I need the liquidity, solvency and probability ratios. I would also like your opinion on the financial strength and overall profitability of the company.
Table of Contents AMERICAN EAGLE OUTFITTERS, INC. CONSOLIDATED BALANCE SHEETS January 31, 2015 February 1, 2014 $ 410,697 278,972 67,894 73,848 59,102 890,513 694,856 47,206 13,096 14,035 37,202 $1,696,908 $ 418,933 10,002 291,541 73,882 88,155 45,478 927,991 632,986 49.271 13,530 24,835 45,551 $1,694,164 (In thousands, except per share amounts) Assets Current assets: Cash and cash equivalents Short-term investments Merchandise inventory Accounts receivable Prepaid expenses and other Deferred income taxes Total current assets Property and equipment, at cost, net of accumulated depreciation Intangible assets, at cost, net of accumulated amortization Goodwill Non-current deferred income taxes Other assets Total assets 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, S0.01 par value; 5,000 shares authorized; none issued and outstanding Common stock, $0.01 par value; 600,000 shares authorized; 249,566 shares issued: 194,516 and 193,149 shares outstanding, respectively Contributed capital Accumulated other comprehensive income Retained earnings Treasury stock, 55,050 and 56,417 shares, respectively, at cost Total stockholders' equity Total liabilities and stockholders' equity $ 191,146 44,884 78,567 33,110 47,888 12,969 50,529 459,093 $ 203,872 23,560 76,397 5,778 47,194 13,293 45,384 415,478 54,516 10,456 33,097 98,069 59,510 16,543 36,455 112,508 2,496 569,675 (9,944) 1,543,085 (965,566) 1,139,746 $1,696,908 2,496 573,008 12,157 1,569,851 (991,334) | 1,166,178 $1,694,164 Table of Contents AMERICAN EAGLE OUTFITTERS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS For the Years Ended February 1, 2014 $3,305,802 2,191,803 1,113,999 796,505 February 2, 2013 $3,475,802 2,085,480 1,390,322 834,601 January 31, 2015 $3,282,867 2,128,193 1,154,674 806,498 17,752 33,468 141,191 155,765 3,737 159,502 70,715 88,787 (8,465) 80.322 (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 Restructuring charges Loss on impairment of assets Depreciation and amortization expense Operating income Other income, net Income before income taxes Provision for income taxes Income from continuing operations Loss from discontinued operations, net of tax Net income Basic income per common share: Income from continuing operations Loss from discontinued operations Basic net income per common share Diluted income per common share: Income from continuing operations Loss from discontinued operations Diluted net income per common share Weighted average common shares outstanding basic Weighted average common shares outstanding - diluted 44,465 131,974 141,055 1,022 142,077 59,094 82,983 34,869 126,246 394,606 7,432 402,038 137,940 264,098 (31,990) $ 232,108 $ 82.983 $ 0.43 $ 0.46 (0.04) 0.42 1.35 (0.16 1.19 S $ 0.43 $ S $ 0.43 $ 0.46 (0.04) 0.42 194,437 195,135 $ 0.43 $ 1.32 (0.16) 1.16 196,211 200,665 192,802 194,475 2015 Item 6. Selected Consolidated Financial Data. The following Selected Consolidated Financial Data should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations, included under Item 7 below and the Consolidated Financial Statements and Notes thereto, included in ltem a below. Most of the selected Consolidated Financial Statements data presented below is derived from our Consolidated Financial Statements if applicable, which are fied in response to ltem & below. The selected Consolidated Statement of Operations data for the years ended February 2, 2013 and January 28, 2012 and the selected Consolidated Balance Sheet data as of February 1, 2014 February 2, 2013 and January 28, 