Kohl's 2014 Annual Report Download - page 22

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Table of Contents

The following table presents the primary cash requirements and sources of funds.


• Operational needs, including salaries,
rent, taxes and other costs of running
our business
• Capital expenditures
• Inventory (seasonal and new store)
• Share repurchases
• Dividend payments
• Cash flow from operations
• Short-term trade credit, in the form of extended
payment terms
• Line of credit under our revolving credit facility
Our working capital and inventory levels typically build throughout the fall, peaking during the November and December holiday selling season.
Share repurchases are discretionary and can be discontinued at any time should we require cash for other uses.
The following table includes cash balances and changes.

  
$ 971
$ 537

Operating activities  
$ 1,884
$ 1,265
Investing activities 
(623)
(660)
Financing activities
(827)
(1,273)
  
$ 1,127
$ 381
(a) See the Free Cash Flow discussion later in this Liquidity and Capital Resources section for additional discussion of this non-GAAP financial
measure.
Operating activities.
Cash provided by operations increased $140 million, or 7%, in 2014 to $2.0 billion.
Merchandise inventory decreased $60 million in 2014 to $3.8 billion. Inventory per store decreased 2% and units per store decreased 3% from 2013.
Accounts payable as a percent of inventory was 39.6% at January 31, 2015, compared to 35.2% at February 1, 2014. The increase reflects higher receipt
volume and timing of payments to some of our vendors.
Cash provided by operations increased $619 million to $1.9 billion in 2013. The increase was primarily due to reduced inventory growth and to lower
bonus and other payroll-related liability payments in 2013.
Investing activities.
Net cash used in investing activities decreased $30 million to $593 million in 2014.
Capital expenditures totaled $682 million in 2014, a $39 million increase over 2013. The increase in capital spending is primarily due to the
expansion of our corporate campus, increased IT spending and the purchase and build out of a call center in Texas, partially offset by decreased new store
spending.
Proceeds from sales of investments in auction rate securities totaled $82 million in 2014 and $1 million in 2013. All of our auction rate securities have
now been sold. Despite the non-liquid nature of these investments following market conditions that arose in 2008, we were able to sell substantially all of our
investments at par.
22