AMERICAN EAGLE OUTFITTERS, INC. Consolidated Balance Sheets (In thousands, except per share amounts) Assets Current assets: February 1, 2020 February 2, 2019 Cash and cash equivalents 361,930 333,330 Short-term investments (available for sale) 55,000 92,135 Merchandise inventory 446,278 424,404 Accounts receivable, net 119,064 93,477 Prepaid expenses and other 65,658 102,907 Total current assets 1,047,930 1,046,253 Property and equipment, at cost, net of accumulated depreciation 735,120 742,149 Operating lease right-of-use assets 1,418,916 Intangible assets, net, including goodwill 53,004 58,167 Non-current deferred income taxes 22,724 14,062 Other assets 50,985 42,747 3,328,679 1,903,378 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Current portion of operating lease liabilities Accrued income and other taxes Accrued compensation and payroll taxes Unredeemed gift cards and gift certificates Other current liabilities and accrued expenses Total current liabilities Non-current liabilities: Non-current operating lease liabilities Other non-current liabilities Total non-current liabilities 285,746 299,161 240,671 9,514 20,064 43,537 82,173 56,974 53,997 56,824 145,740 751,756 542,645 1,301,735 27,335 73,178 1,329,070 73,178 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; 166,993 and 172,436 shares outstanding, respectively 2,496 Contributed capital 577,856 2,496 574,929 Accumulated other comprehensive loss, net of tax (33,168) (34,832) Retained earnings 2,108,292 2,054,654 Treasury stock, 82,573 and 77,130 shares, respectively, at cost (1,407,623) (1,309,692) Total stockholders' equity 1,247,853 1,287,555 Total liabilities and stockholders' equity 3,328,679 1,903,378 Refer to Notes to Consolidated Financial Statements (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 February 1, 2020 For the Years Ended February 2. 2019 February 3, 2018 4,308,212 4,035,720 $ 3,795,549 2,785,911 2,548,082 2,425,044 1,522,301 1,487,638 1,370,505 1,029,412 980,610 879,685 80,494 1,568 20,611 Depreciation and amortization expense 179,050 168,331 167,421 Operating income Other income (expense), net Income before income taxes Provision for income taxes Net income Basic net income per common share 233,345 337,129 302,788 11,933 7,971 (15,615) 245,278 345,100 287,173 54,021 83,198 83,010 191,257 $ 261,902 204,163 1.13 $ 1.48 $ 1.15 Diluted net income per common share 1.12 1.47 1.13 Weighted average common shares outstanding - basic 169,711 176,476 177,938 Weighted average common shares outstanding - diluted 170,867 178,035 180,156 AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Comprehensive Income (In thousands) Net income Other comprehensive gain (loss): Foreign currency translation gain (loss) Other comprehensive gain (loss) Comprehensive income For the Years Ended February 1, 2020 February 2, February 3, 2019 2018 191,257 $ 261,902 $ 204,163 1,664 (4,037) 5,667 1,664 (4,037) 5,667 192,921 $ 257,865 209,830 Refer to Notes to Consolidated Financial Statements THE BU CONSOLIDATED BALANCE SHEETS (Amounts in Thousands Except Share and Per Share Amounts) ASSETS CURRENT ASSETS: February 1. 2020 February 2, 2019 Cash and cash equivalents 220,969 5 168,471 Short-term investments (Notes B and C) Receivables Inventory Prepaid expenses and other assets Total current assets PROPERTY AND EQUIPMENT (Note E) 12.532 51,546 3,136 7,089 121.258 125,190 20,935 18.136 378,830 370,432 452,205 452,187 Less accumulated depreciation and amortization (338357) (321,505) 113,848 130,682 OPERATING LEASE RIGHT-OF-USE ASSETS (Note D) 350,088 LONG-TERM INVESTMENTS (Notes B and C) OTHER ASSETS (Notes G and H) 15,363 9261 18,745 7,443 Total assets LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable