CarMax 2008 Annual Report Download - page 51

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39
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended February 29 or 28
(In thousands) 2008 2007 2006
OPERATING ACTIVITIES:
Net earnings ..........................................................................................
.
$ 182,025 $ 198,597 $ 134,220
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation and amortization...........................................................
.
46,615 34,551 26,692
Share-based compensation expense...................................................
.
33,467 31,826 21,632
Loss (gain) on disposition of assets...................................................
.
1,404 88 (764)
Deferred income tax benefit ..............................................................
.
(24,405) (14,169) (19,088)
Impairment of long-lived assets ........................................................
.
—4,891 —
Net (increase) decrease in:
Accounts receivable, net ................................................................
.
(1,815) 5,208 (454)
Auto loan receivables held for sale, net .........................................
.
1,178 (2,023) 18,013
Retained interest in securitized receivables ...................................
.
(68,459) (43,994) (10,345)
Inventory........................................................................................
.
(139,661) (166,416) (93,133)
Prepaid expenses and other current assets .....................................
.
(4,148) (3,857) 1,797
Other assets....................................................................................
.
1,360 (3,924) (5,975)
Net increase in:
Accounts payable, accrued expenses and other current liabilities
and accrued income taxes.........................................................
.
14,561 85,633 35,133
Deferred revenue and other liabilities ............................................
.
37,398 10,389 9,785
NET CASH PROVIDED BY OPERATING ACTIVITIES..........................................
.
79,520 136,800 117,513
INVESTING ACTIVITIES:
Capital expenditures..............................................................................
.
(253,106) (191,760) (194,433)
Proceeds from sales of assets ................................................................
.
1,089 4,569 78,340
(Purchases) sales of money market securities .......................................
.
(19,565) 16,765 —
Sales of investments available-for-sale .................................................
.
21,665 4,210 —
Purchases of investments available-for-sale..........................................
.
(7,100) (20,975) —
NET CASH USED IN INVESTING ACTIVITIES ...................................................
.
(257,017) (187,191) (116,093)
FINANCING ACTIVITIES:
Increase (decrease) in short-term debt, net............................................
.
17,727 2,827 (64,734)
Issuances of long-term debt ..................................................................
.
972,300 1,232,400 701,300
Payments on long-term debt..................................................................
.
(841,119) (1,244,762) (643,364)
Equity issuances, net.............................................................................
.
14,730 35,411 6,035
Excess tax benefits from share-based payment arrangements...............
.
7,369 22,211 3,978
NET CASH PROVIDED BY FINANCING ACTIVITIES ..........................................
.
171,007 48,087 3,215
(Decrease) increase in cash and cash equivalents.....................................
.
(6,490) (2,304) 4,635
Cash and cash equivalents at beginning of year .......................................
.
19,455 21,759 17,124
CASH AND CASH EQUIVALENTS AT END OF YEAR ..............................................
.
$ 12,965 $ 19,455 $ 21,759
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the year for:
Interest...............................................................................................
.
$ 9,768 $ 9,768 $ 7,928
Income taxes......................................................................................
.
$ 124,868 $ 99,380 $ 94,112
Non-cash investing and financing activities:
Asset acquisitions from capitalization of leases ................................
.
$ — $ — $ 7,864
Accrued capital expenditures.............................................................
.
$ 9,909 $ — $ —
Long-term debt obligations from capitalization of leases..................
.
$ — $ — $ 7,864
Reduction of long-term debt obligations from
capitalization of leases..............................................................
.
$ 6,554 $ — $ —
Adjustment to initially apply SFAS 158, net of tax...........................
.
$ — $ 20,332 $ —
Adjustment to initially apply FIN 48.................................................
.
$ 408 $ — $ —
See accompanying notes to consolidated financial statements.