Sears 2008 Annual Report Download - page 53

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SEARS HOLDINGS CORPORATION
Consolidated Statements of Cash Flows
millions 2008 2007 2006
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ............................................................. $ 53 $ 826 $1,492
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization .......................................... 981 1,049 1,143
Impairment charges .................................................. 360 — —
Curtailment gain on Sears Canada’s post-retirement benefit plans .............. — (27) —
Loss (gain) on total return swaps, net ..................................... — 14 (74)
Gain on sales of assets ................................................ (51) (38) (82)
Gain on sale of investments ............................................ — (2) (18)
Pension and post-retirement plan contributions ............................. (286) (277) (413)
Settlement of Canadian dollar hedges .................................... (64) (12) (42)
Change in operating assets and liabilities (net of acquisitions and dispositions):
Deferred income taxes ............................................ (385) (84) 263
Merchandise inventories ........................................... 1,003 66 (835)
Merchandise payables ............................................. (389) 93 (140)
Income and other taxes ............................................ (173) (541) (240)
Mark-to-market asset on Sears Canada U.S. dollar option contracts ......... (74) — —
Other operating assets ............................................. 207 35 222
Other operating liabilities .......................................... (190) 445 152
Net cash provided by operating activities .................................. 992 1,547 1,428
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of businesses, net of cash acquired ............................ (37) — (283)
Proceeds from sales of property and investments ............................ 86 95 141
Increase in investments and restricted cash ................................ (189) (30) —
Purchases of property and equipment ..................................... (497) (570) (508)
Cash settlements and change in collateral on total return swaps, net ............. — 68 (10)
Net cash used in investing activities ...................................... (637) (437) (660)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt issuances ........................................... 17 3 524
Repayments of long-term debt .......................................... (262) (672) (875)
Increase (decrease) in short-term borrowings, primarily 90 days or less .......... 280 68 (83)
Proceeds from sale leaseback transaction .................................. — 88 —
Purchase of treasury stock ............................................. (678) (2,926) (816)
Debt issue costs ...................................................... — — (2)
Net cash used in financing activities ..................................... (643) (3,439) (1,252)
Effect of exchange rate changes on cash and cash equivalents ..................... (161) 112 (16)
NET DECREASE IN CASH AND CASH EQUIVALENTS ...................... (449) (2,217) (500)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR ................. 1,622 3,839 4,339
CASH AND CASH EQUIVALENTS, END OF YEAR ........................ $1,173 $ 1,622 $ 3,839
SUPPLEMENTAL DISCLOSURE ABOUT NON-CASH INVESTING AND
FINANCING ACTIVITIES:
Bankruptcy related settlements resulting in the receipt of treasury stock ............. $ 12 $ 29 $ 3
Capital lease obligation incurred ............................................ 12 66 61
Supplemental Cash Flow Data:
Income taxes paid, net of refunds ........................................ 107 372 576
Cash interest paid .................................................... 207 243 282
See accompanying Notes to Consolidated Financial Statements.
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