Return on Invested Capital (“ROIC”) (Non-GAAP financial measure) We believe that ROIC is a useful financial measure for investors in evaluating the efficiency and effectiveness of our use of capital and  believe ROIC is an important component of shareholders’ return over the long term. In addition, we incorporate ROIC in our executive  incentive compensation measures. For the 12 fiscal months ended January 31, 2015, our ROIC decreased to 12.6% compared with 13.6%  for the 12 fiscal months ended February 1, 2014. Our ROIC decreased compared with the prior year primarily due to the acquisition of Trunk  Club in addition to ongoing store expansion and increased technology investments. ROIC is not a measure of financial performance under generally accepted accounting principles (“GAAP”) and should be considered in  addition to, and not as a substitute for, return on assets, net earnings, total assets or other financial measures prepared in accordance with  GAAP. Our method of determining non-GAAP financial measures may differ from other companies’ methods and therefore may not be  comparable to those used by other companies. The financial measure calculated under GAAP which is most directly comparable to ROIC is  return on assets. The following is a reconciliation of the components of ROIC and return on assets: 2  Based upon our effective tax rate multiplied by the net operating profit for the 12 fiscal months ended January 31, 2015, February 1, 2014, February 2, 2013, January 28, 2012  and January 29, 2011. 3  Based upon the trailing 12-month average. 4  Based upon the trailing 12-month average for accounts payable, accrued salaries, wages and related benefits, and other current liabilities. 5  Based upon the trailing 12-month average of the monthly asset base. The asset base for each month is calculated as the trailing 12 months of rent expense multiplied by eight.  The multiple of eight times rent expense is a commonly used method of estimating the asset base we would record for our capitalized operating leases described in footnote 1. 26 12 Fiscal months ended January 31, 2015 February 1, 2014 February 2, 2013 January 28, 2012 January 29, 2011 Net earnings $720 $734 $735 $683 $613 Add: income tax expense 465 455 450 436 378 Add: interest expense 139 162 162 132 128 Earnings before interest and income tax expense 1,324 1,351 1,347 1,251 1,119 Add: rent expense 137 125 105 78 62 Less: estimated depreciation on  capitalized operating leases 1 (74) (67) (56) (42) (32) Net operating profit 1,387 1,409 1,396 1,287 1,149 Less: estimated income tax expense 2 (544) (539) (530) (501) (439) Net operating profit after tax $843 $870 $866 $786 $710 Average total assets 3 $8,860 $8,398 $8,274 $7,890 $7,091 Less: average non-interest-bearing  current liabilities 4 (2,730) (2,430) (2,262) (2,041) (1,796) Less: average deferred property  incentives 3 (502) (489) (494) (504) (487) Add: average estimated asset base of  capitalized operating leases 5 1,058 929 724 555 425 Average invested capital $6,686 $6,408 $6,242 $5,900 $5,233 Return on assets 8.1% 8.7% 8.9% 8.7% 8.6% ROIC 12.6% 13.6% 13.9% 13.3% 13.6% 1  Capitalized operating leases is our best estimate of the asset base we would record for our leases that are classified as operating if they had met the criteria for a capital lease  or we had purchased the property. Asset base is calculated as described in footnote 5 below.