2012 are derived from audited Consolidated Financial Statements not included herein For the Years Ended In thousands, except per share amounts, ratlos and other January 30, January 31, February 1, February 2, January 28, financial information) 2016 2014 2013 2012 Summary of Operations Total net revenue $3,521,848 $3,282,867 53,305,802 53,475,202 $3,120,065 Comparable sales increase (decrease) 7% (57% (6)% 9% 4% Gross profit $1,302,734 $1,154,674 $1,113,999 $1,390,322 $1,144,594 Gross prolit as a percentage of net sales 37.0% 352% 33.7% 40.0% 38.7% Operating income $ 319,878 S 155,766 S 141,055 $ 394.606 $ 269,335 Operating income as a percentage of net sales 9.1% 4.7% 11.4% 8.6% Income from continuing operations $ 213.291 S 88,787 $ 82,983 S 264,098 $ 175,279 Income from continuing operations as a percentage of nel sales 61% 26% 2.5% 76% 5.6% Per Share Results Income from continuing operations per common share-basic $ 1.10 S 0.46 S 0.43S 1.35 $ 0.90 Income from continuing operations per common share-diluted $ 1.09 $ 046 $ 0.43 $ 1.32 S 0.89 Weighted average common shares outstanding - basic 194,351 194,437 192,802 196,211 194,445 Weighted average common shares outstanding diluted 196,237 195,135 194,475 200,665 196,314 Cash dividends per common share $ 0.50 $ 0.50 $ 0.38 $ 2.05 S 0.44 Balance Shoot Information Total cash and short-term investments $ 260,067 $ 410,697 $ 428,935 $630,992 S 745044 Long-term investments 3 $ $ s 847 Total assets $1,612,246 $1,696,908 $1,694,164 $1,756,053 $1,950,802 Short-term debt $ $ Long-term debt $ $ $ $ Stockholders' equity $1,051,376 $1,139,746 $1,166,178 $1,221,187 $1.416,851 Working capital $ 239,693 $368.947 $ 462.604 $ 647.668 $ 833,326 Current ratio 1.56 1.60 2.11 2.49 3.06 Average return on stockholders' equity 19.9% 70% 7.0% 17.6% 11.0% Other Financial Information Total stores at year-end 1,047 1,056 1,066 1.044 1,080 Capital expenditures $ 153.256 S 245,002 $ 278,499 S 93,939 $ 89,468 Net sales per average selling square foot S 545 $ 525 S 547 $ 602 $ 547 Total selling square leet at end of period 5,285,025 5.294,744 5,205,948 4,982.923 5,028.493 Net sales per average gross square foot $ 436 $ 420 $ 444 S 489 $ 438 Total gross square feet at end of period 6,601,112 6,613,100 6,504,486 6,023,278 6.290,284 Number of employees at end of period 37,800 38,000 40,400 40,100 39,800 2015 Annual Report 15 AMERICAN EAGLE OUTFITTERS, INC. Consolidated Balance Sheets January 30, 2016 January 31, 2015 $ 260,067 305,176 80,912 77,218 723,375 703,586 51 832 17,186 64.927 51,340 $ 1.612.246 $ 410,697 278,972 67,894 70.477 528,040 698 227 47,206 13.096 73.137 37,202 $1.696.908 (in thousands, except per share amounts) Assets Current assets: Cash and cash equivalents Merchandise inventory Accounts receivable Prepaid expenses and other Total current assets Property and equipment, at cost, net of accumulated depreciation Intangible assets, al cost, net of accumulated amortization Goodwill Deferred income taxes Other assets Total assets 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 liablities: Deferred loose credits Non-current accrued income taxes Other non-current liabilities Total non-current liabilities Commitments and contingencies Stockholders' equity Preferred stock, 30.01 par value: 5,000 shares authorized: none issued and outstanding Common stock. $0.01 par value, 600,000 shares authorized: 249,566 shares issued: 180,135 and 194,516 shares outstanding, respectively Contributed capital Accumulated other comprehensive loss, net of tax Retained earnings Treasury stock. 