Refer to the financial statements of American Eagle Outfitters in Appendix B and answer the following questions. (Hint: Use the notes to the financial statements for some of these questions.) Required: 1. How much did the company spend on property and equipment (capital expenditures) in fiscal year 2017 (the year ended February 3, 2018)? (Enter your answer in dollars.) 2. What is the typical estimated useful life of leasehold improvements for amortization purposes? 3. What was the original cost of fixtures and equipment held by the company at the end of the most recent reporting year? (Enter your answer in dollars.) 4a. What was the amount of depreciation expense on property and equipment for the current year? (Enter your answer in dollars.) 4b. What was the change in accumulated depreciation from fiscal year ended February 3, 2018, to fiscal year ended January 28, 2017 (Enter your answer in dollars.) 5. What is the company's fixed asset turnover ratio for fiscal year ended February 3, 2018? (Round your answer to 2 decimal places.) years or the term of the lease 1. Property and equipment 2. The estimated useful life of leasehold improvements is the lesser of 3 Cost of fixtures and equipment 4a. Current depreciation expense 4bAccumulated depreciation 5. Fixed asset turnover ratio 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 $ $ $ 236,703 54,324 83,312 12,781 52,347 11,203 34,551 485,221 246,204 54,184 78,619 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 capital 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 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 February 3, 2018 January 28, 2017 For the Years Ended (1) January 30, 2016 January 31, 2015 February 1 2014 $ 3,795,549 $ 3,609,865 4% 3% 1,370,505 $ 1,366,927 36.1% 37.9% 302,788 $ 331,476 $ 3,521,848 7% $ 1,302,734 37.0% $ 319,878 $ 3,282,867 (5)% $ 1,154,674 35.2% $ 155,765 $ 3,305,802 (6)% $ 1,113,999 33.7% $ 141,055 8.0% 204,163 9.2% 212,449 9.1 % 213,291 $ $ 4.7% 88,787 $ $ 4.3% 82,983 5.4% 5.9% 6.1% 2.6% 2.5% 1.15 $ 1.17 $ 1.10 $ 0.46 $ 0.43 1.13 $ 1.16 $ 1.09 S 0.46 $ 0.43 177,938 181,429 194,351 194,437 192,802 (In thousands, except per share amounts, ratios and other non-financial information) Summary of Operations (2) Total net revenue Comparable sales increase (decrease) (3) Gross profit Gross profit as a percentage of net sales Operating income Operating income as a percentage of net sales Income from continuing operations Income from continuing operations as a percentage of net sales Per Share Results Income from continuing operations per common share-basic Income from continuing operations per common share-diluted Weighted average common shares outstanding - basic Weighted average common shares outstanding - diluted Cash dividends per common share Balance Sheet Information Total cash and short-term investments Long-term investments Total assets Long & short-term debt Stockholders' equity Working capital Current ratio Average return on stockholders' equity (5) Other Financial Information (2) Total stores at year-end Capital expenditures Total net revenue per average selling square foot (4) Total seling square feet at end of period Total net revenue per average gross square foot (4) Total gross square feet at end of period Number of employees at end of period 180,156 0.50 183,835 0.50 196,237 0.50 195,135 0.50 194,475 0.38 $ $ $ 428,935 $ $ $ $ $ $ 1,694,164 413,613 $ 378,613 $ 1,816,313 $ 1,782,660 $ 1,246,791 $ 1,204,569 483,309 $ 407,446 2.00 1.83 16.7% 18.8% $ 260,067 $ $ 1,612,246 $ $ 1,051,376 $ 259,693 1.56 19.9% $ 410,697 $ $ 1,696,908 $ $ 1,139,746 S 368,947 1.80 7.0% $ $ $ $ $ S 1,166,178 462,604 2.11 7.0% 1,047 169,469 1,050 161,494 1,047 153,256 $ 1,066 278,499 $ $ 1,056 245,002 $ $ $ $ $ $ $ 514 5,278,554 534 5,311,659 545 5,285,025 525 5,294,744 547 5,205,948 $ $ $ S S 412 6,580,812 40,700 428 6,619,267 38,700 436 6,601,112 37.800 420 6,613, 100 38,000 444 6,503,486 40,400