Petsmart 2007 Annual Report Download - page 56

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PetSmart, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
February 3,
2008
January 28,
2007
January 29,
2006
Year Ended
(53 weeks) (52 weeks) (52 weeks)
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ................................................... $258,684 $ 185,069 $ 182,490
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization . .................................... 195,980 156,941 139,625
Gain on sale of equity investment ................................... (95,363) — —
Loss on disposal of property and equipment . . .......................... 6,914 8,727 2,892
Stock-based compensation expense . . . ............................... 18,333 19,320 22,398
Deferred income taxes . ......................................... (15,251) (18,882) (16,602)
Equity in income from investee .................................... (1,671) — —
Tax benefits from tax deductions in excess of the compensation cost recognized ..... (10,715) (8,222) (12,860)
Non-cash interest expense ........................................ 2,589 5,647 3,161
Changes in assets and liabilities, excluding the effect of the acquisition of store
locations in Canada:
Receivables, net ............................................. (11,793) 1,832 (9,751)
Merchandise inventories ........................................ (9,005) (87,867) (61,745)
Prepaid expenses and other current assets . . .......................... (22,549) (3,276) (3,154)
Other noncurrent assets ........................................ (4,238) (2,555) (5,332)
Accounts payable . . . ......................................... (1,515) 9,732 25,760
Accrued payroll, bonus and employee benefits ......................... 11,491 17,058 16,904
Accrued occupancy expenses and deferred rents . . . ..................... 1,722 1,222 8,354
Other current liabilities ........................................ (2,271) 9,639 49,120
Deferred rents and other noncurrent liabilities .......................... 11,374 (5,094) (1,314)
Net cash provided by operating activities . ............................... 332,716 289,291 339,946
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for short-term available-for-sale investments . . ..................... (285,205) (2,114,035) (1,644,050)
Proceeds from sales of short-term available-for-sale investments . ................ 304,405 2,314,735 1,737,725
Decrease (increase) in restricted cash and short-term investments ................ 60,700 (60,700) —
Cash paid for property and equipment . . . ............................... (294,437) (241,106) (165,737)
Cash paid for acquisition of store locations in Canada . . ..................... (36,963) — —
Proceeds from sales of property and equipment . . .......................... 539 1,579 262
Cash paid for equity investment . . .................................... — (4,398) —
Proceeds from sale of equity investment . ............................... 111,752 — —
Net cash used in investing activities ................................... (139,209) (103,925) (71,800)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from common stock issued under stock incentive plans ................ 31,576 28,626 33,058
Cash paid for treasury stock ........................................ (315,027) (161,864) (265,002)
Payments of capital lease obligations . . . ............................... (26,483) (19,046) (10,308)
Proceeds from credit facility borrowings . ............................... 185,000 — —
Payments of credit facility borrowings. . . ............................... (155,000) — —
(Decrease) increase in bank overdraft. . . ............................... (8,461) 15,707 (2,698)
Tax benefits from tax deductions in excess of the compensation cost recognized ...... 10,715 8,222 12,860
Cash dividends paid to stockholders ................................... (16,034) (16,654) (17,203)
Net cash used in financing activities ................................... (293,714) (145,009) (249,293)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS . . 9,730 (1,973) 4,530
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS................ (90,477) 38,384 23,383
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR . ................ 148,799 110,415 87,032
CASH AND CASH EQUIVALENTS AT END OF YEAR . ..................... $ 58,322 $ 148,799 $ 110,415
The accompanying notes are an integral part of these consolidated financial statements.
F-6