Accrued employee compensation Accrued store operating expenses Gift certificates redeemable Cument portion of operating lease liabilities (Note D) Income taxes payable (Note G) Total current liabilities DEFERRED COMPENSATION (Note 1) NON-CURRENT OPERATING LEASE LIABILITIES (Note D) DEFERRED RENT LIABILITY Total liabilities COMMITMENTS (Notes F and I) STOCKHOLDERS EQUITY (Note K Common stock, authorized 100,000,000 shares of 5.01 par value: 49,205,681 and 49,017.395 shares issued and outstanding at February 1, 2020 and February 2, 2019, respectively Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity See notes to consolidated financial statements. 867.390 527.302 26,491 $ 22,929 29,008 21,452 17.837 17,982 15,319 16,634 87314 2.751 5.142 172,641 90,218 15,363 13,978 290,238 29.229 478,742 133,425 492 490 152.258 148,564 236,398 244,823 389,148 39377 867390 527,302 CONSOLIDATED STATEMENTS OF INCOME (Amounts in Thousands Except Per Share Amounts) SALES, Net of returns and allowances COST OF SALES (Including buying, distribution, and occupancy costs) Gross profit OPERATING EXPENSES Selling February 1, 2020 Fiscal Years Ended February 2, 2019 February 3, 2018 900,254 $ 885,496 S 913,380 522,780 519,423 533,357 377,474 366,073 380,023 204,480 202,032 206,068 General and administrative 41,497 43,113 39,877 245,977 245,145 245,945 INCOME FROM OPERATIONS 131,497 120,928 134,078 OTHER INCOME, Net 6,210 5,716 5,407 INCOME BEFORE INCOME TAXES 137,707 126,644 139,485 PROVISION FOR INCOME TAXES (Note G) 33,278 31,036 49,778 NET INCOME 104,429 S 95,608 89,707 EARNINGS PER SHARE (Note L.): Basic 215 1.97 1.86 Diluted 2.14 1.97 1.85 See notes to consolidated financial statements. NET INCOME OTHER COMPREHENSIVE INCOME, NET OF TAX: Change in unrealized loss on investments, net of tax of $0, $31, and $17, respectively Other comprehensive income COMPREHENSIVE INCOME See notes to consolidated financial statements. February 1, 2020 Fiscal Years Ended February 2, 2019 February 3, 2018 104,429 $ 95,608 5 89,707 89 89 (7) (7) 104,429 95,697 $ 89,700 Seved Check my work mode: This shows what is correct or incorrect for the wor 1-b. Based on these calculations, which company appears to be more risky? 2-a. Calculate the following profitability ratios for both companies for the most recent year. 2-b. Based on these calculations, which company appears to be more profitable? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req la Req 1b Req 2a Req 2b Calculate the following risk ratios for both companies for the most recent year. (Use 365 days a year. Round your im calculations and final answers to 1 decimal place.) Risk Ratios AMERICAN EAGLE THE BUCKITE a. Receivables turnover ratio b. Average collection period c. Inventory turnover ratio 40.5 times 9.0 days 6.4 times 4.2 d. Average days in inventory 57.0 days e. Current ratio 1.4 2.2 f. Acid-test ratio 10.B 1.5 g. Debt to equity ration 166.8 123.0 0000000 176.1 times 2.0 days times 67.0 days % Req 1b > MO Prev 1 of 1 2 1-b. Based on these calculations, which company appears to be more risky? 2-a. Calculate the following profitability ratios for both companies for the most recent year. 2-b. Based on these calculations, which company appears to be more profitable? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req la Req 1b Req 2a Req 2b Calculate the following profitability ratios for both companies for the most recent year. (Round your intermedia and final answers to 1 decimal place.) Profitability Ratios a. Gross profit ratio b. Return on assets c. Profit margin d. Asset turnover e. Return on equity AMERICAN EAGLE THE BUCKLE 35.3 % 41.9 % 7.3 % 15.0 % 4.4 % 11.6 % 1.7 times 1.3 times 0.4 % 26.8 % 31 MO Prev 1 of 1 5 Cop