ANF » Topics » Financing Activities

These excerpts taken from the ANF 10-K filed Mar 27, 2009.
Financing Activities
 
Cash outflows related to financing activities consisted primarily of the repurchase of the Company’s Common Stock and the payment of dividends in Fiscal 2008 and Fiscal 2007. In Fiscal 2006, cash outflows for financing activities related primarily to the payment of dividends and a change in outstanding checks. Cash inflows in Fiscal 2008 primarily related to proceeds from the borrowing under the Company’s unsecured credit agreement and proceeds from share-based compensation and the related excess tax benefits. Fiscal 2007 and Fiscal 2006 cash inflows consisted primarily of proceeds from share-based compensation and the


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related excess tax benefits. The Board of Directors will review the Company’s cash position and results of operations and address the appropriateness of future dividend amounts.
 
During Fiscal 2008, A&F repurchased approximately 0.7 million shares of A&F’s Common Stock with a value of approximately $50.0 million. During Fiscal 2007, A&F repurchased approximately 3.6 million shares of A&F’s Common Stock with a value of approximately $287.9 million. A&F did not repurchase any shares of A&F’s Common Stock during Fiscal 2006. Both the Fiscal 2008 and Fiscal 2007 repurchases were pursuant to A&F Board of Directors’ authorizations.
 
As of January 31, 2009, A&F had approximately 11.3 million shares available for repurchase as part of the August 15, 2005 and November 20, 2007 A&F Board of Directors’ authorizations to repurchase 6.0 million shares and 10.0 million shares, respectively, of A&F’s Common Stock.
 
The Company had $100.0 million outstanding under its unsecured credit agreement on January 31, 2009 and no borrowings outstanding under the credit agreement then in effect on February 2, 2008. The average interest rate for the fifty-two weeks ended January 31, 2009 was 3.1%. As of January 31, 2009, the Company had an additional $350 million available (less outstanding letters of credit) under its unsecured credit agreement. The unsecured credit agreement requires that the Leverage Ratio (as defined in the unsecured credit agreement) not be greater than 3.75 to 1.00 at any time. The Company’s Leverage Ratio was 2.13 as of January 31, 2009. The unsecured credit agreement also requires that the Coverage Ratio (as defined in the unsecured credit agreement) for A&F and its subsidiaries on a consolidated basis of (i) consolidated earnings before interest, taxes, depreciation, amortization and rent (“Consolidated EBITDAR”) for the trailing four-consecutive-fiscal-quarter period to (ii) the sum of, without duplication, (x) net interest expense for such period, (y) scheduled payments of long-term debt due within twelve months of the date of determination, and (z) the sum of minimum rent and contingent store rent, not be less than 2.00 to 1.00 at any time. The Company’s Coverage Ratio was 3.49 as of January 31, 2009. The unsecured credit agreement is more fully described in Note 13, “Debt” of the Consolidated Financial Statements in “ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA” of this Annual Report on Form 10-K.
 
Trade letters of credit totaling approximately $21.1 million and $61.6 million were outstanding on January 31, 2009 and February 2, 2008, respectively. Standby letters of credit totaling approximately $16.9 million and $14.5 million were outstanding on January 31, 2009 and February 2, 2008, respectively. The standby letters of credit are set to expire primarily during the fourth quarter of Fiscal 2009. To date, no beneficiary has drawn upon the standby letters of credit.
 
Financing
Activities



 



Cash outflows related to financing activities consisted
primarily of the repurchase of the Company’s Common Stock
and the payment of dividends in Fiscal 2008 and Fiscal 2007. In
Fiscal 2006, cash outflows for financing activities related
primarily to the payment of dividends and a change in
outstanding checks. Cash inflows in Fiscal 2008 primarily
related to proceeds from the borrowing under the Company’s
unsecured credit agreement and proceeds from share-based
compensation and the related excess tax benefits. Fiscal 2007
and Fiscal 2006 cash inflows consisted primarily of proceeds
from share-based compensation and the





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related excess tax benefits. The Board of Directors will review
the Company’s cash position and results of operations and
address the appropriateness of future dividend amounts.


 



During Fiscal 2008, A&F repurchased approximately
0.7 million shares of A&F’s Common Stock with a
value of approximately $50.0 million. During Fiscal 2007,
A&F repurchased approximately 3.6 million shares of
A&F’s Common Stock with a value of approximately
$287.9 million. A&F did not repurchase any shares of
A&F’s Common Stock during Fiscal 2006. Both the Fiscal
2008 and Fiscal 2007 repurchases were pursuant to A&F Board
of Directors’ authorizations.


 



As of January 31, 2009, A&F had approximately
11.3 million shares available for repurchase as part of the
August 15, 2005 and November 20, 2007 A&F Board
of Directors’ authorizations to repurchase 6.0 million
shares and 10.0 million shares, respectively, of
A&F’s Common Stock.


 



The Company had $100.0 million outstanding under its
unsecured credit agreement on January 31, 2009 and no
borrowings outstanding under the credit agreement then in effect
on February 2, 2008. The average interest rate for the
fifty-two weeks ended January 31, 2009 was 3.1%. As of
January 31, 2009, the Company had an additional
$350 million available (less outstanding letters of credit)
under its unsecured credit agreement. The unsecured credit
agreement requires that the Leverage Ratio (as defined in the
unsecured credit agreement) not be greater than 3.75 to 1.00 at
any time. The Company’s Leverage Ratio was 2.13 as of
January 31, 2009. The unsecured credit agreement also
requires that the Coverage Ratio (as defined in the unsecured
credit agreement) for A&F and its subsidiaries on a
consolidated basis of (i) consolidated earnings before
interest, taxes, depreciation, amortization and rent
(“Consolidated EBITDAR”) for the trailing
four-consecutive-fiscal-quarter period to (ii) the sum of,
without duplication, (x) net interest expense for such
period, (y) scheduled payments of long-term debt due within
twelve months of the date of determination, and (z) the sum
of minimum rent and contingent store rent, not be less than 2.00
to 1.00 at any time. The Company’s Coverage Ratio was 3.49
as of January 31, 2009. The unsecured credit agreement is
more fully described in Note 13, “Debt” of the
Consolidated Financial Statements in “ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA” of this Annual
Report on
Form 10-K.


 



Trade letters of credit totaling approximately
$21.1 million and $61.6 million were outstanding on
January 31, 2009 and February 2, 2008, respectively.
Standby letters of credit totaling approximately
$16.9 million and $14.5 million were outstanding on
January 31, 2009 and February 2, 2008, respectively.
The standby letters of credit are set to expire primarily during
the fourth quarter of Fiscal 2009. To date, no beneficiary has
drawn upon the standby letters of credit.


 




EXCERPTS ON THIS PAGE:

10-K (2 sections)
Mar 27, 2009
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