CarMax 2009 Annual Report Download - page 48

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42
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended February 28 or 29
(In thousands) 2009 2008 2007
OPERATING ACTIVITIES:
Net earnings ........................................................................................ $ 59,213 $ 182,025 $ 198,597
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation and amortization......................................................... 54,741 46,615 34,551
Share-based compensation expense................................................. 35,436 33,467 31,826
Loss on disposition of assets ........................................................... 10,728 1,404 88
Deferred income tax benefit ............................................................ (41,502) (24,405) (14,169)
Impairment of long-lived assets ...................................................... — — 4,891
Net (increase) decrease in:
Accounts receivable, net .............................................................. (2,648) (1,815) 5,208
Auto loan receivables held for sale, net ....................................... (4,764) 1,178 (2,023)
Retained interest in securitized receivables ................................. (77,501) (68,459) (43,994)
Inventory...................................................................................... 272,620 (139,661) (166,416)
Prepaid expenses and other current assets ................................... 9,090 (4,148) (3,857)
Other assets.................................................................................. 647 1,360 (3,924)
Net (decrease) increase in:
Accounts payable, accrued expenses and other current liabilities
and accrued income taxes....................................................... (40,276) 14,561 85,633
Deferred revenue and other liabilities .......................................... (11,193) 37,398 10,389
NET CASH PROVIDED BY OPERATING ACTIVITIES........................................ 264,591 79,520 136,800
INVESTING ACTIVITIES:
Capital expenditures............................................................................ (185,700) (253,106) (191,760)
Proceeds from sales of assets.............................................................. 34,341 1,089 4,569
(Purchases) sales of money market securities, net .............................. (3,987) (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 ................................................. (155,346) (257,017) (187,191)
FINANCING ACTIVITIES:
(Decrease) increase in short-term debt, net......................................... (20,139) 17,727 2,827
Issuances of long-term debt ................................................................ 789,800 972,300 1,232,400
Payments on long-term debt................................................................ (761,827) (841,119) (1,244,762)
Equity issuances, net........................................................................... 10,162 14,730 35,411
Excess tax benefits from share-based payment arrangements............. 391 7,369 22,211
NET CASH PROVIDED BY FINANCING ACTIVITIES ........................................ 18,387 171,007 48,087
Increase (decrease) in cash and cash equivalents.................................... 127,632 (6,490) (2,304)
Cash and cash equivalents at beginning of year ..................................... 12,965 19,455 21,759
CASH AND CASH EQUIVALENTS AT END OF YEAR ............................................ $ 140,597 $ 12,965 $ 19,455
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the year for:
Interest............................................................................................. $ 10,171 $ 9,768 $ 9,768
Income taxes.................................................................................... $ 64,023 $ 124,868 $ 99,380
Non-cash investing and financing activities:
Increase (decrease) in long-term debt obligations from
capitalization of leases ................................................................. $ 1,382 $ (6,554) $ —
(Decrease) increase in accrued capital expenditures ....................... $ (12,861) $ 9,909 $ —
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.