GameStop 2005 Annual Report Download - page 112

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GAMESTOP CORP.
CONSOLIDATING STATEMENT OF CASH FLOWS
For the Fiscal Year Ended January 29, 2005
Issuers and
Guarantor
Subsidiaries
January 29,
2005
Non-Guarantor
Subsidiaries
January 29,
2005 Eliminations
Consolidated
January 29,
2005
(Amounts in thousands)
Cash flows from operating activities:
Net earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 63,342 $(2,416) $— $ 60,926
Adjustments to reconcile net earnings to net cash flows
provided by operating activities:
Depreciation and amortization (including amounts in
cost of sales) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,418 601 — 37,019
Provision for inventory reserves. . . . . . . . . . . . . . . . . 17,808 — — 17,808
Amortization of loan cost . . . . . . . . . . . . . . . . . . . . . 432 — — 432
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,402 — — 5,402
Tax benefit realized from exercise of stock options by
employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,082 — — 5,082
Loss on disposal of property and equipment . . . . . . . . 382 — — 382
Increase in deferred rent and other long-term liabilities
for scheduled rent increases in long-term leases . . . . 5,350 (1) — 5,349
Increase in liability to landlords for tenant allowances,
net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,644 — 1,644
Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . — (96) — (96)
Changes in operating assets and liabilities, net
Receivables, net . . . . . . . . . . . . . . . . . . . . . . . . . . (1,122) 855 — (267)
Merchandise inventories . . . . . . . . . . . . . . . . . . . . (7,964) (2,614) — (10,578)
Prepaid expenses and other current assets . . . . . . . . (3,874) (186) — (4,060)
Prepaid taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,734 (662) — 9,072
Accounts payable and accrued liabilities . . . . . . . . . 8,618 9,254 — 17,872
Net cash flows provided by operating activities . . . . 141,252 4,735 — 145,987
Cash flows from investing activities:
Purchase of property and equipment . . . . . . . . . . . . . . . (95,149) (3,156) — (98,305)
Acquisition of controlling interest in Gamesworld Group
Limited, net of cash received . . . . . . . . . . . . . . . . . . (62) — (62)
Net cash flows used in investing activities . . . . . . . . . . . (95,149) (3,218) — (98,367)
Cash flows from financing activities:
Issuance of shares relating to employee stock options . . . 9,474 — — 9,474
Net increase in other noncurrent assets . . . . . . . . . . . . . (825) — — (825)
Purchase of treasury shares through repurchase
program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,994) — — (14,994)
Repurchase of Class B shares . . . . . . . . . . . . . . . . . . . . (111,781) — — (111,781)
Issuance of debt relating to the Class B share
repurchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,020 — — 74,020
Repayment of debt relating to the Class B shares . . . . . . (37,500) — — (37,500)
Net cash flows provided by (used in) financing
activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (81,606) — — (81,606)
Exchange rate effect on cash and cash equivalents . . . . . . . — 73 — 73
Net decrease in cash and cash equivalents . . . . . . . . . . . . . (35,503) 1,590 — (33,913)
Cash and cash equivalents at beginning of period . . . . . . . . 203,291 1,614 — 204,905
Cash and cash equivalents at end of period . . . . . . . . . . . . $ 167,788 $ 3,204 $— $ 170,992
103
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)