1. What is the par value per share for the common stock? Par value per share 2. How many common shares were issued as of the end of the most recent year? (Enter your answers in thousands, not in dollars. For example, $55,000 should be entered as 55.) Number of common shares issued 3-a. Did the company have any treasury stock at the end of the most recent year? Yes No 3-b. How many shares of treasury stock did the company have at the end of the most recent year? (Enter your answers in thousands, not in dollars. For example, $55,000 should be entered as 55.) Number of shares 4. How much did the company pay in cash dividends in the most recent year? (Hint: Look in the statement of stockholders' equity in the retained earnings column.) (Enter your answers in thousands, not in dollars. For example, $55,000 should be entered as 55.) Cash dividends paid A-4 APPENDIX A American Eagle Outfitters, Inc., 2017 Annual Report AMERICAN EAGLE OUTFITTERS, INC. Consolidated Balance Sheets February 3, 2018 January 28, 2017 $ in thousands, except per share amounts) Assets Current assets: Cash and cash equivalents Merchandise inventory Accounts receivable, net Prepaid expenses and other Total current assets Property and equipment, net of accumulated depreciation Intangible assets, net of accumulated amortization Goodwill Deferred income taxes Other assets Total assets 413,613 398,213 78,304 78,400 968,530 724,239 46,666 15,070 9,344 52,464 1,816,313 378,613 358,446 86,634 77,536 901,229 707,797 49,373 14,887 49,250 60,124 1,782,660 $ 246,204 54,184 78,619 236,703 54,324 83,312 12,781 52,347 11,203 34,551 485,221 12,220 52,966 12,780 36,810 493,783 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued compensation and payroll taxes Accrued rent Accrued income and other taxes Unredeemed gift cards and gift certificates Current portion of deferred lease credits Other liabilities and accrued expenses Total current liabilities Non-current liabilities: Deferred lease credits Non-current accrued income taxes Other non-current liabilities Total non-current liabilities Commitments and contingencies Stockholders' equity Preferred stock, $0.01 par value; 5,000 shares authorized: none issued and outstanding Common stock, $0.01 par value: 600,000 shares authorized; 249,566 shares issued: 177,316 and 181.886 shares outstanding, respectively Contributed Accumulated other comprehensive loss, net of tax Retained earnings Treasury stock, 72,250 and 67,680 shares, respectively, at cost Total stockholders' equity Total liabilities and stockholders' equity 47,977 7,269 29,055 84,301 45,114 4,537 34,657 84,308 capital 2,496 593,770 (30,795) 1,883,592 (1 202 272) 1,246,791 1,816,313 2,496 603,890 (36,462) 1,775,775 (1,141,130) 1,204,569 1,782,660 Refer to Notes to Consolidated Financial Statements A-5 APPENDIX A American Eagle Outfitters, Inc., 2017 Annual Report AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Operations February 3, 2018 3,795,549 For the Years Ended January 28, 2017 3,609,865 January 30, 2016 3,521,848 (In thousands, except per share amounts) Total net revenue Cost of sales, including certain buying, occupancy and warehousing expenses Gross profit Selling, general and administrative expenses Impairment and restructuring charges Depreciation and amortization expense Operating income Other (expense) income, net Income before income taxes Provision for income taxes Income from continuing operations Discontinued operations, net of tax Net income 2,425,044 1,370,505 879,685 20,611 167,421 302,788 (15,615) 287,173 83,010 204,163 2,242.938 1,366,927 857,562 21,166 156,723 331,476 3,786 335,262 122.813 212,449 2.219,114 1,302,734 834,700 0 148,156 319,878 1,993 321,871 108,580 213,291 4,847 218,138 $ 204,163 $ 212,449 1.15 1.17 $ Basic income per common share: Income from continuing operations Discontinued operations Basic net income per common share 1.10 0.02 1.12 1.15 $ 1.17 $ 1.13 1.16 Diluted income per common share: Income from continuing operations Discontinued operations Diluted net income per common share 1.09 