Annual Report Download - page 35

amortization expense. Cash used in investing activities for fiscal 2010 was $495 million of which $109
million was used primarily for the construction of new stores and $386 million was the net activity
used for purchases and sales of marketable securities. Cash from financing activities in fiscal 2010 of
$10 million was related to exercises of stock options and related tax benefits on stock option exercises.
Our working capital for fiscal years 2010, 2009 and 2008 was $618 million, $483 million and $266
million, respectively. The changes in working capital primarily relate to changes to the volume of
cash, cash equivalents, marketable securities and inventories relative to inventory-related payables and
store-related accruals.
During the last three years, we have satisfied our cash requirements through our cash flow from
operations. Our primary uses of cash have been to open new stores and purchase inventories. We have
also continued to invest in our direct-to-consumer efforts, wholesale businesses and in our European
subsidiaries. Cash paid for property and equipment, net of tenant improvement allowances included in
deferred rent for fiscal 2010, 2009 and 2008 were $109 million, $109 million and $92 million
respectively, and were primarily used to expand and support our store base. During fiscal 2011, we
plan to construct and open approximately 45 new stores, renovate certain existing stores, complete an
expansion of our home office in Philadelphia, Pennsylvania, modestly increase our catalog circulation
by approximately 3 million catalogs to approximately 40 million catalogs, and purchase inventory for
our stores, direct-to-consumer and wholesale businesses at levels appropriate to maintain our planned
sales growth. We plan to increase the level of capital expenditures during fiscal 2011 to approximately
$130 million. We believe that our new store, catalog and inventory investments have the ability to
generate positive cash flow within a year. We believe improvements to our home office and
distribution facilities are necessary to adequately support our growth.
During fiscal 2011, we plan to complete a 54,000 square foot expansion of our home office in
Philadelphia, Pennsylvania. We anticipate the project will cost approximately $25 million. We believe
this expansion will help support our growth for the near term.
During fiscal 2010, we completed a 100,000 square foot addition to our Lancaster, Pennsylvania
distribution facility. This facility primarily serves our midwest and east coast stores. We believe this
expansion will help support our growth for the near term.
During fiscal 2008, we entered into an operating lease for a warehouse facility in Reno, Nevada to
support our western United States stores. The facility is approximately 214,500 square feet and the
term of the lease is set to expire in 2017 with our option to renew for up to an additional 10 years.
During fiscal 2008, we invested approximately $6.3 million in equipment and other improvements for
this location. In March 2009, we executed a lease for an additional 39,000 square feet of warehouse
space at our Reno, Nevada facility that is included in the total noted above. We believe this expansion
will help support our growth for the next several years.
During fiscal 2011, we may enter into one or more acquisitions or transactions related to the
expansion of our brands. We do not anticipate that these acquisitions or transactions individually or in
the aggregate will be material to our financial statements as a whole.
On February 28, 2006, our Board of Directors approved a stock repurchase program. The program
authorizes us to repurchase up to 8,000,000 common shares from time-to-time, based upon prevailing
market conditions. During the fiscal year ended January 31, 2007, we repurchased and subsequently
retired 1,220,000 shares at a cost of approximately $21 million. No shares have been repurchased since
fiscal 2007.
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