GameStop 2007 Annual Report Download - page 108

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GAMESTOP CORP.
CONSOLIDATING STATEMENT OF CASH FLOWS
For the 52 Weeks Ended January 28, 2006
Issuers and
Guarantor
Subsidiaries
January 28,
2006
Non-Guarantor
Subsidiaries
January 28,
2006 Eliminations
Consolidated
January 28,
2006
(Amounts in thousands)
Cash flows from operating activities:
Net earnings ................................... $ 91,490 $ 9,294 $— $ 100,784
Adjustments to reconcile net earnings to net cash flows
provided by operating activities:
Depreciation and amortization (including amounts in cost
of sales) ................................... 58,932 7,727 — 66,659
Provision for inventory reserves ................... 24,726 377 — 25,103
Amortization of loan cost ........................ 1,229 — — 1,229
Amortization of original issue discount on senior notes . . . 316 — — 316
Stock-based compensation expense ................. 347 — — 347
Deferred taxes . . . ............................. (3,987) 312 — (3,675)
Excess tax benefits realized from exercise of stock-based
awards . ................................... 12,308 — — 12,308
Loss on disposal and impairment of property and
equipment ................................. 11,648 — — 11,648
Increase in deferred rent and other long-term liabilities . . . 3,216 453 — 3,669
Increase in liability to landlords for tenant allowances,
net....................................... 936 (734) — 202
Decrease in value of foreign exchange contracts ........ (2,421) — — (2,421)
Changes in operating assets and liabilities, net of business
acquired
Receivables, net ............................. (6,728) (3,267) — (9,995)
Merchandise inventories ....................... (75,311) (16,052) — (91,363)
Prepaid expenses and other current assets . . . ........ 19,402 82 — 19,484
Prepaid taxes and taxes payable .................. 13,631 (4,562) — 9,069
Accounts payable and accrued liabilities ............ 89,675 58,379 — 148,054
Net cash flows provided by operating activities ....... 239,409 52,009 — 291,418
Cash flows from investing activities:
Purchase of property and equipment .................. (93,419) (17,277) — (110,696)
Merger with Electronics Boutique, net of cash acquired . . . . (920,504) 34,388 — (886,116)
Net cash flows provided by (used in) investing activities . . . (1,013,923) 17,111 — (996,812)
Cash flows from financing activities:
Issuance of senior notes payable relating to Electronics
Boutique merger, net of discount ................... 641,472 — — 641,472
Issuance of senior floating rate notes payable relating to
Electronics Boutique merger . . .................... 300,000 — — 300,000
Repayment of debt relating to the repurchase of common
stock from Barnes & Noble . . . ................... (12,173) — — (12,173)
Repayment of other debt . . ........................ — (956) — (956)
Issuance of shares relating to stock options ............. 20,800 — — 20,800
Net increase in other noncurrent assets and deferred
financing fees . . . ............................. (14,450) 984 — (13,466)
Net cash flows provided by financing activities . . ........ 935,649 28 — 935,677
Exchange rate effect on cash and cash equivalents . . ........ — 318 — 318
Net increase in cash and cash equivalents . . . ............. 161,135 69,466 — 230,601
Cash and cash equivalents at beginning of period . . ........ 167,788 3,204 — 170,992
Cash and cash equivalents at end of period . . ............. $ 328,923 $ 72,670 $— $ 401,593
F-41
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)