0.02 1.11 1.13 $ 1.16 Weighted average common shares outstanding - basic Weighted average common shares outstanding - diluted 177,938 180, 156 181,429 183,835 194,351 196,237 Refer to Notes to Consolidated Financial Statements A-6 APPENDIX A American Eagle Outfitters, Inc., 2017 Annual Report AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Comprehensive Income February 3, 2018 204,163 For the Years Ended January 28, 2017 $ 212,449 January 30, 2016 218,138 $ in thousands) Net income Other comprehensive gain (loss): Foreign currency translation gain (loss) Other comprehensive gain (loss) Comprehensive income 5,667 5,667 209,830 (6,594) (6,594) 205,855 (19,924) (19,924) 198,214 $ $ $ Refer to Notes to Consolidated Financial Statements A-7 APPENDIX A American Eagle Outfitters, Inc., 2017 Annual Report AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Stockholders' Equity Shares Outstanding (0) 194,516 Common Stock 2,496 Contributed Retained Capital Earnings $ 669,675 $ 1,543,085 31,937 Treasury Stock (2) (965,566 Accumulated Other Comprehensive Stockholders Income Loss Equity (9.944) $ 1,139,746 31,937 (15,563) (324) 1,506 IIIII (227,071) (5.163) 26,461 (13.237) (2,332) 218,138 (227,071) (5,163) 10,892 218,138 (19.924) (19,924) 180,135 2,496 2.445 (99.624) $ 590,820 $1,659,267 $. (1,171,339) 27,877 (97,179) (29.868) $ 1.051 376 27,877 -- In thousands, except per share amounts) Balance at January 31, 2015 Stock awards Repurchase of common stock as part of publicly announced programs Repurchase of common stock from employees Reissuance of treasury stock Net income Other comprehensive loss Cash dividends and dividend equivalents (50.50 per share) Balance at January 30, 2016 Stock awards Repurchase of common stock as part of publicly announced programs Repurchase of common stock from employees Reissuance of treasury stock Net income Other comprehensive loss Cash dividends and dividend equivalents ($0.50 per share) Balance at January 28, 2017 Stock awards Ropurchase of common stock as part of publicly announced programs Repurchase of common stock from employees Reissuance of treasury stock. Other comprehensive loss Cash dividends and dividend equivalents ($0,50 per share) Balance at February 3, 2018 (455) 2,206 IIIII (17.247) (2,821) 212,449 (7,032) 37.241 (7,032) 17.173 212,449 (6.594) (6.594) 181,886 2,496 (90,680) (36,462) $ 1,204,569 17,202 (6,000) (871) 2.301 2.440 (93.120) 603,890 $1,775,776 $ (1,141,130) 17.202 (87.672) (12,513) (29.632) (5.488) 39.043 204,163 (87.672) (12,513) 3,923 204,163 5.667 Not income 5,667 177 316 2310 (90 858 2,496 $693,770 $1,883,692 $(1,202,272) (88,548) (30.795) $ 1.246,791 (1) 600,000 authorized, 249,566 issued and 177,316 outstanding, $0.01 par value common stock at February 3, 2018; 600,000 authorized, 249,566 issued and 181,886 outstanding, $0.01 par value common stock at January 28, 2017, 600,000 authorized, 249,566 issued and 180,135 outstanding, $0.01 par value common stock at January 30, 2016, 600,000 authorized, 249,566 issued and 194,516 outstanding, $0.01 par value common stock at January 31, 2015. The Company has 5,000 authorized, with none issued or outstanding. $0.01 par value preferred stock for all periods presented (2) 72,250 shares, 67,680 shares and 69,431 shares at February 3, 2018, January 28, 2017 and January 30, 2016 respectively. During Fiscal 2017, Fiscal 2016, and Fiscal 2015, 2,301 shares, 2,206 shares, and 1,506 shares, respectively, were reissued from treasury stock for the issuance of share-based payments. Refer to Notes to Consolidated Financial Statements AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Cash Flows February 3, 2018 For the Years Ended January 28, 2017 January 30, 2016 '$ 204,163 $ 212,449 218,138 14.847) 213,291 $ 204,163 $ 212,449 169.473 16,890 44,312 (5,616) 158,174 29,137 14.838 (835) 20,576 148,858 34,977 4.680 2,977 (9.422) In thousands) Operating activities: Not income Gain from discontinued operations, net of tax Income from continuing operations Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization Share-based compensation Deferred income taxes Foreign currency transaction (gain) loss Loss on impairment of assets Gain on sale of assets Changes in assets and liabilities: Merchandise inventory Accounts receivable Prepaid expenses and other Other assets Accounts payablo Unredeemed gift cards and gift certificates Deforred lease credits Accrued compensation and payroll taxes Accrued income and other taxes Accrued liabilities Total adjustments Net cash provided by operating activities from continuing operations Investing activities: Capital expenditures for property and equipment Acquisitions and purchase of long-lived assets in business combination Proceeds from sale of assets Acquisition of intangible assets Net cash used for investing activities from continuing operations Financing activities: Payments on capital leases and other Repurchase of common stock as part of publicly announced programs Repurchase of common stock from employees Net proceeds from stock options exercised Excess tax benefit from share-based payments Cash dividends paid Net cash used for financing activities from continuing operations Effect of exchange rates on cash Cash flows of discontinued operations Net cash used for operating activities Net cash used for investing activities Net cash used for financing activities Effect of exchange rates on cash Net cash used for discontinued operations Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - beginning of period Cash and cash equivalents - end of period (35,912) 8,837 (399) 5,317 (16,663) (874) 984 1,289 565 2,060 190,263 394,426 (53,613) (7.705) (332) (6.705 52,347 4,465 (5.229) (25,809 (10.695 (15.467 153,147 (22.259) (10,093) (7,027) (10.017 (3.189) 755 (4.099) 34.234 (17.615) (14,133) 128,627 341,918 365,596 (169,469) (161,494) (153,256) (10.442) 12.579 12.382 ) (153,501) (2.681) (172 150) (1.528 (163,022) (4,375) (3,384) (87.882) (12,513) 3,355 (7.635) (227.071) (5.163 7,283 657 (97,237) (329,166 (3,076) (7,032) 16.260 763 (90,680 (85,064 1,036 (88,548) (188,772) 1,496 (6,805) 35,000 378,613 413,613 118,546 260.067 378,613 (6 805 (150,630) 410,697 260.067 Refer to Notes to Consolidated Financial Statements A-12 APPENDIX A American Eagle Outfitters, Inc., 2017 Annual Report 3. Cash and Cash Equivalents The following table summarizes the fair market value of our cash and marketable securities, which are recorded on the Consolidated Balance Sheets February 3, 2018 January 28, 2017 $ in thousands) Cash and cash equivalents: Cash Interest bearing deposits Commercial paper Total cash and cash equivalents 184.107 174,577 54 929 413,613 $ 265,332 83,281 30,000 378,613 4. Fair Value Measurements ASC 820, Fair Value Measurement Disclosures ("ASC 820), defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosures about fair value measurements. Fair value is defined under ASC 820 as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date Financial Instruments Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. In addition, ASC 820 establishes this three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1 - Quoted prices in active markets. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities . . In accordance with ASC 820, the following tables represent the fair value hierarchy for the Company's financial assets (cash equivalents) measured at fair value on a recurring basis as of February 3, 2018 and January 28, 2017 Fair Value Measurements at February 3, 2018 Quoted Market Prices in Active Markets for Identical Significant Other Observable inputs (Level 1) (Level 2) Assets Significant Unobservablo Inputs (Lovel 3) Carrying Amount S $ In thousands) Cash and cash equivalents Cash Interest bearing deposits Commercial paper Total cash and cash equivalents Percent to total 184,107 174,577 54,929 413,613 100.0% 184,107 174,577 54,929 413,613 100.0% Fair Value Measurements at January 28, 2017 Quoted Market Prices in Active Markets for Identical Significant Other Assets Observable Inputs (Level 1) (Level 2) Significant Unobservable Inputs (Level 3) Caming Amount $ $ $ (in thousanda) Cash and cash equivalents Cash Interest bearing deposits Commercial paper Total cash and cash equivalents Percent to total 265,332 83,281 30,000 378,613 100.0% 265,332 83,281 30,000 378,613 100.0% $ In the event the Company holds Level 3 investments, a discounted cash flow model is used to value those investments. There were no Level 3 investments at February 3, 2018 or January 28, 2017 risk-adjusted rate of interest. The Company estimates lului located. 