Coach 2010 Annual Report Download - page 51

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TABLE OF CONTENTS
COACH, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
Fiscal Year Ended
July 2,
2011
July 3,
2010
June 27,
2009
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 880,800 $ 734,940 $ 623,369
Adjustments to reconcile net income to net cash from operating
activities:
Depreciation and amortization 125,106 126,744 123,014
Provision for bad debt 2,014 (698) 909
Share-based compensation 95,830 81,420 67,542
Excess tax (benefit) deficit from share-based compensation (58,164) (27,616) 871
Deferred income taxes 39,724 (17,129) 13,660
Other noncash credits and (charges), net 9,790 (10,449) 10,151
Changes in operating assets and liabilities:
(Increase) decrease in trade accounts receivable (31,831) 4,344 3,309
(Increase) decrease in inventories (64,720) (33,878) 4,070
(Increase) decrease in other assets (42,174) 35,640 31,155
Increase in other liabilities 13,421 28,477 211
Increase (decrease) in accounts payable 9,742 1,019 (37,017)
Increase (decrease) in accrued liabilities 53,733 68,063 (32,092)
Net cash provided by operating activities 1,033,271 990,877 809,152
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of interest in equity method investment (9,559) — —
Acquisition of distributor — (1,200) (24,400)
Purchases of property and equipment (147,744) (81,116) (137,029)
Purchase of corporate headquarters building — — (103,300)
Purchases of investments (224,007) (229,860) —
Proceeds from sales and maturities of investments 321,679 129,932 —
Net cash used in investing activities (59,631) (182,244) (264,729)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend payments (178,115) (94,324) —
Repurchase of common stock (1,098,000) (1,149,998) (453,786)
Repayment of long-term debt (746) (679) (285)
(Repayments) borrowings on revolving credit facility, net — (7,496) 7,496
Proceeds from share-based awards, net 343,571 204,982 7,363
Excess tax benefit (deficit) from share-based compensation 58,164 27,616 (871)
Net cash used in financing activities (875,126) (1,019,899) (440,083)
Effect of exchange rate changes on cash and cash equivalents 4,798 7,374 (2,883)
Increase (decrease) increase in cash and cash equivalents 103,312 (203,892) 101,457
Cash and cash equivalents at beginning of year 596,470 800,362 698,905
Cash and cash equivalents at end of year $ 699,782 $ 596,470 $ 800,362
Supplemental information:
Cash paid for income taxes $ 364,493 $ 364,156 $ 336,091
Cash paid for interest $ 1,233 $ 1,499 $ 2,014
Noncash investing activity – property and equipment obligations $ 23,173 $ 16,526 $ 20,520
Noncash financing activity – mortgage debt assumed $ — $ — $ 23,000
See accompanying Notes to Consolidated Financial Statements.
47