Staples 2006 Annual Report Download - page 110

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See notes to consolidated financial statements.
C-6
STAPLES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Dollar Amounts in Thousands)
Fiscal Year Ended
February 3, January 28, January 29,
2007 2006 2005
Operating activities:
Net income ........................................................... $ 973,677 $ 784,117 $ 664,575
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization........................................ 339,299 303,900 278,845
Stock-based compensation............................................ 168,736 129,806 114,861
Deferred income tax (benefit) expense ................................. (65,401 ) (96,189 ) 15,307
Excess tax benefits from stock-based compensation arrangements.......... (36,069 ) (36,748 ) (41,205)
Other .............................................................. (365 ) (6,513 ) 12,516
Change in assets and liabilities, net of companies acquired:
Increase in receivables ............................................. (128,010 ) (80,166 ) (49,786)
Increase in merchandise inventories.................................. (191,957 ) (97,538 ) (63,747)
Increase in prepaid expenses and other assets ......................... (44,298 ) (15,646 ) (8,736)
Increase in accounts payable........................................ 34,379 187,402 82,355
Increase in accrued expenses and other current liabilities . . . ............ 93,175 105,274 76,103
Increase in other long-term obligations............................... 21,823 20,922 56,915
Net cash provided by operating activities ............................... 1,164,989 1,198,621 1,138,003
Investing activities:
Acquisition of property and equipment................................. (528,475 ) (456,103 ) (335,435)
Acquisition of businesses, net of cash acquired .......................... (29,654 ) (40,560 ) (111,657)
Investment in joint venture, net of cash acquired......................... (2,096 ) (16,636 ) (29,330)
Proceeds from the sale of short-term investments........................ 8,358,384 8,097,199 10,708,696
Purchase of short-term investments.................................... (8,223,063 ) (8,218,049 ) (10,246,652)
Net cash used in investing activities .................................... (424,904 ) (634,149 ) (14,378)
Financing activities:
Proceeds from the exercise of stock options and the sale of stock under
employee stock purchase plans...................................... 195,263 181,997 206,394
Proceeds from borrowings ............................................ — 535 —
Payments on borrowings.............................................. (5,191 ) (16,735 ) (235,081)
Cash dividends paid.................................................. (160,883 ) (123,402 ) (99,527)
Excess tax benefits from stock-based compensation arrangements.......... 36,069 36,748 41,205
Purchase of treasury stock, net ........................................ (775,822 ) (663,145 ) (511,730)
Net cash used in financing activities ................................... (710,564 ) (584,002 ) (598,739)
Effect of exchange rate changes on cash ................................ 10,328 42 14,959
Net increase (decrease) in cash and cash equivalents....................... 39,849 (19,488 ) 539,845
Cash and cash equivalents at beginning of period .......................... 977,822 997,310 457,465
Cash and cash equivalents at end of period ............................... $ 1,017,671 $ 977,822 $ 997,310