Saks (SKS)

Cash used in investing activities from continuing operations was $128.6
million in 2007, $123.5 million in 2006 and $116.9 million in 2005. Cash used in investing activities principally consists of construction of new stores and renovation and expansion of existing stores and investments in support areas (e.g.,
technology and distribution centers). The $5.1 million increase in cash used in 2007 is primarily related to an increase in capital expenditures of approximately $17.3 million, partially offset by the increase in proceeds from the sale of SFA

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property of approximately $12.2 million. The $6.6 million increase in net cash used in 2006 is primarily due to proceeds received from the sale of property
and equipment in 2005 that was non-recurring in nature.

Cash
used in financing activities from continuing operations was $119.6 million in 2007, $1,041.2 million in 2006 and $762.2 million in 2005. The 2007 use relates to the repurchase of approximately $106.3 million in principal amount of senior notes. The
2006 use primarily relates to the payment of cash dividends totaling $1,095.0 million, while the 2005 use primarily relates to the repurchase of approximately $607.1 million in principal amount of senior notes due to the completion of the tender
offers and consent solicitations.

On March 6, 2006, the
Company’s Board of Directors declared a cash dividend of $4.00 per common share totaling approximately $547.5 million, and the Company reduced shareholders’ equity by that amount. Approximately $539.0 million of the dividend was paid on
May 1, 2006 to shareholders of record as of April 14, 2006. The remaining portion of the dividend payable will be paid prospectively as, and to the extent, awards of restricted stock and performance shares vest.