Pep Boys 2007 Annual Report Download - page 112

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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
Year Ended January 28, 2006 Pep Boys Guarantors Guarantors Elimination Consolidated
Cash Flows from Operating Activities:
Net (Loss) Earnings ......................... $(37,528) $ 31,147 $ (354) $(30,793) $ (37,528)
Adjustments to Reconcile Net (Loss) Earnings to Net Cash
(Used in) Provided By Continuing Operations:
Net earnings from discontinued operations ........... (649) (439) — — (1,088)
Depreciation and amortization ................... 29,058 49,891 — — 78,949
Cumulative effect of change in accounting principle ..... 854 1,167 — — 2,021
Accretion of asset disposal obligation .............. 24 84 — — 108
Stock compensation expense .................... 2,049 — — — 2,049
Equity in earnings of subsidiaries ................. (30,793) — — 30,793 —
Deferred income taxes ........................ (18,604) (8,497) (691) — (27,792)
Net gain from reduction in asset retirement liability ..... (657) (1,158) — — (1,815)
Gain (loss) from dispositions of assets .............. 675 (5,501) — — (4,826)
Loss on impairment of assets ................... 4,200 — — — 4,200
Increase in cash surrender value of life insurance policies . . (3,389) — — — (3,389)
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable, prepaid
expenses and other ........................ 8,161 11,161 (3,073) (1,083) 15,166
Increase in merchandise inventories ............... (3,476) (10,056) — — (13,532)
Decrease in accounts payable ................... (49,041) — — — (49,041)
(Decrease) increase in accrued expenses ............ (20,019) 2,711 16,858 (18,414) (18,864)
(Decrease) increase in other long-term liabilities ....... (2,913) 176 — 19,497 16,760
Net cash (used in) provided by continuing operations .... (122,048) 70,686 12,740 — (38,622)
Net cash provided by (used in) discontinued operations . . . 438 (203) — — 235
Net Cash (Used in) Provided by Operating Activities .... (121,610) 70,483 12,740 — (38,387)
Cash Flows from Investing Activities:
Cash paid for property and equipment .............. (16,364) (68,927) — — (85,291)
Proceeds from dispositions of assets ............... 978 3,065 — — 4,043
Proceeds from sales of assets held for disposal ......... — 6,913 — — 6,913
Premium paid on life insurance policies ............. (605) — — — (605)
Proceeds from life insurance policies ............... 24,655 — — — 24,655
Net cash provided by (used in) continuing operations .... 8,664 (58,949) — — (50,285)
Net cash provided by (used in) discontinued operations . . . 825 (563) — — 262
Net Cash Provided by (Used in) Investing Activities ..... 9,489 (59,512) — — (50,023)
Cash Flows from Financing Activities:
Net borrowings under line of credit agreements ........ 213,228 414,838 — — 628,066
Payments under line of credit agreements ............ (193,543) (376,538) — — (570,081)
Borrowings on trade payable program liability ......... 107,618 — — — 107,618
Payments on trade payable program liability .......... (96,462) — — — (96,462)
Payments for finance issuance costs ................ (5,150) — — — (5,150)
Proceeds from issuance of notes .................. 200,000 — — — 200,000
Reduction of long-term debt .................... (183,459) — — — (183,459)
Payments on capital lease obligations .............. (383) — — — (383)
Intercompany borrowings (payments) .............. 49,475 (50,792) 1,317 — —
Dividends paid ............................. (14,686) — — — (14,686)
Repurchase of stock options .................... (15,562) (15,562)
Proceeds from exercise of stock options ............. 3,071 — — — 3,071
Proceeds from dividend reinvestment plan ........... 961 — — — 961
Net Cash Provided by (Used in) Financing Activities ..... 65,108 (12,492) 1,317 — 53,933
Net (Decrease) Increase in Cash ................. (47,013) (1,521) 14,057 — (34,477)
Cash and Cash Equivalents at Beginning of Year ....... 59,032 8,474 15,252 — 82,758
Cash and Cash Equivalents at End of Year ........... $ 12,019 $ 6,953 $29,309 $ — $ 48,281
66
10-K