2K Sports 2004 Annual Report Download - page 46

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TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands)
Years Ended October 31,
2004 2003 2002
Cash flows from operating activities:
Net income ....................................................... $ 65,378 $ 98,118 $ 71,563
Adjustment to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization ................................. 16,846 12,516 10,829
Impairment of intellectual property and technology ............ — 7,892 —
Non-cash charges for consolidation of distribution facilities .... — 5,474 —
Provision for deferred taxes .................................... (12,693) 13,040 6,726
Provision for sales allowances ................................. 196,287 120,329 72,096
Provision for doubtful accounts ................................ 4,395 4,322 2,405
Amortization of various expenses and discounts ............... 19,801 9,301 6,262
Write off of prepaid royalties and capitalized software ......... 8,772 9,588 15,616
Tax benefit from exercise of stock options ...................... 4,136 20,858 10,700
Compensatory stock and stock options ......................... 3,331 3,445 3,053
Other ........................................................... (1,899) (2,260) (895)
Changes in operating assets and liabilities, net of effects
of acquisitions:
Increase in accounts receivable ................................. (322,438) (185,611) (87,100)
Increase in inventories ......................................... (50,532) (25,146) (12,852)
Increase in prepaid royalties ................................... (27,865) (10,764) (8,157)
Increase in prepaid expenses and other current assets .......... (11,397) (7,423) (3,034)
Increase in capitalized software development costs ............. (12,802) (5,152) (895)
(Increase) decrease in other non-current assets ................. (1,301) — 257
Increase in accounts payable ................................... 62,277 20,148 23,019
Increase in accrued expenses and other current liabilities ...... 57,614 4,445 33,834
Increase (decrease) in income taxes payable ................... 22,548 (12,492) 1,571
Net cash provided by operating activities ...................... 20,458 80,628 144,998
Cash flows from investing activities:
Purchase of fixed assets ........................................ (21,586) (15,464) (10,466)
Sale of investments ............................................ — 114 6,170
Acquisitions, net of cash acquired .............................. (39,336) (27,973) (3,788)
Acquisition of intangible assets ................................ (3,500) (2,075) (10,000)
Other investing activities ....................................... — (483) —
Net cash used in investing activities ........................... (64,422) (45,881) (18,084)
Cash flows from financing activities:
Net repayments under lines of credit ........................... — — (54,284)
Proceeds from exercise of stock options and warrants ......... 16,683 44,865 23,308
Other financing activities ....................................... (368) (303) (1,012)
Net cash provided by (used in) financing activities ............... 16,315 44,562 (31,988)
Effect of foreign exchange rates .................................... (733) (4,201) 7,387
Net (decrease) increase in cash for the period .................... (28,382) 75,108 102,313
Cash and cash equivalents, beginning of the period.................. 183,477 108,369 6,056
Cash and cash equivalents, end of the period ....................... $ 155,095 $ 183,477 $ 108,369
The accompanying notes are an integral part of these consolidated financial statements.
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