69,431 and 55,050 shares, respectively, at cost Total stockholders' equity Total liabilities and stockholders' equity Refer to Notes to Consolidated Financial Statements $ 182,789 79,302 77,482 22,223 48,274 12,711 40,901 463,682 $ 191,146 44,894 78,567 33,110 47,888 12,989 50,529 459,093 50,104 4,566 42,518 97,188 54,516 10,456 33,097 98,089 2.496 590,620 (29,868) 1,659,267 (1.171,339) 1,051,376 $ 1.612,246 2,496 569,675 (9,944) 1.543,085 (965,566) 1,139,746 $1,698,908 2015 Annual Report 31 AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Operations For the Year Ended January 30, January 31, February 1. in thousands, except per share amounts) 2016 2015 2014 Total net revenue $3,521,848 $3,282,667 53,305, 802 Cost of sales, including certain buying occupancy and warehoung expenses 2.219,114 2,128,193 2,191.803 Gross prolit 1,302,734 1,154,874 1,113.999 Seling. general and administrative expenses 834,700 806,498 796,505 Restructuring charges 17.752 Loss on Impairment of assets 33,468 44,465 Depreciation and amortization expense 14B, 156 141,191 131,974 Operating income 319,78 155,765 141,055 Other income, net 1,993 3.737 1,022 Income before income taxes 321,871 159,502 142.077 Provision for income taxes 108,580 70.715 59,094 Income from continuing operations 213,291 88,787 B2,983 Discontinued operations, net of tax 4.847 (8,465) Net income $ 218,138 $ 80,322 $ 82,983 Basic income per common share Income from contnuing operations $ 1.10 $ 0.46 $ 0.43 Discontinued operations 0.02 (0.04) Basic net income per common share 5 1.12 $ 0.42 S 0.43 Diluted income per common share: Income from continuing operations $ 1.09 S 0.46 $ 043 Discontinued operations 0 02 (0.04) Diuled net income per common share $ $ 0.42 $ 043 Weighted average common shares outstanding-basic 194,351 194,437 192.802 Weighted average common shares outstanding-diluted 195,237 195,135 194,475 Refer to Notes to Consolidated Financial Statements 1.11 32 | AMERICAN EAGLE OUTFITTERS, INC. AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Stockholders' Equity 7.741 Acoumulated Other (In thousands, except per share Sharos Common Contributed Retained Treasury Comprehensive Stockholders! amounts) Outstanding Stock Capital Earnings Stock Income (Loss) Equity Balance at February 2, 2013 192,804 S2,496 5627,065 $1,553,058 $ 990,729) $ 29,297 $1,221,187 Stock awards 1,184 1,184 Repurchase of common stock as part of publicly announced programs (1.600) (33.051) (33.051) Repurchase of common stock from employees (1.059) (23,385) (23,385) Reissuance of treasury stock 3.204 (56.706) 6,090 55,831 5,215 Net income B2,993 82,983 Other comprehensive loss (17.140) (17,140) Cash dividends and dividend equivalents (50.375 per share) 1,465 (72,280) (70,815) Balance at February 1, 2014 193,149 $2,496 $573,008 $1,569,851 S (991,334) S 12,157 $1,188,178 Stock awards 12,372 12,372 Repurchase of common stock as part of publicly announced programs Repurchase of common stock from employees (517) (7.464) (7.464) Reissuance of treasury stock 1,884 (17,988) (7,503) 33.232 Net income 80.322 80,322 Other comprehensive loss (22,101) (22 101) Cash dividends and dividend equivalents (50.50 per share) 2 283 (99,585) (97,302) Balance at January 31, 2015 194,516 S2,496 5569,675 $1,543,085 S (965,566) S (9.944) $1,139,746 Stock awards 31.937 31,837 Repurchase of common stock as part of publicly announced programs (15,563) (227,071) (227,071) Repurchase of common stock from employees (5,163) (5.163) Reissuance of treasury stock 1.506 (13.237) (2.332) 26.461 10.992 Net income 218, 138 218,138 Other comprehensive loss (19,924) (19,924) Cash dividends and dividend equivalents (50.50 per share) 2.445 (99.624) (97, 179) Balance at January 30, 2016 180,135 $2,496 $590,820 $1,659,267 S[1,171,339) S(29,868) $1,051,378 600.000 authorized, 249.566 issued and 160. 