North Face 2007 Annual Report Download - page 32

CONSOLIDATED STATEMENTS OF CASH FLOWSCONSOLIDATED STATEMENTS OF INCOME
VF CORPORATION | 50
VF CORPORATION | 51
YEAR ENDED DECEMBER
In thousands, except per share amounts 2007 2006 2005
Net Sales $ 7,14 0,811 $ 6,138,087 $ 5,582,075
Royalty Income 78,548 7 7,70 7 72,080
Total Revenues 7,219,359 6,215,794 5,654,155
Costs and Operating Expenses
Cost of goods sold 4,080,022 3,515,624 3,209,312
Marketing, administrative and general expenses 2,173,896 1,874,026 1,676,892
6,253,918 5,389,650 4,886,204
Operating Income 965,441 826,144 767,951
Other Income (Expense)
Interest income 9,310 5,99 4 8,217
Interest expense (72,122) (57,259) (70,596)
Miscellaneous, net 2,941 2,359 6,121
(59,871) (48,906) (56,258)
Income from Continuing Operations
Before Income Taxes 905,570 777,238 711,693
Income Taxes 292,324 242,187 229,064
Income from Continuing Operations 613,246 535,051 482,629
Discontinued Operations (21,625) (1,535) 35,9 0 6
Cumulative Effect of a Change in Accounting Policy —
— (11,833)
Net Income $ 591,621 $ 533,516 $ 506,702
Earnings Per Common Share—Basic
Income from continuing operations $ 5.55 $ 4.83 $ 4.33
Discontinued operations (0.20) (0.01) 0.32
Cumulative effect of a change in accounting policy — — (0.11)
Net income $ 5.36 $ 4.82 $ 4.54
Earnings Per Common Share—Diluted
Income from continuing operations $ 5.41 $ 4.73 $ 4.23
Discontinued operations (0.19) (0.01) 0.31
Cumulative effect of a change in accounting policy — — (0.10)
Net income $ 5.22 $ 4.72 $ 4.44
Cash Dividends Per Common Share $ 2.23 $ 1.94 $ 1.10
Audited financial statements and notes, along with management’s discussion and analysis of results of operations and financial condition, are
available in our 2007 Annual Report on Form 10-K filed with the Securities and Exchange Commission, accessible on our website, www.vfc.com.
YEAR ENDED DECEMBER
In thousands 2007 2006 2005
Operating Activities
Net income $ 591,621 $ 533,516 $ 506,702
Adjustments to reconcile net income to cash provided
by operating activities of continuing operations:
(Income) loss from discontinued operations 21,625 1,535 (35,906)
Cumulative effect of a change in accounting policy — — 11,833
Depreciation 94,540 90,374 88,047
Amortization of intangible assets 2 7,10 6 18,003 16,684
Other amortization 19,581 20,469 16,703
Stock-based compensation 62,413 46,427 40,512
Provision for doubtful accounts 13,859 6,693 7,8 31
Pension funding under(over) expense 7,0 94 (31,277) (14,857)
Deferred income taxes (3,748) (24,463) (12,133)
Other, net 3,763 (6,509) 17,938
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable (49,673) (113,363) (11,106)
Inventories (24,113) (33,193) (80,428)
Other current assets 15,644 6,322 (44,608)
Accounts payable 77,212 (19,043) 80,166
Accrued compensation (1,932) (23,592) (7,16 8)
Accrued income taxes (7,541) (51,111) 21,343
Accrued liabilities 31,986 22,485 (52,797)
Other assets and liabilities (45,808) 10,855 (15,102)
Cash provided by operating activities of continuing operations 833,629 454,128 533,654
Cash provided (used) by discontinued operations, net (13,053) 36,625 27, 69 2
Cash provided by operating activities 820,576 490,753 561,346
Investing Activities
Capital expenditures (113,863) (127,195) (102,976)
Business acquisitions, net of cash acquired (1,060,636) (39,301) (211,838)
Software purchases (6,367) (8,939) (17, 4 9 4)
Sale of intimate apparel business 348,714 — —
Sale of other businesses 12,368 4,667 6,667
Sale of property, plant and equipment 14,085 3,327 11,974
Other, net (120) (323) 798
Cash used by investing activities of continuing operations (805,819) (167,76 4) (312,869)
Discontinued operations, net (243) 1,017 (1,674)
Cash used by investing activities (806,062) (166,747) (314,543)
Financing Activities
Increase (decrease) in short-term borrowings 36,785 (60,533) 95,673
Proceeds from long-term debt 592,758 — 117,7 9 2
Payments on long-term debt (168,671) (33,520) (401,253)
Purchase of Common Stock (350,000) (118,582) (229,003)
Cash dividends paid (246,634) (216,529) (124,116)
Proceeds from issuance of Common Stock 69,539 119,675 99,974
Tax benefits of stock option exercises 15,571 24,064 17,741
Other, net — — (301)
Cash used by financing activities of continuing operations (50,652) (285,425) (423,493)
Effect of Foreign Currency Rate Changes on Cash 14,777 8,086 (12,260)
Net Change in Cash and Equivalents (21,361) 46,667 (188,950)
Cash and Equivalents—Beginning of Year 343,224 296,557 485,507
Cash and Equivalents—End of Year $ 321,863 $ 343,224 $ 296,557
Audited financial statements and notes, along with management’s discussion and analysis of results of operations and financial condition, are
available in our 2007 Annual Report on Form 10-K filed with the Securities and Exchange Commission, accessible on our website, www.vfc.com.