Restoration Hardware 2015 Annual Report Download - page 69

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66
RESTORATION HARDWARE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended
January 30, January 31, February 1,
2016 2015 2014
CASH FLOWS FROM OPERATING ACTIVITIES
N
et income ............................................................................................................................................... $91,103 $ 91,002 $ 18,195
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization .......................................................................................................... 44,595 34,463 27,654
Impairment of long-lived assets ........................................................................................................ 1,385
Amortization of purchase premiums and accretion of purchases discount—net ................................ 1,166
Amortization of debt discount ........................................................................................................... 22,114 7,969
Excess tax benefit from exercise of stock options ............................................................................. (10,443) (16,421) (3,685 )
Stock-based compensation expense................................................................................................... 24,223 17,072 67,622
Deferred income taxes ...................................................................................................................... (6,011 ) 2,693 5,602
Other non-cash interest expense ........................................................................................................ 2,473 1,342 671
Change in assets and liabilities:
Accounts receivable ................................................................................................................... (2,629) (3,991 ) (4,995 )
Merchandise inventories ............................................................................................................ (166,505) (106,036) (100,937)
Prepaid expense ......................................................................................................................... 8,929 15,123 (22,819)
Other current assets .................................................................................................................... 1,888 (6,030) (3,129 )
Accounts payable and accrued expenses .................................................................................... 44,378 25,470 57,318
Deferred revenue and customer deposits .................................................................................... 33,213 19,955 8,750
Other current liabilities .............................................................................................................. 39,580 (3,131 ) 28,883
Deferred rent and lease incentives .............................................................................................. 13,597 3,574 7,196
Other non-current obligations .................................................................................................... 215 (563 ) (190 )
Net cash provided by operating activities .......................................................................................... 141,886 82,491 87,521
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures ................................................................................................................................. (119,461) (110,359) (93,868)
Acquisition of buildings and land ............................................................................................................. (13,999)
Construction related deposits ................................................................................................................... (20,049) (9,250)
Purchase of trademarks and domain names .............................................................................................. (339) (453)
Purchase of investments ........................................................................................................................... (217,379) (91,604)
Maturities of investments ......................................................................................................................... 143,830 11,118
Net cash used in investing activities .................................................................................................. (227,397) (200,548) (93,868)
CASH FLOWS FROM FINANCING ACTIVITIES
Gross borrowings under revolving line of credit ...................................................................................... 749,945 1,670,876
Gross repayments under revolving line of credit ...................................................................................... (835,370) (1,667,952 )
Revolving line of credit deferred financing fees ....................................................................................... (2,133 )
Proceeds from issuance of convertible senior notes .................................................................................. 296,250 350,000
Proceeds from issuance of warrants ......................................................................................................... 30,390 40,390
Purchase of convertible note hedges......................................................................................................... (68,250) (73,325)
Debt issuance costs related to convertible senior notes ............................................................................ (2,382 ) (5,385)
Borrowings under build-to-suit lease transactions .................................................................................... 1,776
Payments on capital leases ....................................................................................................................... (248) (1,803 ) (2,555)
Proceeds from exercise of stock options ................................................................................................... 25,606 16,400 7,629
Excess tax benefit from exercise of stock options .................................................................................... 10,443 16,421 3,685
Tax withholdings related to issuance of stock-based awards .................................................................... (5,027) (3,116) (178)
Net cash provided by financing activities .......................................................................................... 286,782 253,800 11,505
Effects of foreign currency exchange rate translation ............................................................................... (308) (198) (123 )
Net increase in cash and cash equivalents ......................................................................................... 200,963 135,545 5,035
Cash and cash equivalents ........................................................................................................................
Beginning of period .......................................................................................................................... 148,934 13,389 8,354
End of period .................................................................................................................................... $349,897 $ 148,934 $ 13,389
Cash paid for interest ............................................................................................................................... $13,369 $ 8,611 $ 5,038
Cash paid for taxes ................................................................................................................................... 29,135 60,121 1,521
N
on-cash transactions:
Property and equipment additions due to build-to-suit lease transactions .......................................... 96,323 89,829 33,494
Property and equipment reduction due to effected sale leaseback (Note 5) .................................................. (74,855)
Property and equipment additions from use of construction related deposits .................................... 13,915
Property and equipment additions in accounts payable and accrued expenses at period-end ............. 12,108 10,875 4,204
Property and equipment acquired under capital lease ........................................................................ 88 38 238
Building acquired under capital lease ................................................................................................ 6,798
Trademarks and domain names additions in accounts payable and accrued expenses at period-end ............ 107
Issuance of non-current notes payable related to share repurchases from former employees ............ 238 16,575 2,710
The accompanying notes are an integral part of these Consolidated Financial Statements.