Family Dollar 2011 Annual Report Download - page 45

FAMILY DOLLAR STORES, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended
(in thousands)
August 27,
2011
August 28,
2010
August 29,
2009
Cash flows from operating activities:
Net income ............................................... $388,445 $ 358,135 $ 291,266
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization ............................ 182,455 172,037 159,808
Deferred income taxes .................................. 46,805 8,123 4,426
Excess tax benefits from stock-based compensation ........... (4,745) (1,676) (704)
Stock-based compensation ............................... 14,728 13,163 11,538
Loss on disposition of property and equipment, including
impairment ......................................... 9,461 7,244 9,924
Other gains and losses .................................. — — 1,228
Changes in operating assets and liabilities:
Merchandise inventories ............................ (126,638) (34,225) 38,888
Prepayments and other current assets .................. (8,409) 200 238
Other assets ...................................... (4,888) 2,666 6,027
Accounts payable and accrued liabilities ................ 37,057 61,646 12,373
Income taxes ...................................... (23,799) 25,389 (1,401)
Other liabilities .................................... 17,592 (21,163) (4,412)
528,064 591,539 529,199
Cash flows from investing activities:
Purchases of investment securities ............................. (352,082) (142,730) —
Sales of investment securities ................................ 415,877 46,888 44,943
Capital expenditures ........................................ (345,268) (212,435) (155,401)
Proceeds from dispositions of property and equipment ............. 1,055 1,329 1,103
(280,418) (306,948) (109,355)
Cash flows from financing activities:
Revolving credit facility borrowings ........................... 46,000 — —
Repayment of revolving credit facility borrowings ................ (46,000) — —
Issuance of long-term debt ................................... 298,482 — —
Payment of debt issuance costs ............................... (7,811) (651) (624)
Repurchases of common stock ................................ (670,466) (332,189) (71,067)
Change in cash overdrafts ................................... (47,722) 49,687 (27,256)
Proceeds from exercise of employee stock options ................ 17,216 19,663 31,525
Excess tax benefits from stock-based compensation ............... 4,745 1,676 704
Payment of dividends ....................................... (83,439) (78,913) (72,738)
(488,995) (340,727) (139,456)
Net change in cash and cash equivalents .......................... (241,349) (56,136) 280,388
Cash and cash equivalents at beginning of year .................... 382,754 438,890 158,502
Cash and cash equivalents at end of year ......................... $141,405 $ 382,754 $ 438,890
Supplemental disclosures of cash flow information:
Purchases of property and equipment awaiting processing for
payment, included in accounts payable ....................... $ 36,220 $ 22,848 $ 4,575
Cash paid during the period for:
Interest, net of amounts capitalized ........................ 20,395 12,568 12,192
Income taxes, net of refunds ............................. 201,843 175,915 158,486
The accompanying notes are an integral part of the consolidated financial statements.
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