135 outstanding. So 01 par value common stock at January 30, 2016, 600,000 authorized 249.565 issued and 194 516 outstanding 5001 par value common stock at January 31, 2015 600.000 authorized 249,566 issued and 193.149 outstanding. 50.01 par value common stock at February 1, 2014 The Company has 5000 authorized, with none sued Outstanding, 8001 par value preferred stock at January 30, 2018 January 31, 2015 and February 1, 2014 89,431 shares. 55.050 shares, and 56,417 shares at January 30, 2016, January 31, 2015 and February 1, 2014. respectively During Fisca 2015, Fiscal 2014, and Fiscal 2013. 1.506 shares 1884 shares, and 3.204 shares, respectively, we e ressed from treasury stock for the issuance of share-based payments Refer to Notes to Consolidated Financial Statements 34 | AMERICAN EAGLE OUTFITTERS, INC. - (324) AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Cash Flows 24,826 For the Year Ended January 30, January 31, February 1 fin thousands) 2016 2015 2014 Operating activities Net Income $ 218,138 $ 80,322 $ 32,983 (Gain) loss from discontinued operations.net of tax (4,847) 8,465 Income from continuing operations $213.291 $ 89,787 S 82,983 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 149,658 142,351 134,047 Share-based compensation 34,977 16,070 (6,541) Deferred income taxon 4,680 (2.279) 20,100 Foreign currency transaction loss (gain) 2.977 (495) 1,378 Loss on impairment of assets 33.468 44,465 Gain on sale of assets (9,422) Changes in assets and linbilities Merchandise inventory (22,259) 8.596 40,148 Accounts receivable (10,093) 3.084 (29,511) Prepaid expenses and other (7.027) 14,292 (10,844) Other assets (10,017) 6.612 (36,089) Accounts payable (3,189) (5.280) 28,588 Unredeemed gilt cards and gilt certificates 755 1.238 1.289 Deferred lease credits (4,099) (4.528) 583 Accrued compensation and payroll taxes 34,234 20.716 (42,465) Accrued income and other taxes (17,615) (25,840) Accrued liabilities (14,133) (9.012) 27,605 Total adjustments 128.627 249.639 146,873 Net cash provided by operating activities from continuing operations 341.910 338,425 229,856 Investing activities: Capital expenditures for property and equipment (153,256) (245,002) (278,499) Acquisitions and purchase of long-lived assets in business combination (10,442) (20.751) Proceeds from sale of assets 12.579 Acquisition of intangible assets (2.382) (1,264) (6,835) Purchase of available for sale securities (52065) Sale of available for sale securities 10,002 162.785 Net cash used for investing activities from continuing operations (153,501) (236,264) (195,365) Financing activities: Payments on capital leases and other (7.635) (7.143) (2,830) Repurchase of common stock as part of publicly announced programs (227.071) (33,051) Repurchase of common stock from employees (5.163) (7,484) (23.386) Net proceeds from stock options exercised 7.283 7.305 6,197 Excess tax benefit from share-based payments 742 2,830 Cash dividends paid (97237) (97.224) (72.280) Net cash used for financing activities from continuing operations (329,106) (103,784) (116,526) Ellect al exchange rates on cash (3076) 17.578) (8.151) Cash flows of discontinued operations Nel cash (used for provided by operating activities (6.805) 963 Net cash used for investing activities Net cash used for financing activities Effect of exchange rates on cash Net cash (used for provided by discontinued operations (6,805) 963 Net decrease in cash and cash equivalents (150,630) (8,237) (90,166) Cash and cash equivalents - beginning of period $ 410,697 $ 418,933 $509,119 Cash and cash equivalents -- end of period $ 260,067 $ 410.89 $ 418,833 