GameStop 2005 Annual Report Download - page 78

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GAMESTOP CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
52 Weeks
Ended
January 28,
2006
52 Weeks
Ended
January 29,
2005
52 Weeks
Ended
January 31,
2004
(In thousands)
Cash flows from operating activities:
Net earnings ............................................ $100,784 $ 60,926 $ 63,467
Adjustments to reconcile net earnings to net cash flows provided by
operating activities:
Depreciation and amortization (including amounts in cost of sales) . . . 66,659 37,019 29,487
Provision for inventory reserves ............................ 25,103 17,808 12,901
Amortization of loan cost ................................. 1,229 432 313
Amortization of original issue discount on senior notes............ 316 — —
Restricted stock expense . ................................. 347 — —
Deferred taxes . . ....................................... (8,216) 5,402 5,713
Tax benefit realized from exercise of stock options by employees . . . . 12,308 5,082 9,702
Loss on disposal and impairment of property and equipment . . ...... 11,648 382 213
Increase in deferred rent and other long-term liabilities for scheduled
rent increases in long-term leases . . ....................... 3,669 5,349 338
Increase in liability to landlords for tenant allowances, net . . . ...... 202 1,644 937
Minority interest ....................................... — (96) (298)
Decrease in value of foreign exchange contracts ................. (2,421) — —
Changes in operating assets and liabilities, net of business acquired
Receivables, net ...................................... (9,995) (267) (1,954)
Merchandise inventories ................................ (91,363) (10,578) (72,712)
Prepaid expenses and other current assets . . . ................. 19,484 (4,060) (4,111)
Prepaid taxes . ....................................... 13,610 9,072 (12,775)
Accounts payable and accrued liabilities . . . ................. 148,054 17,872 40,056
Net cash flows provided by operating activities . . . ............ 291,418 145,987 71,277
Cash flows from investing activities:
Purchase of property and equipment ........................... (110,696) (98,305) (64,484)
Merger with Electronics Boutique, net of cash acquired . ............ (886,116) — —
Acquisition of controlling interest in Gamesworld Group Limited, net of
cash received . . . ....................................... — (62) (3,027)
Net cash flows used in investing activities ....................... (996,812) (98,367) (67,511)
Cash flows from financing activities:
Issuance of senior notes payable relating to Electronics Boutique merger,
net of discount . . ....................................... 641,472 — —
Issuance of senior floating rate notes payable relating to Electronics
Boutique merger ....................................... 300,000 — —
Issuance of shares relating to employee stock options. . . ............ 20,800 9,474 6,899
Net increase in other noncurrent assets and deferred financing fees ..... (13,466) (825) (522)
Purchase of treasury shares through repurchase program. ............ — (14,994) (35,006)
Repurchase of Class B shares ................................ — (111,781) —
Issuance of debt relating to the Class B share repurchase ............ — 74,020 —
Repayment of debt relating to the Class B shares . ................. (12,173) (37,500) —
Repayment of debt relating to pre-existing debt of Electronics
Boutique . ............................................ (956) — —
Repayment of debt of Gamesworld Group Limited ................ — — (2,296)
Net cash flows provided by (used in) financing activities ............ 935,677 (81,606) (30,925)
Exchange rate effect on cash and cash equivalents ................. 318 73 34
Net increase (decrease) in cash and cash equivalents . . . ............ 230,601 (33,913) (27,125)
Cash and cash equivalents at beginning of period . . ................. 170,992 204,905 232,030
Cash and cash equivalents at end of period . ....................... $401,593 $ 170,992 $204,905
See accompanying notes to consolidated financial statements.
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