GameStop 2007 Annual Report Download - page 106

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GAMESTOP CORP.
CONSOLIDATING STATEMENT OF CASH FLOWS
For the 52 Weeks Ended February 2, 2008
Issuers and
Guarantor
Subsidiaries
February 2,
2008
Non-Guarantor
Subsidiaries
February 2,
2008 Eliminations
Consolidated
February 2,
2008
(Amounts in thousands)
Cash flows from operating activities:
Net earnings ................................. $235,274 $ 53,017 $— $ 288,291
Adjustments to reconcile net earnings to net cash flows
provided by operating activities:
Depreciation and amortization (including amounts in
cost of sales) ............................. 100,961 30,316 — 131,277
Provision for inventory reserves ................. 44,728 7,151 — 51,879
Amortization and retirement of deferred financing
fees ................................... 5,669 — — 5,669
Amortization and retirement of original issue discount
on senior notes . . . ........................ 1,162 — — 1,162
Stock-based compensation expense . . ............. 26,911 — — 26,911
Deferred taxes ............................. (4,708) (8,443) — (13,151)
Excess tax benefits realized from exercise of stock-
based awards ............................. (93,322) — — (93,322)
Loss on disposal of property and equipment ........ 1,960 6,245 — 8,205
Increase in deferred rent and other long-term
liabilities . . . ............................. 2,230 6,271 — 8,501
Increase in liability to landlords for tenant allowances,
net.................................... 4,374 834 — 5,208
Change in the value of foreign exchange contracts . . . . 6,792 (1,057) — 5,735
Changes in operating assets and liabilities, net of
business acquired
Receivables, net. . . ........................ (8,145) (13,606) — (21,751)
Merchandise inventories . . . .................. (51,452) (126,067) — (177,519)
Prepaid expenses and other current assets ........ (6,265) (6,270) — (12,535)
Prepaid taxes and taxes payable . . ............. 113,663 835 — 114,498
Accounts payable and accrued liabilities . ........ (43,283) 216,950 — 173,667
Net cash flows provided by operating activities . . . . 336,549 166,176 — 502,725
Cash flows from investing activities:
Purchase of property and equipment. . . ............. (123,258) (52,311) — (175,569)
Acquisitions, net of cash acquired ................. 1,061 — — 1,061
Net cash flows used in investing activities . . . ........ (122,197) (52,311) — (174,508)
Cash flows from financing activities:
Repurchase of notes payable . . . .................. (270,000) — — (270,000)
Repayment of debt relating to repurchase of common
stock from Barnes & Noble . . .................. (12,173) — — (12,173)
Issuance of shares relating to stock options . . . ........ 64,883 — — 64,883
Excess tax benefits realized from exercise of stock-based
awards ................................... 93,322 — — 93,322
Net increase in other noncurrent assets and deferred
financing fees . ............................. (1,565) (6,305) — (7,870)
Net cash flows used in financing activities . . . ........ (125,533) (6,305) — (131,838)
Exchange rate effect on cash and cash equivalents ....... — 8,632 — 8,632
Net increase in cash and cash equivalents ............. 88,819 116,192 — 205,011
Cash and cash equivalents at beginning of period ........ 582,514 69,889 — 652,403
Cash and cash equivalents at end of period ............ $671,333 $ 186,081 $— $ 857,414
F-39
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)