GameStop 2006 Annual Report Download - page 107

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GAMESTOP CORP.
CONSOLIDATING STATEMENT OF CASH FLOWS
For the 53 Weeks Ended February 3, 2007
Issuers and
Guarantor
Subsidiaries
February 3,
2007
Non-Guarantor
Subsidiaries
February 3,
2007 Eliminations
Consolidated
February 3,
2007
(Amounts in thousands)
Cash flows from operating activities:
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 133,160 $ 25,090 $— $ 158,250
Adjustments to reconcile net earnings to net cash flows
provided by operating activities:
Depreciation and amortization (including amounts in cost
of sales) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,566 24,610 — 110,176
Provision for inventory reserves . . . . . . . . . . . . . . . . . . . 47,325 3,454 — 50,779
Amortization and retirement of deferred financing fees . . . 4,595 — — 4,595
Amortization and retirement of original issue discount on
senior notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,523 — — 1,523
Stock-based compensation expense . . . . . . . . . . . . . . . . . 20,978 — — 20,978
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,578) (1,502) — (3,080)
Loss on disposal and impairment of property and
equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,606 1,655 — 4,261
Increase in deferred rent and other long-term liabilities . . . 5,410 4,292 — 9,702
Increase in liability to landlords for tenant allowances,
net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,105 497 — 1,602
Decrease in value of foreign exchange contracts . . . . . . . . (6,716) 2,266 — (4,450)
Changes in operating assets and liabilities, net of business
acquired
Receivables, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,253 1,613 — 2,866
Merchandise inventories . . . . . . . . . . . . . . . . . . . . . . . (71,334) (47,083) — (118,417)
Prepaid expenses and other current assets . . . . . . . . . . . (19,513) (2,030) — (21,543)
Prepaid taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,206 3,457 — 52,663
Excess tax benefit realized from exercise of stock
options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (43,707) — — (43,707)
Accounts payable and accrued liabilities . . . . . . . . . . . 178,417 18,889 — 197,306
Net cash flows provided by operating activities . . . . . . . 388,296 35,208 — 423,504
Cash flows from investing activities:
Purchase of property and equipment . . . . . . . . . . . . . . . . . . (97,140) (36,790) — (133,930)
Acquisition of Game Brands Inc., net of cash acquired . . . . . (11,303) — — (11,303)
Sale of assets held for sale . . . . . . . . . . . . . . . . . . . . . . . . 19,297 — — 19,297
Net cash flows used in investing activities . . . . . . . . . . . . . . (89,146) (36,790) — (125,936)
Cash flows from financing activities:
Repurchase of notes payable . . . . . . . . . . . . . . . . . . . . . . . (100,000) — — (100,000)
Repayment of debt relating to repurchase of common stock
from Barnes & Noble . . . . . . . . . . . . . . . . . . . . . . . . . . (12,173) — — (12,173)
Repayment of other debt . . . . . . . . . . . . . . . . . . . . . . . . . . (9,016) (425) — (9,441)
Proceeds from exercise of stock options . . . . . . . . . . . . . . . 33,861 — — 33,861
Excess tax benefit realized from exercise of stock options . . . 43,707 — — 43,707
Net increase in other noncurrent assets and deferred
financing fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,938) (671) — (2,609)
Net cash flows used in financing activities . . . . . . . . . . . . . (45,559) (1,096) — (46,655)
Exchange rate effect on cash and cash equivalents . . . . . . . . . . — (103) — (103)
Net increase (decrease) in cash and cash equivalents . . . . . . . . 253,591 (2,781) — 250,810
Cash and cash equivalents at beginning of period . . . . . . . . . . 328,923 72,670 — 401,593
Cash and cash equivalents at end of period . . . . . . . . . . . . . . . $ 582,514 $ 69,889 $— $ 652,403
F-39
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)