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Table of Contents
43
The decrease in cash provided by operating activities in fiscal 2014 (12-month) compared to fiscal 2013 (11-month) was
primarily due to increased cash outflows for accounts payable, partially offset by improved inventory management and
increased cash inflow from receivables.
Investing Activities
The increase in cash used in investing activities in fiscal 2015 compared to fiscal 2014 was primarily due to increased
purchases of short-term investments in fiscal 2015.
The decrease in cash used in investing activities in fiscal 2014 (12-month) compared to fiscal 2013 (11-month) was primarily
due to lower capital expenditures and proceeds from the disposition of mindSHIFT, partially offset by purchases of short-term
investments in fiscal 2014 (12-month).
Financing Activities
The decrease in cash provided by financing activities in fiscal 2015 compared to fiscal 2014 was primarily due to decreased
borrowing and decreased proceeds from the issuance of common stock, primarily from the exercise of employee stock options.
The increase in cash provided by financing activities in fiscal 2014 (12-month) compared to fiscal 2013 (11-month) was
primarily due to increased borrowing, increased proceeds from the issuance of common stock, primarily from the exercise of
employee stock options, and the lack of share repurchases in fiscal 2014 (12-month).
Sources of Liquidity
Funds generated by operating activities, available cash and cash equivalents, short-term investments and our credit facilities are
our most significant sources of liquidity. We believe our sources of liquidity will be sufficient to sustain operations and to
finance anticipated capital investments and strategic initiatives. However, in the event our liquidity is insufficient, we may be
required to limit our spending. There can be no assurance that we will continue to generate cash flows at or above current levels
or that we will be able to maintain our ability to borrow under our existing credit facilities or obtain additional financing, if
necessary, on favorable terms.
On June 30, 2014, we entered into a new $1.25 billion five-year senior unsecured revolving credit facility (the "Five-Year
Facility Agreement") with a syndicate of banks that expires in June 2019. The Five-Year Facility Agreement replaced the
previous $1.5 billion unsecured revolving credit facility, which was originally scheduled to expire in October 2016, but was
terminated on June 30, 2014. At January 31, 2015, we had no borrowings outstanding under the Five-Year Facility Agreement.
Refer to Note 5, Debt, of the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and
Supplementary Data, of this Annual Report on Form 10-K for further information about our credit facilities.
Our ability to access our revolving credit facility under the Five-Year Facility Agreement is subject to our compliance with the
terms and conditions of the facility, including financial covenants. The financial covenants require us to maintain certain
financial ratios. At January 31, 2015, we were in compliance with all such financial covenants. If an event of default were to
occur with respect to any of our other debt, it would likely constitute an event of default under our facilities as well.
An interest coverage ratio represents the ratio of pre-tax earnings before fixed charges (interest expense and the interest portion
of rent expense) to fixed charges. Our interest coverage ratio, calculated as reported in Exhibit No. 12.1 of this Annual Report
on Form 10-K, was 5.08 and 4.06 in fiscal 2015 and fiscal 2014, respectively.
Our credit ratings and outlooks at March 23, 2015, are summarized below. On September 3, 2014, Fitch Ratings Limited
("Fitch") upgraded its long-term credit rating from BB- to BB with a Stable outlook. On July 2, 2014, Moody's Investors
Service, Inc. ("Moody's") reaffirmed its Baa2 long-term credit rating and changed its outlook from Negative to Stable. The
rating and outlook from Standard & Poor's Rating Services ("Standard & Poor's") remain consistent with those disclosed in our
Annual Report on Form 10-K for the fiscal year ended February 1, 2014.
Rating Agency Rating Outlook
Standard & Poor's BB Stable
Moody's Baa2 Stable
Fitch BB Stable