Neiman Marcus 2008 Annual Report Download - page 95

Table of Contents
NEIMAN MARCUS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Fiscal year ended
(in thousands)
August 1,
2009
August 2,
2008
July 28,
2007
CASH FLOWS—OPERATING ACTIVITIES
Net (loss) earnings $ (668,046 ) $ 142,813 $ 111,932
Loss from discontinued operation — — 22,771
Adjustments to reconcile net (loss) earnings to net cash provided by
operating activities:
Depreciation and amortization expense 240,645 234,820 222,874
Impairment charges 703,266 31,261 11,473
Paid-in-kind interest 38,082 — —
Deferred income taxes (153,888 ) (44,627 ) (60,522 )
Gain on curtailment of defined benefit retirement obligations — (32,450 ) —
Other—primarily costs related to defined benefit pension and other
long-term benefit plans 10,185 21,997 20,531
170,244 353,814 329,059
Changes in operating assets and liabilities:
Merchandise inventories 223,010 (59,775 ) (124,648 )
Other current assets (10,156 ) (20,239 ) (12,597 )
Other assets (7,684 ) 3,118 (3,333 )
Accounts payable and accrued liabilities (167,269 ) (10,287 ) 53,461
Deferred real estate credits 17,668 33,694 27,885
Funding of defined benefit pension plan (15,000 )(15,000 )—
Net cash provided by operating activities — continuing operations 210,813 285,325 269,827
Net cash used for operating activities — discontinued operation — — (10,918 )
Net cash provided by operating activities 210,813 285,325 258,909
CASH FLOWS—INVESTING ACTIVITIES
Capital expenditures (101,525 ) (183,452 ) (147,877 )
Purchases of short-term investments — (10,000 ) —
Sales of short-term investments — 10,000 —
Payment to minority interest holder in Kate Spade LLC — — (59,400 )
Net proceeds from sale of Kate Spade LLC — — 121,469
Net cash used for investing activities — continuing operations (101,525 ) (183,452 ) (85,808 )
Net cash used for investing activities — discontinued operation — — (128 )
Net cash used for investing activities (101,525 )(183,452 )(85,936 )
CASH FLOWS—FINANCING ACTIVITIES
Repayment of borrowings (1,611 ) (3,900 ) (4,918 )
Debt issuance costs paid (23,432 ) — (1,449 )
Repayment of borrowings under senior term loan facility — — (250,000 )
Proceeds from purchase of common stock, exercises of stock options and
restricted stock grants — — 1,148
Net cash used for financing activities — continuing operations (25,043 ) (3,900 ) (255,219 )
Net cash used for financing activities — discontinued operation — — (1,675 )
Net cash used for financing activities (25,043 )(3,900 )(256,894 )
CASH AND CASH EQUIVALENTS
Increase (decrease) during the year 84,245 97,973 (83,921 )
Beginning balance 239,180 141,207 225,128
Ending balance $ 323,425 $ 239,180 $ 141,207
Supplemental Schedule of Cash Flow Information: