Foot Locker 2006 Annual Report Download - page 46

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30
CONSOLIDATED STATEMENTS OF CASH FLOWS
2006 2005 2004
(in millions)
From Operating Activities
Net income ........................................................ $ 251 $ 264 $ 293
Adjustments to reconcile net income to net cash provided by operating
activities of continuing operations:
Income on disposal of discontinued operations, net of tax .................. (3) (1) (38)
Impairment charge ................................................ 17 — —
Cumulative effect of accounting change, net of tax........................ (1) — —
Depreciation and amortization ....................................... 175 171 154
Share-based compensation expense ................................... 10 6 8
Deferred income taxes ............................................. 21 24 50
Change in assets and liabilities:
Merchandise inventories ......................................... (38) (111) (183)
Accounts payable and other accruals ................................ (103) 14 157
Qualified pension plan contributions ............................... (68) (26) (106)
Income taxes.................................................. (3) (8) —
Other, net .................................................... (69) 16 (63)
Net cash provided by operating activities of continuing operations.............. 189 349 272
From Investing Activities
Acquisitions ....................................................... — 1 (242)
Gain from lease termination ........................................... 4 — —
Gain from insurance recoveries ......................................... 4 3 —
Purchases of short-term investments..................................... (1,992) (2,798) (2,884)
Sales of short-term investments......................................... 2,041 2,767 2,875
Capital expenditures ................................................. (165) (155) (156)
Net cash used in investing activities of continuing operations ................. (108) (182) (407)
From Financing Activities
Debt issuance costs.................................................. — — (2)
(Reduction) increase in long-term debt ................................... (86) (35) 175
Repayment of capital lease ............................................ (1) — —
Dividends paid on common stock........................................ (61) (49) (39)
Issuance of common stock............................................. 9 12 28
Treasury stock reissued under employee stock plans.......................... 3 2 5
Purchase of treasury shares ............................................ (8) (35) —
Tax benefit on stock compensation ...................................... 2 — —
Net cash (used in) provided by financing activities of continuing operations....... (142) (105) 167
Net Cash (Used In) Provided by operating activities of Discontinued Operations . . (8) — 1
Effect of Exchange Rate Fluctuations on Cash and Cash Equivalents ............. 1 2 2
Net Change in Cash and Cash Equivalents ................................. (68) 64 35
Cash and Cash Equivalents at Beginning of Year ............................ 289 225 190
Cash and Cash Equivalents at End of Year ................................. $ 221 $ 289 $ 225
Cash Paid During the Year:
Interest ........................................................ $ 20 $ 21 $ 23
Income taxes .................................................... $ 133 $ 93 $ 121
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.