Foot Locker 2004 Annual Report Download - page 42

CONSOLIDATED STATEMENTS OF CASH FLOWS
2004 2003 2002
(in millions)
From Operating Activities
Net income ............................................................... $ 293 $ 207 $ 153
Adjustments to reconcile net income to net cash provided
by operating activities of continuing operations:
(Income) loss on disposal of discontinued operations, net of tax ...... (38) 1 9
Restructuring charges (income) ........................................ 2 1 (2)
Cumulative effect of accounting change, net of tax .................... — 1 —
Depreciation and amortization ......................................... 154 152 153
Impairment of long-lived assets ....................................... — — 7
Restricted stock compensation expense ................................ 8 4 2
Tax benefit on stock compensation .................................... 10 2 2
Gains on sales of real estate and assets ................................ — — (3)
Deferred income taxes ................................................. 50 (5) 38
Change in assets and liabilities, net of dispositions:
Merchandise inventories ............................................ (183) (63) (22)
Accounts payable and other accruals ................................ 157 (17) (22)
Repositioning and restructuring reserves ............................ (1) (1) (3)
Pension contribution ................................................ (106) (50) —
Income taxes ........................................................ — 9 42
Other, net ........................................................... (57) 23 (7)
Net cash provided by operating activities of continuing operations ...... 289 264 347
From Investing Activities
Acquisitions .............................................................. (242) — —
Purchases of short-term investments ..................................... (2,884) (1,546) (536)
Sales of short-term investments........................................... 2,875 1,440 384
Lease acquisition costs ................................................... (17) (15) (18)
Capital expenditures ..................................................... (156) (144) (150)
Proceeds from sales of real estate and assets ............................. — — 6
Net cash used in investing activities of continuing operations ........... (424) (265) (314)
From Financing Activities
Debt issuance costs ...................................................... (2) — —
Increase (reduction) in long-term debt ................................... 175 (19) (41)
Reduction in capital lease obligations .................................... — — (1)
Dividends paid on common stock ......................................... (39) (21) (4)
Issuance of common stock ............................................... 33 27 10
Net cash provided by (used in) financing activities of
continuing operations ................................................. 167 (13) (36)
Net Cash Provided by (Used in) Discontinued Operations ............. 1 7 (10)
Effect of Exchange Rate Fluctuations on Cash and Cash Equivalents ...... 2 (8) 3
Net Change in Cash and Cash Equivalents .............................. 35 (15) (10)
Cash and Cash Equivalents at Beginning of Year ....................... 190 205 215
Cash and Cash Equivalents at End of Year .............................. $ 225 $ 190 $ 205
Cash Paid During the Year:
Interest ............................................................... $ 23 $ 25 $ 27
Income taxes .......................................................... $ 121 $ 77 $ 39
Non-cash Financing Activities:
Common stock issued upon conversion of convertible debt ............ $ 150 $ — $ —
Debt issuance costs reclassified to equity upon conversion
of convertible debt .................................................. $ 3 $ — $ —
See Accompanying Notes to Consolidated Financial Statements.
26