Barnes and Noble 2006 Annual Report Download - page 27

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CONSOLIDATED STATEMENTS OF CASH FLOWS
FISCAL YEAR (In thousands) 2006 2005 2004
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings $ 150,527 146,681 143,376
Net earnings from discontinued operations — — 20,001
Net earnings from continuing operations 150,527 146,681 123,375
Adjustments to reconcile net earnings to net cash fl ows from
operating activities
Depreciation and amortization
(including amortization of deferred fi nancing fees) 170,855 173,814 183,508
Stock-based compensation expense 17,146 3,566 48
Deferred taxes 1,368 1,925 21,285
Property and equipment impairment charge 3,411 12,656 —
Minority interest 1,788 1,686 1,230
Decrease in other long-term liabilities for tenant allowances and
scheduled rent increases (2,048) (8,596) (971)
Loss on disposal of property and equipment 1,207 3,542 1,919
Debt redemption charge (deferred fi nancing fees) — — 6,112
Changes in operating assets and liabilities, net (73,001) 164,467 195,935
Net cash fl ows from operating activities 271,253 499,741 532,441
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment (179,373) (187,167) (184,885)
Payments on GameStop note receivable 12,173 12,173 37,500
Net increase in other noncurrent assets (84) (1,289) (956)
Acquisition of consolidated subsidiaries, net of cash acquired — — (154,427)
Net cash fl ows from investing activities (167,284) (176,283) (302,768)
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of treasury stock (118,936) (282,746) (6,362)
Cash dividends paid to shareholders (39,910) (20,221) —
Proceeds from exercise of common stock options 19,735 62,143 34,043
Excess tax benefi t from stock-based compensation 12,551 — —
Dividend to minority interest (1,228) (700) —
Repayment of debt — (245,000) —
Proceeds from issuance of long-term debt — — 245,000
Redemption of convertible subordinated notes — — (286,497)
Net cash fl ows from fi nancing activities (127,788) (486,524) (13,816)
CASH FLOWS FROM DISCONTINUED OPERATIONS
Operating cash fl ows — — 25,284
Investing cash fl ows — — (79,280)
Financing cash fl ows (including cash at date of spin-off) — — (113,409)
Net cash fl ows from discontinued operations — — (167,405)
Net increase (decrease) in cash and cash equivalents (23,819) (163,066) 48,452
Cash and cash equivalents at beginning of year 372,586 535,652 487,200
Cash and cash equivalents at end of year $ 348,767 372,586 535,652
2006 Annual Report 25