American Eagle Outfitters 2008 Annual Report Download - page 42

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AMERICAN EAGLE OUTFITTERS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
January 31,
2009
February 2,
2008
February 3,
2007
For the Years Ended
(In thousands)
Operating activities:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 179,061 $ 400,019 $ 387,359
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133,141 110,753 89,698
Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,296 33,670 36,556
Provision for deferred income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,469 (8,147) (27,572)
Tax benefit from share-based payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,121 7,260 25,465
Excess tax benefit from share-based payments . . . . . . . . . . . . . . . . . . . . . . . (693) (6,156) (19,541)
Foreign currency transaction (gain) loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,141) 1,221 687
Loss on impairment of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,713 592 —
Other-than-temporary impairment charge . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,889 — —
Proceeds from sale of trading securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 183,968
Changes in assets and liabilities:
Merchandise inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13,735) (19,074) (53,527)
Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,094) (5,660) 7,448
Prepaid expenses and other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24,781) (1,334) (4,204)
Other assets, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 390 (3,242) (5,357)
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,053) (15,559) 32,345
Unredeemed gift cards and gift certificates . . . . . . . . . . . . . . . . . . . . . . . . . . (11,392) (699) 11,623
Deferred lease credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,887 4,640 7,791
Accrued income and other taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (20,697) (31,416) 43,482
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19,188) (2,598) 33,047
Total adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123,132 64,251 361,909
Net cash provided by operating activities ........................... 302,193 464,270 749,268
Investing activities:
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (265,335) (250,407) (225,939)
Proceeds from sale of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 12,345
Purchase of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . (48,655) (1,772,653) (1,353,339)
Sale of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393,559 2,126,891 915,952
Other investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,180) (1,170) (140)
Net cash provided by (used for) investing activities .................... 78,389 102,661 (651,121)
Financing activities:
Payments on note payable and capital leases . . . . . . . . . . . . . . . . . . . . . . . . (2,177) (1,912) (3,020)
Proceeds from issuance of note payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000 — 2,025
Repurchase of common stock as part of publicly announced programs . . . . . . — (438,291) (146,485)
Repurchase of common stock from employees . . . . . . . . . . . . . . . . . . . . . . . (3,432) (12,310) (7,635)
Cash paid for fractional shares in connection with three-for-two stock split . . . — — (113)
Net proceeds from stock options exercised . . . . . . . . . . . . . . . . . . . . . . . . . . 3,799 13,183 28,447
Excess tax benefit from share-based payments . . . . . . . . . . . . . . . . . . . . . . . 693 6,156 19,541
Cash dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (82,394) (80,796) (61,521)
Net cash used for financing activities .............................. (8,511) (513,970) (168,761)
Effect of exchange rates on cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,790) 3,363 (178)
Net increase (decrease) in cash and cash equivalents................... 357,281 56,324 (70,792)
Cash and cash equivalents — beginning of period. . . . . . . . . . . . . . . . . . . . . . . 116,061 59,737 130,529
Cash and cash equivalents — end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 473,342 $ 116,061 $ 59,737
Refer to Notes to Consolidated Financial Statements
40