GameStop 2008 Annual Report Download - page 106

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GAMESTOP CORP.
CONSOLIDATING STATEMENT OF CASH FLOWS
For the 52 Weeks Ended January 31, 2009
Issuers and
Guarantor
Subsidiaries
January 31,
2009
Non-Guarantor
Subsidiaries
January 31,
2009 Eliminations
Consolidated
January 31,
2009
(Amounts in thousands)
Cash flows from operating activities:
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 335,741 $ 62,541 $ — $ 398,282
Adjustments to reconcile net earnings to net cash flows
provided by (used in) operating activities:
Depreciation and amortization (including amounts in
cost of sales) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104,880 41,483 — 146,363
Provision for inventory reserves . . . . . . . . . . . . . . . . 34,854 8,125 — 42,979
Amortization and retirement of deferred financing
fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,496 — — 2,496
Amortization and retirement of original issue discount
on senior notes . . . . . . . . . . . . . . . . . . . . . . . . . . 1,239 — — 1,239
Stock-based compensation expense . . . . . . . . . . . . . . 35,354 — — 35,354
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . (22,018) (3,517) — (25,535)
Excess tax benefits realized from exercise of stock-
based awards. . . . . . . . . . . . . . . . . . . . . . . . . . . . (34,174) — — (34,174)
Loss on disposal of property and equipment . . . . . . . . 2,991 2,202 — 5,193
Increase in other long-term liabilities. . . . . . . . . . . . . (1,633) 5,704 — 4,071
Increase in liability to landlords for tenant allowances,
net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,691 575 — 4,266
Change in the value of foreign exchange contracts . . . (12,546) (4,868) — (17,414)
Changes in operating assets and liabilities, net of
businesses acquired
Receivables, net. . . . . . . . . . . . . . . . . . . . . . . . . . 3,246 (648,526) 642,379 (2,901)
Merchandise inventories . . . . . . . . . . . . . . . . . . . . (170,250) (39,192) — (209,442)
Prepaid expenses and other current assets . . . . . . . . (3,856) (6,255) — (10,111)
Prepaid taxes and taxes payable. . . . . . . . . . . . . . . 46,490 (1,792) — 44,698
Accounts payable and accrued liabilities . . . . . . . . . 773,395 32,855 (642,379) 163,871
Net cash flows provided by (used in) operating
activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,099,900 (550,665) — 549,235
Cash flows from investing activities:
Purchase of property and equipment . . . . . . . . . . . . . . . . . (117,484) (65,708) — (183,192)
Acquisitions, net of cash acquired . . . . . . . . . . . . . . . . . . — (630,706) — (630,706)
Net cash flows used in investing activities . . . . . . . . . . . (117,484) (696,414) — (813,898)
Cash flows from financing activities:
Repurchase of notes payable . . . . . . . . . . . . . . . . . . . . (30,000) — — (30,000)
Borrowings for acquisition . . . . . . . . . . . . . . . . . . . . . . 425,000 — — 425,000
Repayments of acquisition borrowings . . . . . . . . . . . . . (425,000) — — (425,000)
Issuance of shares relating to stock options . . . . . . . . . . 28,950 — — 28,950
Excess tax benefits realized from exercise of stock-based
awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,174 — — 34,174
Net change in other noncurrent assets and other
intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,313,695) 1,303,221 — (10,474)
Net cash flows provided by (used in) financing
activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,280,571) 1,303,221 — 22,650
Exchange rate effect on cash and cash equivalents . . . . . . . — (37,260) — (37,260)
Net increase (decrease) in cash and cash equivalents . . . . . (298,155) 18,882 — (279,273)
Cash and cash equivalents at beginning of period. . . . . . . . 671,333 186,081 — 857,414
Cash and cash equivalents at end of period . . . . . . . . . . . . $ 373,178 $ 204,963 $ — $ 578,141
F-39
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)