Chipotle 2009 Annual Report Download - page 42

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CHIPOTLE MEXICAN GRILL, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
Years ended December 31
2009 2008 2007
Operating activities
Net income ................................................... $126,845 $ 78,202 $ 70,563
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization ................................ 61,308 52,770 43,595
Deferred income tax (benefit) provision ........................ 8,282 13,165 (3,545)
Change in valuation allowance ............................... 141 89 521
Loss on disposal of assets ................................... 5,956 9,339 6,168
Bad debt allowance ........................................ (245) 440 —
Stock-based compensation ................................... 14,992 11,374 7,801
Other .................................................... 222 (226) 15
Changes in operating assets and liabilities:
Accounts receivable .................................... (875) 1,290 (508)
Inventory ............................................ (825) (457) (771)
Prepaid expenses ...................................... (2,613) (2,767) (1,885)
Other assets .......................................... 374 (2,673) (469)
Accounts payable ...................................... 1,435 3,635 2,065
Accrued liabilities ..................................... 19,804 (529) 13,299
Income tax receivable/payable ............................ 4,492 9,250 (8,721)
Deferred rent ......................................... 19,386 23,817 17,561
Other long-term liabilities ............................... 1,994 1,788 1,234
Net cash provided by operating activities ........................... 260,673 198,507 146,923
Investing activities
Purchases of leasehold improvements, property and equipment, net ...... (117,198) (152,101) (140,545)
Purchases of available-for-sale securities ........................... (50,000) (99,990) (20,000)
Maturity of available-for-sale securities ............................ 99,990 20,000 —
Franchise acquisitions .......................................... — — (5,668)
Net cash used in investing activities ............................... (67,208) (232,091) (166,213)
Financing activities
Acquisition of treasury stock ..................................... (84,089) (30,227) —
Proceeds from former parent company under tax sharing agreement ...... — — 6,400
Proceeds from option exercises ................................... 11,793 471 3,863
Excess tax benefit on stock-based compensation ...................... 10,435 284 6,632
Payments on deemed landlord financing ............................ (82) (76) (71)
Net cash (used in) provided by financing activities .................... (61,943) (29,548) 16,824
Net change in cash and cash equivalents ............................ 131,522 (63,132) (2,466)
Cash and cash equivalents at beginning of year ....................... 88,044 151,176 153,642
Cash and cash equivalents at end of year ............................ $219,566 $ 88,044 $ 151,176
Supplemental disclosures of cash flow information
Income taxes paid .............................................. $ 53,644 $ 37,568 $ 48,550
(Increase) decrease in purchases of leasehold improvements, property and
equipment accrued in accounts payable ........................... $ 95 $ (375) $ 1,752
See accompanying notes to consolidated financial statements.
40
Annual Report