Pier 1 2008 Annual Report Download - page 37

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Pier 1 Imports, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
2008 2007 2006
Year Ended
Cash flow from operating activities:
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (96,011) $(227,645) $ (39,804)
Adjustments to reconcile to net cash used in operating activities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,608 63,496 78,781
(Gain) loss on disposal of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,137) 187 1,781
Loss on impairment of fixed assets and other long-lived assets . . . . . . . . . . . . . 5,030 36,369 6,024
Write-down of assets held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 7,441
Stock-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,837 5,464 636
Deferred compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,157 16,915 10,766
Lease termination expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,440 4,003 4,176
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 24,576 (14,496)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 639 (3,121) 236
Change in cash from:
Sale of receivables in exchange for beneficial interest in securitized
receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (15,914) (74,550)
Purchase of proprietary credit card receivables and other . . . . . . . . . . . . . . . . . — (97,740) —
Proceeds from the sale of proprietary credit card operations . . . . . . . . . . . . . . . — 144,622 —
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (51,646) 9,757 882
Other accounts receivable, prepaid expenses and other current assets . . . . . . . . . (8,776) (14,428) (22,778)
Income tax receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,616 (16,955) (18,011)
Accounts payable and accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24,447) (5,388) 7,369
Income taxes payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,765 (1,595) (6,966)
Defined benefit plan liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,351) (25,495) —
Other noncurrent assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,457 566 (2,558)
Other noncurrent liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,255) (2,579) (3,226)
Net cash used in operating activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (83,074) (104,905) (64,297)
Cash flow from investing activities:
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,153) (28,600) (50,979)
Proceeds from disposition of properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,674 173 1,401
Proceeds from sale of discontinued operation . . . . . . . . . . . . . . . . . . . . . . . . . . . — 11,601 —
Proceeds from sale of Pier 1 National Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 10,754 —
Proceeds from sale of restricted investments . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,986 25,707 3,226
Purchase of restricted investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (589) (9,712) (3,500)
Collection of note receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500 — —
Collections of principal on beneficial interest in securitized receivables. . . . . . . . . — 21,907 60,240
Net cash provided by investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . 6,418 31,830 10,388
Cash flow from financing activities:
Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (17,398) (34,667)
Purchases of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (4,047)
Proceeds from stock options exercised, stock purchase plan and other, net. . . . . . . 3,909 4,719 7,641
Issuance of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 165,000
Notes payable borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 69,000 86,500
Repayment of notes payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (69,000) (86,500)
Debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (998) (283) (6,739)
Purchase of call option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (9,145)
Net cash provided by (used in) financing activities . . . . . . . . . . . . . . . . . . . 2,911 (12,962) 118,043
Change in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (73,745) (86,037) 64,134
Cash and cash equivalents at beginning of period (including cash at discontinued
operation of $0, $7,100 and $3,359, respectively) . . . . . . . . . . . . . . . . . . . . . . . . 167,178 253,215 189,081
Cash and cash equivalents at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 93,433 $ 167,178 $253,215
Supplemental cash flow information:
Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,138 $ 12,821 $ 8,136
Income taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,124 $ 2,021 $ 21,342
The accompanying notes are an integral part of these financial statements.
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