Chipotle 2008 Annual Report Download - page 43

CHIPOTLE MEXICAN GRILL, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
Years ended December 31
2008 2007 2006
Operating activities
Net income ........................................................... $ 78,202 $ 70,563 $ 41,423
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization ........................................ 52,770 43,595 34,253
Current income tax benefit .......................................... — — (782)
Deferred income tax (benefit) provision ................................ 13,165 (3,545) (1,857)
Change in valuation allowance ....................................... 89 521 —
Loss on disposal of assets ........................................... 9,339 6,168 3,982
Bad debt allowance ................................................ 440 — (59)
Stock-based compensation .......................................... 11,374 7,801 5,193
Other ........................................................... (226) 15 (323)
Changes in operating assets and liabilities:
Accounts receivable ............................................ 1,290 (508) (2,873)
Inventory .................................................... (457) (771) (880)
Prepaid expenses .............................................. (2,767) (1,885) 1,499
Other assets .................................................. (2,673) (469) (242)
Accounts payable .............................................. 3,635 2,065 912
Accrued liabilities ............................................. (529) 13,299 11,304
Income tax receivable/payable ................................... 9,250 (8,721) 2,222
Deferred rent ................................................. 23,817 17,561 9,714
Other long-term liabilities ....................................... 1,788 1,234 111
Net cash provided by operating activities ................................... 198,507 146,923 103,597
Investing activities
Purchases of leasehold improvements, property and equipment, net .............. (152,101) (140,545) (97,312)
Purchases of available-for-sale securities ................................... (99,990) (20,000) —
Maturity of available-for-sale securities .................................... 20,000 — —
Franchise acquisitions .................................................. — (5,668) —
Net cash used in investing activities ....................................... (232,091) (166,213) (97,312)
Financing activities
Net proceeds from sale of common stock ................................... — — 133,333
Costs of issuing common stock ........................................... — — (12,436)
Acquisition of treasury stock ............................................. (30,227) — —
Proceeds from McDonald’s—tax sharing agreement .......................... — 6,400 19,468
Proceeds from option exercises ........................................... 471 3,863 2,752
Excess tax benefit on stock-based compensation ............................. 284 6,632 1,357
Proceeds from McDonald’s—intercompany notes ............................ — — 2,248
Proceeds from deemed landlord financing .................................. — — 635
Payments on deemed landlord financing .................................... (76) (71) (61)
Net cash (used in) / provided by financing activities .......................... (29,548) 16,824 147,296
Net change in cash and cash equivalents .................................... (63,132) (2,466) 153,581
Cash and cash equivalents at beginning of year .............................. 151,176 153,642 61
Cash and cash equivalents at end of year ................................... $ 88,044 $ 151,176 $153,642
Supplemental disclosures of cash flow information
Income taxes paid ..................................................... $ 37,568 $ 48,550 $ 26,316
(Increase)/decrease in purchases of leasehold improvements, property and
equipment accrued in accounts payable .................................. $ (375) $ 1,752 $ (5,467)
See accompanying notes to consolidated financial statements.
41
Annual Report