5. Earnings per Share The following is a reconciliation between basic and diluted weighted average shares outstanding: February 3, 2018 For the Years Endod January 28, 2017 January 30 2016 177,938 181,429 194,351 (In thousands, except per share amounts) Weighted average common shares outstanding: Basic number of common shares outstanding Dilutive effect of stock options and non-vested restricted stock Dilutive number of common shares outstanding 2,218 180,156 2,406 183,835 1,886 196,237 Stock option awards to purchase approximately 2.2 million, 2.2 million and 13,000 shares of common stock during the Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively, were outstanding, but were not included in the computation of weighted average diluted common share amounts as the effect of doing so would have been anti-dilutive. Additionally, approximately 0.9 million 0.1 million, and 0.7 million of performance-based restricted stock awards for Fiscal 2017, Fiscal 2016, a nd Fiscal 2015, respectively, were not included in the computation of weighted average diluted common share amounts because the number of shares ultimately issued is contingent on the Company's performance compared to pre-established performance goals Refer to Note 12 to the Consolidated Financial Statements for additional information regarding share-based compensation, 6. Accounts Receivable, net Accounts receivable, net are comprised of the following: tin thousands) Franchise and license receivable Merchandise sell-offs and vendor receivables Credit card program receivable Tax refunds Landiord construction allowances Gift card receivable Other items Total February 3 January 28, 2018 2017 32,930 35,983 15,742 20,089 9.544 11,869 8,271 4,731 5,605 2,412 1,799 6,567 4,413 4,983 78,304 $ 86,634 $ Allowance for uncollectible receivables of $20.4 million and $4.2 million are included within Accounts receivable, net as of February 3, 2018 and January 28, 2017, respectively 7. Property and Equipment Property and equipment consists of the following: in thousands) Land Buildings Leasehold improvements Fixtures and equipment Construction in progress Property and equipment, at cost Less: Accumulated depreciation Property and equipment, net February 3, 2018 17.910 $ 206,505 630,725 1,143,140 25,595 2,023,875 $ (1.299,636) 724 239 $ January 28, 2017 17,910 204,890 606,522 1,028, 117 26,858 1,884,297 (1.176,500) 707 797 $ $ Depreciation expense is summarized as follows: A APPENDIX A American Eagle Outfitters, Inc., 2017 Annual Report summary of fixed minimum and contingent rent expense for all operating leases follows: For the Years Ended January 28, 2017 February 3, 2018 January 30, 2016 $ $ 298,458 $ 9,566 286,850 8,519 282,300 9,035 (In thousands) Store rent: Fixed minimum Contingent Total store rent, excluding common area maintenance charges, real estate taxes and certain other expenses Offices, distribution facilities, equipment and other Total rent expense $ $ $ 308,025 26,960 334,985 295,369 18.172 313,541 291,335 16.063 307,398 $ In addition, the Company is typically responsible under its store, office and distribution center leases for tenant occupancy costs, including maintenance costs, common area charges, real estate taxes and certain other expenses. The table below summarizes future minimum lease obligations, consisting of fixed minimum rent, under operating leases in effect at February 3 2018 (In thousands) Fiscal years 2018 2019 2020 2021 2022 Thereafter Total Future Minimum Lease Obligations $ 286,300 $ 252, 150 S 229,056 $ 202,605 $ 168,993 $ 435,616 $ 1,574,720