Refer to Notes to Consolidated Financial Statements 2015 Annual Report 35 Table of Contents AMERICAN EAGLE OUTFITTERS, INC. CONSOLIDATED BALANCE SHEETS January 31, 2015 February 1, 2014 $ 410,697 278,972 67,894 73,848 59,102 890,513 694,856 47,206 13,096 14,035 37,202 $1,696,908 $ 418,933 10,002 291,541 73,882 88,155 45,478 927,991 632,986 49.271 13,530 24,835 45,551 $1,694,164 (In thousands, except per share amounts) Assets Current assets: Cash and cash equivalents Short-term investments Merchandise inventory Accounts receivable Prepaid expenses and other Deferred income taxes Total current assets Property and equipment, at cost, net of accumulated depreciation Intangible assets, at cost, net of accumulated amortization Goodwill Non-current deferred income taxes Other assets Total assets 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, S0.01 par value; 5,000 shares authorized; none issued and outstanding Common stock, $0.01 par value; 600,000 shares authorized; 249,566 shares issued: 194,516 and 193,149 shares outstanding, respectively Contributed capital Accumulated other comprehensive income Retained earnings Treasury stock, 55,050 and 56,417 shares, respectively, at cost Total stockholders' equity Total liabilities and stockholders' equity $ 191,146 44,884 78,567 33,110 47,888 12,969 50,529 459,093 $ 203,872 23,560 76,397 5,778 47,194 13,293 45,384 415,478 54,516 10,456 33,097 98,069 59,510 16,543 36,455 112,508 2,496 569,675 (9,944) 1,543,085 (965,566) 1,139,746 $1,696,908 2,496 573,008 12,157 1,569,851 (991,334) | 1,166,178 $1,694,164 Table of Contents AMERICAN EAGLE OUTFITTERS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS For the Years Ended February 1, 2014 $3,305,802 2,191,803 1,113,999 796,505 February 2, 2013 $3,475,802 2,085,480 1,390,322 834,601 January 31, 2015 $3,282,867 2,128,193 1,154,674 806,498 17,752 33,468 141,191 155,765 3,737 159,502 70,715 88,787 (8,465) 80.322 (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 Restructuring charges Loss on impairment of assets Depreciation and amortization expense Operating income Other income, net Income before income taxes Provision for income taxes Income from continuing operations Loss from discontinued operations, net of tax Net income Basic income per common share: Income from continuing operations Loss from discontinued operations Basic net income per common share Diluted income per common share: Income from continuing operations Loss from discontinued operations Diluted net income per common share Weighted average common shares outstanding basic Weighted average common shares outstanding - diluted 44,465 131,974 141,055 1,022 142,077 59,094 82,983 34,869 126,246 394,606 7,432 402,038 137,940 264,098 (31,990) $ 232,108 $ 82.983 $ 0.43 $ 0.46 (0.04) 0.42 1.35 (0.16 1.19 S $ 0.43 $ S $ 0.43 $ 0.46 (0.04) 0.42 194,437 195,135 $ 0.43 $ 1.32 (0.16) 1.16 196,211 200,665 192,802 194,475 2015 Item 6. Selected Consolidated Financial Data. The following Selected Consolidated Financial Data should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations, included under Item 7 below and the Consolidated Financial Statements and Notes thereto, included in ltem a below. Most of the selected Consolidated Financial Statements data presented below is derived from our Consolidated Financial Statements if applicable, which are fied in response to ltem & below. The selected Consolidated Statement of Operations data for the years ended February 2, 2013 and January 28, 2012 and the selected Consolidated Balance Sheet data as of February 1, 2014 February 2, 2013 and January 28, 2012 are derived from audited Consolidated Financial Statements not included herein For the Years Ended In thousands, except per share amounts, ratlos and other January 30, January 31, February 1, February 2, January 28, financial information) 2016 2014 2013 2012 Summary of Operations Total net revenue $3,521,848 $3,282,867 53,305,802 53,475,202 $3,120,065 Comparable sales increase (decrease) 7% (57% (6)% 9% 4% Gross profit $1,302,734 $1,154,674 $1,113,999 $1,390,322 $1,144,594 Gross prolit as a percentage of net sales 37.0% 352% 33.7% 40.0% 38.7% Operating income $ 319,878 S 155,766 S 141,055 $ 394.606 $ 269,335 Operating income as a percentage of net sales 9.1% 4.7% 11.4% 8.6% Income from continuing operations $ 213.291 S 88,787 $ 82,983 S 264,098 $ 175,279 Income from continuing operations as a percentage of nel sales 61% 26% 2.5% 76% 5.6% Per Share Results Income from continuing operations per common share-basic $ 1.10 S 0.46 S 0.43S 1.35 $ 0.90 Income from continuing operations per common share-diluted $ 1.09 $ 046 $ 0.43 $ 1.32 S 0.89 Weighted average common shares outstanding - basic 194,351 194,437 192,802 196,211 194,445 Weighted average common shares outstanding diluted 196,237 195,135 194,475 200,665 196,314 Cash dividends per common share $ 0.50 $ 0.50 $ 0.38 $ 2.05 S 0.44 Balance Shoot Information Total cash and short-term investments $ 260,067 $ 410,697 $ 428,935 $630,992 S 745044 Long-term investments 3 $ $ s 847 Total assets $1,612,246 $1,696,908 $1,694,164 $1,756,053 $1,950,802 Short-term debt $ $ Long-term debt $ $ $ $ Stockholders' equity $1,051,376 $1,139,746 $1,166,178 $1,221,187 $1.416,851 Working capital $ 239,693 $368.947 $ 462.604 $ 647.668 $ 833,326 Current ratio 1.56 1.60 2.11 2.49 3.06 Average return on stockholders' equity 19.9% 70% 7.0% 17.6% 11.0% Other Financial Information Total stores at year-end 1,047 1,056 1,066 1.044 1,080 Capital expenditures $ 153.256 S 245,002 $ 278,499 S 93,939 $ 89,468 Net sales per average selling square foot S 545 $ 525 S 547 $ 602 $ 547 Total selling square leet at end of period 5,285,025 5.294,744 5,205,948 4,982.923 5,028.493 Net sales per average gross square foot $ 436 $ 420 $ 444 S 489 $ 438 Total gross square feet at end of period 6,601,112 6,613,100 6,504,486 6,023,278 6.290,284 Number of employees at end of period 37,800 38,000 40,400 40,100 39,800 2015 Annual Report 15 AMERICAN EAGLE OUTFITTERS, INC. Consolidated Balance Sheets January 30, 2016 January 31, 2015 $ 260,067 305,176 80,912 77,218 723,375 703,586 51 832 17,186 64.927 51,340 $ 1.612.246 $ 410,697 278,972 67,894 70.477 528,040 698 227 47,206 13.096 73.137 37,202 $1.696.908 (in thousands, except per share amounts) Assets Current assets: Cash and cash equivalents Merchandise inventory Accounts receivable Prepaid expenses and other Total current assets Property and equipment, at cost, net of accumulated depreciation Intangible assets, al cost, net of accumulated amortization Goodwill Deferred income taxes Other assets Total assets 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 liablities: Deferred loose credits Non-current accrued income taxes Other non-current liabilities Total non-current liabilities Commitments and contingencies Stockholders' equity Preferred stock, 30.01 par value: 5,000 shares authorized: none issued and outstanding Common stock. $0.01 par value, 600,000 shares authorized: 249,566 shares issued: 180,135 and 194,516 shares outstanding, respectively Contributed capital Accumulated other comprehensive loss, net of tax Retained earnings Treasury stock. 