Foot Locker 2005 Annual Report Download - page 44

CONSOLIDATED STATEMENTS OF CASH FLOWS
2005 2004 2003
(in millions)
From Operating Activities
Net income ............................................................... $ 264 $ 293 $ 207
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 ...... (1) (38) 1
Restructuring charges .................................................. — 2 1
Cumulative effect of accounting change, net of tax .................... — — 1
Depreciation and amortization ......................................... 171 154 152
Restricted stock compensation expense ................................ 6 8 4
Tax benefit on stock compensation .................................... 3 10 2
Deferred income taxes ................................................. 24 50 (5)
Change in assets and liabilities:
Merchandise inventories ............................................ (111) (183) (63)
Accounts payable and other accruals ................................ 14 157 (17)
Repositioning and restructuring reserves ............................ — (1) (1)
Pension contributions ............................................... (26) (106) (50)
Income taxes ........................................................ (8) — 9
Other, net ........................................................... 18 (57) 23
Net cash provided by operating activities of continuing operations ...... 354 289 264
From Investing Activities
Acquisitions .............................................................. 1 (242) —
Gain from insurance recoveries ........................................... 3 — —
Purchases of short-term investments ..................................... (2,798) (2,884) (1,546)
Sales of short-term investments .......................................... 2,767 2,875 1,440
Lease acquisition costs ................................................... (8) (17) (15)
Capital expenditures ..................................................... (155) (156) (144)
Premiums paid on foreign currency option contracts ..................... (3) — —
Proceeds from foreign currency option contracts ......................... 6 — —
Net cash used in investing activities of continuing operations ........... (187) (424) (265)
From Financing Activities
Debt issuance costs ...................................................... — (2) —
(Reduction) increase in long-term debt .................................. (35) 175 (19)
Dividends paid on common stock ......................................... (49) (39) (21)
Issuance of common stock ............................................... 12 28 26
Treasury stock reissued under employee stock plans ...................... 2 5 1
Purchase of treasury shares .............................................. (35) — —
Net cash (used in) provided by financing activities of
continuing operations ................................................. (105) 167 (13)
Net Cash Provided by operating activities of Discontinued
Operations (revised — note 1) ...................................... — 1 7
Effect of Exchange Rate Fluctuations on Cash and Cash Equivalents ... 2 2 (8)
Net Change in Cash and Cash Equivalents .............................. 64 35 (15)
Cash and Cash Equivalents at Beginning of Year ....................... 225 190 205
Cash and Cash Equivalents at End of Year .............................. $ 289 $ 225 $ 190
Cash Paid During the Year:
Interest ............................................................... $ 20 $ 23 $ 25
Income taxes .......................................................... $ 93 $ 121 $ 77
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.
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