GameStop 2007 Annual Report Download - page 74

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GAMESTOP CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
52 Weeks
Ended
February 2,
2008
53 Weeks
Ended
February 3,
2007
52 Weeks
Ended
January 28,
2006
(In thousands)
Cash flows from operating activities:
Net earnings ............................................ $288,291 $ 158,250 $ 100,784
Adjustments to reconcile net earnings to net cash flows provided by
operating activities:
Depreciation and amortization (including amounts in cost of sales) . . 131,277 110,176 66,659
Provision for inventory reserves ............................ 51,879 50,779 25,103
Amortization and retirement of deferred financing fees ........... 5,669 4,595 1,229
Amortization and retirement of original issue discount on senior
notes .............................................. 1,162 1,523 316
Stock-based compensation expense ......................... 26,911 20,978 347
Deferred taxes ......................................... (13,151) (3,080) (3,675)
Excess tax benefits realized from exercise of stock-based awards . . . (93,322) (43,758) 12,308
Loss on disposal of property and equipment ................... 8,205 4,261 11,648
Increase in deferred rent and other long-term liabilities ........... 8,501 9,702 3,669
Increase in liability to landlords for tenant allowances, net ........ 5,208 1,602 202
Change in the value of foreign exchange contracts .............. 5,735 (4,450) (2,421)
Changes in operating assets and liabilities, net of business acquired
Receivables, net ...................................... (21,751) 2,866 (9,995)
Merchandise inventories ................................ (177,519) (118,417) (91,363)
Prepaid expenses and other current assets ................... (12,535) (21,543) 19,484
Prepaid taxes and taxes payable .......................... 114,498 52,663 9,069
Accounts payable and accrued liabilities .................... 173,667 197,306 148,054
Net cash flows provided by operating activities............... 502,725 423,453 291,418
Cash flows from investing activities:
Purchase of property and equipment .......................... (175,569) (133,930) (110,696)
Merger with Electronics Boutique, net of cash acquired ............ — — (886,116)
Acquisitions, net of cash acquired ............................ 1,061 (11,303) —
Sale of assets held for sale ................................. — 19,297 —
Net cash flows used in investing activities ...................... (174,508) (125,936) (996,812)
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
Repurchase of notes payable ................................ (270,000) (100,000) —
Repayment of debt relating to the repurchase of common stock from
Barnes & Noble ....................................... (12,173) (12,173) (12,173)
Repayment of other debt ................................... — (9,441) (956)
Issuance of shares relating to stock options ..................... 64,883 33,861 20,800
Excess tax benefits realized from exercise of stock-based awards ..... 93,322 43,758 —
Net increase in other noncurrent assets and deferred financing fees .... (7,870) (2,609) (13,466)
Net cash flows provided by (used in) financing activities ........... (131,838) (46,604) 935,677
Exchange rate effect on cash and cash equivalents ................ 8,632 (103) 318
Net increase in cash and cash equivalents ...................... 205,011 250,810 230,601
Cash and cash equivalents at beginning of period................... 652,403 401,593 170,992
Cash and cash equivalents at end of period ....................... $857,414 $ 652,403 $ 401,593
See accompanying notes to consolidated financial statements.
F-7