Pep Boys 2007 Annual Report Download - page 110

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THE PEP BOYS—MANNY, MOE & JACK AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Years ended February 2, 2008, February 3, 2007 and January 28, 2006
(dollar amounts in thousands, except share data)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Subsidiary
Subsidiary Non- Consolidation
As of February 2, 2008 Pep Boys Guarantors Guarantors Elimination Consolidated
Cash Flows from Operating Activities:
Net (Loss) Earnings .............................. $(41,039) $ 51,051 $ 8,486 $(59,537) $ (41,039)
Adjustments to Reconcile Net (Loss) Earnings to Net Cash (Used
in) Provided By Continuing Operations:
Net loss (earnings) from discontinued operations ............ 1,094 2,507 — — 3,601
Depreciation and amortization ....................... 28,606 52,168 683 (421) 81,036
Amortization of deferred gain from asset sale .............. (718) (733) — 421 (1,030)
Accretion of asset disposal obligation ................... 96 180 — — 276
Stock compensation expense ......................... 9,756 — — — 9,756
Inventory impairment ............................. 12,413 20,390 — — 32,803
Equity in earnings of subsidiaries ...................... (59,537) — — 59,537 —
Deferred income taxes ............................ 11,550 (39,929) 192 — (28,187)
Gain from dispositions of assets ....................... (3,095) (12,056) — — (15,151)
Loss from asset impairment ......................... 1,772 5,427 — — 7,199
Change in fair value of derivatives ..................... 9,268 — — — 9,268
Dividends received from subsidiary ..................... 2,467 — — (2,467) —
Excess tax benefits from stock based awards ............... (1,104) — — — (1,104)
Increase in cash surrender value of life insurance policies ....... (4,928) — — — (4,928)
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable, prepaid expenses and
other ...................................... (6,238) (1,782) 6,896 (455) (1,579)
Increase in merchandise inventories .................... 57 13,030 — — 13,087
Decrease in accounts payable ........................ (20,066) — — — (20,066)
Increase (decrease) in accrued expenses .................. 20,932 107 (11,411) 455 10,083
(Decrease) increase in other long-term liabilities ............ (6,265) 3,041 — — (3,224)
Net cash (used in) provided by continuing operations ......... (44,979) 93,401 4,846 (2,467) 50,801
Net cash provided by discontinued operations .............. 659 1,324 — — 1,983
Net Cash (Used in) Provided by Operating Activities ......... (44,320) 94,725 4,846 (2,467) 52,784
Cash Flows from Investing Activities:
Cash paid for property and equipment .................. (17,128) (25,988) — — (43,116)
Proceeds from dispositions of assets .................... 46,907 115,805 — — 162,712
Life insurance proceeds received ...................... 30,045 — — — 30,045
Net cash provided by continuing operations ............... 59,824 89,817 — — 149,641
Net cash (used in) discontinued operations ................ (108) (271) — — (379)
Net Cash Provided by Investing Activities ................. 59,716 89,546 — — 149,262
Cash Flows from Financing Activities:
Borrowings under line of credit agreements ............... 231,458 338,636 — — 570,094
Payments under line of credit agreements ................. (221,529) (324,088) (545,617)
Excess tax benefits from stock based awards ............... 1,104 — — — 1,104
Borrowings on trade payable program liability .............. 142,884 — — — 142,884
Payments on trade payable program liability ............... (142,620) — — — (142,620)
Payments for finance issuance costs .................... — (85) — — (85)
Proceeds from lease financing ........................ — 4,827 — — 4,827
Reduction of long-term debt ......................... (165,368) (41) — — (165,409)
Payments on capital lease obligations ................... (286) — — — (286)
Intercompany borrowings (payments) ................... 205,484 (204,811) (673) — —
Dividends paid ................................. (14,177) — (2,467) 2,467 (14,177)
Repurchase of common stock ........................ (58,152) — — — (58,152)
Proceeds from exercise of stock options .................. 3,652 — — — 3,652
Proceeds from dividend reinvestment plan ................ 781 — — — 781
Net Cash (Used in) Provided by Financing Activities .......... (16,769) (185,562) (3,140) 2,467 (203,004)
Net (Decrease) Increase in Cash ...................... (1,373) (1,291) 1,706 — (958)
Cash and Cash Equivalents at Beginning of Year ............ 13,581 7,946 357 — 21,884
Cash and Cash Equivalents at End of Year ................ $ 12,208 $ 6,655 $ 2,063 $ — $ 20,926
64
10-K