Office Depot 2007 Annual Report Download - page 53

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The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
51
OFFICE DEPOT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
2007 2006 2005
Cash flows from operating activities:
Net earnings......................................................................................... $ 395,615 $ 503,471 $ 273,792
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation and amortization......................................................... 281,383 279,005 268,098
Charges for losses on inventories and receivables........................... 109,798 85,610 92,136
Net earnings from equity method investments ................................ (34,825) (27,125) (23,394)
Compensation expense for share-based payments........................... 37,738 39,889 49,328
Deferred income tax provision ........................................................ (1,022) (15,847) (109,946)
Gain on disposition of assets ........................................................... (25,190) (23,948) (7,947)
Facility closure costs and impairment charges ................................ — — 47,166
Asset impairments ........................................................................... — 7,450 133,483
Other operating activities................................................................. 2,927 (1,704) 10,563
Changes in assets and liabilities:
Decrease (increase) in receivables.......................................... 25,909 (128,558) 4,397
Increase in inventories............................................................. (191,685) (155,955) (49,096)
Net (increase) decrease in prepaid expenses and other
assets...................................................................................... (12,342) (23,212) 24,605
Net (decrease) increase in accounts payable, accrued
expenses and other long-term liabilities ................................ (176,921) 287,999 (77,315)
Total adjustments......................................................................... 15,770 323,604 362,078
Net cash provided by operating activities................................................ 411,385 827,075 635,870
Cash flows from investing activities:
Purchases of short-term investments ................................................... — (961,450) (2,037,015)
Sales of short-term investments........................................................... — 961,650 2,196,962
Acquisitions, net of cash acquired, and related payments ................... (48,036) (248,319) —
Capital expenditures ............................................................................ (460,571) (343,415) (260,773)
Proceeds from disposition of assets and other ..................................... 129,182 106,381 48,629
Dividends received.............................................................................. 25,000 — —
Restricted cash for pending transaction ............................................... (18,100) — —
Net cash used in investing activities........................................................ (372,525) (485,153) (52,197)
Cash flows from financing activities:
Net proceeds from exercise of stock options and sale of stock under
employee stock purchase plans ......................................................... 29,332 101,034 175,898
Tax benefit from employee share-based exercises .............................. 18,266 43,355 23,024
Acquisition of treasury stock under approved repurchase plans ......... (199,592) (970,640) (815,236)
Treasury stock additions from employee related plans........................ (11,201) (12,796) —
Proceeds from issuance of borrowings ................................................ 177,413 8,494 24,490
Payments on long- and short-term borrowings.................................... (6,292) (58,545) (38,901)
Net cash provided by (used in) financing activities................................. 7,926 (889,098) (630,725)
Effect of exchange rate changes on cash and cash equivalents.......... 2,616 17,531 (43,478)
Net increase (decrease) in cash and cash equivalents ......................... 49,402 (529,645) (90,530)
Cash and cash equivalents at beginning of period ................................... 173,552 703,197 793,727
Cash and cash equivalents at end of period ............................................. $ 222,954 $ 173,552 $ 703,197