69,431 and 55,050 shares, respectively, at cost Total stockholders' equity Total liabilities and stockholders' equity Refer to Notes to Consolidated Financial Statements $ 182,789 79,302 77,482 22,223 48,274 12,711 40,901 463,682 $ 191,146 44,894 78,567 33,110 47,888 12,989 50,529 459,093 50,104 4,566 42,518 97,188 54,516 10,456 33,097 98,089 2.496 590,620 (29,868) 1,659,267 (1.171,339) 1,051,376 $ 1.612,246 2,496 569,675 (9,944) 1.543,085 (965,566) 1,139,746 $1,698,908 2015 Annual Report 31 AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Operations For the Year Ended January 30, January 31, February 1. in thousands, except per share amounts) 2016 2015 2014 Total net revenue $3,521,848 $3,282,667 53,305, 802 Cost of sales, including certain buying occupancy and warehoung expenses 2.219,114 2,128,193 2,191.803 Gross prolit 1,302,734 1,154,874 1,113.999 Seling. general and administrative expenses 834,700 806,498 796,505 Restructuring charges 17.752 Loss on Impairment of assets 33,468 44,465 Depreciation and amortization expense 14B, 156 141,191 131,974 Operating income 319,78 155,765 141,055 Other income, net 1,993 3.737 1,022 Income before income taxes 321,871 159,502 142.077 Provision for income taxes 108,580 70.715 59,094 Income from continuing operations 213,291 88,787 B2,983 Discontinued operations, net of tax 4.847 (8,465) Net income $ 218,138 $ 80,322 $ 82,983 Basic income per common share Income from contnuing operations $ 1.10 $ 0.46 $ 0.43 Discontinued operations 0.02 (0.04) Basic net income per common share 5 1.12 $ 0.42 S 0.43 Diluted income per common share: Income from continuing operations $ 1.09 S 0.46 $ 043 Discontinued operations 0 02 (0.04) Diuled net income per common share $ $ 0.42 $ 043 Weighted average common shares outstanding-basic 194,351 194,437 192.802 Weighted average common shares outstanding-diluted 195,237 195,135 194,475 Refer to Notes to Consolidated Financial Statements 1.11 32 | AMERICAN EAGLE OUTFITTERS, INC. AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Stockholders' Equity 7.741 Acoumulated Other (In thousands, except per share Sharos Common Contributed Retained Treasury Comprehensive Stockholders! amounts) Outstanding Stock Capital Earnings Stock Income (Loss) Equity Balance at February 2, 2013 192,804 S2,496 5627,065 $1,553,058 $ 990,729) $ 29,297 $1,221,187 Stock awards 1,184 1,184 Repurchase of common stock as part of publicly announced programs (1.600) (33.051) (33.051) Repurchase of common stock from employees (1.059) (23,385) (23,385) Reissuance of treasury stock 3.204 (56.706) 6,090 55,831 5,215 Net income B2,993 82,983 Other comprehensive loss (17.140) (17,140) Cash dividends and dividend equivalents (50.375 per share) 1,465 (72,280) (70,815) Balance at February 1, 2014 193,149 $2,496 $573,008 $1,569,851 S (991,334) S 12,157 $1,188,178 Stock awards 12,372 12,372 Repurchase of common stock as part of publicly announced programs Repurchase of common stock from employees (517) (7.464) (7.464) Reissuance of treasury stock 1,884 (17,988) (7,503) 33.232 Net income 80.322 80,322 Other comprehensive loss (22,101) (22 101) Cash dividends and dividend equivalents (50.50 per share) 2 283 (99,585) (97,302) Balance at January 31, 2015 194,516 S2,496 5569,675 $1,543,085 S (965,566) S (9.944) $1,139,746 Stock awards 31.937 31,837 Repurchase of common stock as part of publicly announced programs (15,563) (227,071) (227,071) Repurchase of common stock from employees (5,163) (5.163) Reissuance of treasury stock 1.506 (13.237) (2.332) 26.461 10.992 Net income 218, 138 218,138 Other comprehensive loss (19,924) (19,924) Cash dividends and dividend equivalents (50.50 per share) 2.445 (99.624) (97, 179) Balance at January 30, 2016 180,135 $2,496 $590,820 $1,659,267 S[1,171,339) S(29,868) $1,051,378 600.000 authorized, 249.566 issued and 160. 135 outstanding. So 01 par value common stock at January 30, 2016, 600,000 authorized 249.565 issued and 194 516 outstanding 5001 par value common stock at January 31, 2015 600.000 authorized 249,566 issued and 193.149 outstanding. 50.01 par value common stock at February 1, 2014 The Company has 5000 authorized, with none sued Outstanding, 8001 par value preferred stock at January 30, 2018 January 31, 2015 and February 1, 2014 89,431 shares. 55.050 shares, and 56,417 shares at January 30, 2016, January 31, 2015 and February 1, 2014. respectively During Fisca 2015, Fiscal 2014, and Fiscal 2013. 1.506 shares 1884 shares, and 3.204 shares, respectively, we e ressed from treasury stock for the issuance of share-based payments Refer to Notes to Consolidated Financial Statements 34 | AMERICAN EAGLE OUTFITTERS, INC. - (324) AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Cash Flows 24,826 For the Year Ended January 30, January 31, February 1 fin thousands) 2016 2015 2014 Operating activities Net Income $ 218,138 $ 80,322 $ 32,983 (Gain) loss from discontinued operations.net of tax (4,847) 8,465 Income from continuing operations $213.291 $ 89,787 S 82,983 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 149,658 142,351 134,047 Share-based compensation 34,977 16,070 (6,541) Deferred income taxon 4,680 (2.279) 20,100 Foreign currency transaction loss (gain) 2.977 (495) 1,378 Loss on impairment of assets 33.468 44,465 Gain on sale of assets (9,422) Changes in assets and linbilities Merchandise inventory (22,259) 8.596 40,148 Accounts receivable (10,093) 3.084 (29,511) Prepaid expenses and other (7.027) 14,292 (10,844) Other assets (10,017) 6.612 (36,089) Accounts payable (3,189) (5.280) 28,588 Unredeemed gilt cards and gilt certificates 755 1.238 1.289 Deferred lease credits (4,099) (4.528) 583 Accrued compensation and payroll taxes 34,234 20.716 (42,465) Accrued income and other taxes (17,615) (25,840) Accrued liabilities (14,133) (9.012) 27,605 Total adjustments 128.627 249.639 146,873 Net cash provided by operating activities from continuing operations 341.910 338,425 229,856 Investing activities: Capital expenditures for property and equipment (153,256) (245,002) (278,499) Acquisitions and purchase of long-lived assets in business combination (10,442) (20.751) Proceeds from sale of assets 12.579 Acquisition of intangible assets (2.382) (1,264) (6,835) Purchase of available for sale securities (52065) Sale of available for sale securities 10,002 162.785 Net cash used for investing activities from continuing operations (153,501) (236,264) (195,365) Financing activities: Payments on capital leases and other (7.635) (7.143) (2,830) Repurchase of common stock as part of publicly announced programs (227.071) (33,051) Repurchase of common stock from employees (5.163) (7,484) (23.386) Net proceeds from stock options exercised 7.283 7.305 6,197 Excess tax benefit from share-based payments 742 2,830 Cash dividends paid (97237) (97.224) (72.280) Net cash used for financing activities from continuing operations (329,106) (103,784) (116,526) Ellect al exchange rates on cash (3076) 17.578) (8.151) Cash flows of discontinued operations Nel cash (used for provided by operating activities (6.805) 963 Net cash used for investing activities Net cash used for financing activities Effect of exchange rates on cash Net cash (used for provided by discontinued operations (6,805) 963 Net decrease in cash and cash equivalents (150,630) (8,237) (90,166) Cash and cash equivalents - beginning of period $ 410,697 $ 418,933 $509,119 Cash and cash equivalents -- end of period $ 260,067 $ 410.89 $ 418,833 Refer to Notes to Consolidated Financial Statements 2015 Annual Report 35
