DSW 2010 Annual Report Download - page 51

DSW INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED JANUARY 29, 2011, JANUARY 30, 2010 AND JANUARY 31, 2009
January 29,
2011
January 30,
2010
January 31,
2009
(In thousands)
Cash flows from operating activities:
Net income ............................................... $107,624 $ 54,741 $ 26,902
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization . . ................................ 47,825 46,260 36,336
Amortization of debt issuance costs .............................. 159 118 118
Stock-based compensation expense............................... 4,024 5,488 4,522
Deferred income taxes ....................................... 11,694 (12,105) (889)
Loss on disposal of assets ..................................... 1,621 1,024 1,676
Impairment charges on long-lived assets ........................... 856 3,339
Grants of director stock units . . . ................................ 858 599 606
Other-than-temporary impairment charges on investments............... 2,895 1,134
Other.................................................... (2,996) (238) (4,066)
Change in working capital, assets and liabilities:
Accounts receivable........................................ (7,510) (1,662) 3,693
Inventories .............................................. (46,729) (18,276) 18,029
Prepaid expenses and other assets .............................. (3,496) 3,775 (1,656)
Accounts payable ......................................... 26,650 26,666 (15,112)
Proceeds from construction and tenant allowances . ................. 5,875 7,106 16,106
Accrued expenses ......................................... (4,650) 47,206 6,371
Net cash provided by operating activities .......................... 140,949 164,453 97,109
Cash flows from investing activities:
Cash paid for property and equipment ............................ (46,735) (23,080) (82,191)
Purchases of available-for-sale investments ......................... (27,957) (200,002) (205,558)
Purchases of held-to-maturity investments .......................... (274,425) (23,983) (2,000)
Maturities and sales of available-for-sale investments . ................. 77,009 153,753 183,604
Maturities and sales of held-to-maturity investments . ................. 96,011 6,925 2,000
Activity related to equity investment — related party . ................. 199 (1,151)
Acquisition of tradename...................................... (225)
Net cash used in investing activities .............................. (176,123) (87,538) (104,145)
Cash flows from financing activities:
Proceeds from exercise of stock options ........................... 3,379 1,323 17
Debt issuance costs .......................................... (783)
Excess tax benefit — related to stock option exercises ................. 1,175
Purchase of DSW Class B Common Shares from RVI ................. (8,000)
Net cash provided by (used in) financing activities . . ................. 3,771 (6,677) 17
Net (decrease) increase in cash and equivalents ...................... (31,403) 70,238 (7,019)
Cash and equivalents, beginning of period ......................... 125,020 54,782 61,801
Cash and equivalents, end of period .............................. $ 93,617 $ 125,020 $ 54,782
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Income taxes ............................................ $ 82,098 $ 23,050 $ 13,399
Non-cash investing and operating activities:
Balance of accounts payable and accrued expenses due to property and
equipment purchases ..................................... $ 7,522 $ 1,962 $ 3,282
Adjustment to and non-cash capital contribution from RVI ............ $ (896) $ 4,670 $ 787
(Decrease) in accounts payable related to recovery from RVI of shared
service asset impairment . . ................................ $ (1,818)
Amortization of investment premiums and discounts ................ $ 3,035
The accompanying Notes are an integral part of the Consolidated Financial Statements.
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