The Gap 2011 Annual Report Download - page 55

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THE GAP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Fiscal Year
($ in millions) 2011 2010 2009
Cash flows from operating activities:
Netincome ............................................................................... $ 833 $ 1,204 $1,102
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciationandamortization......................................................... 592 648 655
Amortizationofleaseincentives ....................................................... (86) (86) (82)
Share-basedcompensation ............................................................ 58 77 64
Taxbenefitfromexerciseofstockoptionsandvestingofstockunits ...................... 10 11 (2)
Excesstaxbenefitfromexerciseofstockoptionsandvestingofstockunits................ (13) (11) (4)
Non-cashandotheritems ............................................................. 74 55 16
Deferredincometaxes ................................................................ (11) 93 (50)
Changes in operating assets and liabilities:
Merchandiseinventory ........................................................... 4 (127) 43
Othercurrentassetsandotherlong-termassets .................................... (101) (87) 83
Accountspayable................................................................. 11 (7) 40
Accrued expenses and other current liabilities ...................................... (45) (141) (23)
Incometaxespayable,netofprepaidandothertax-relateditems .................... (91) 66 64
Lease incentives and other long-term liabilities ..................................... 128 49 22
Netcashprovidedbyoperatingactivities .................................................... 1,363 1,744 1,928
Cash flows from investing activities:
Purchasesofpropertyandequipment....................................................... (548) (557) (334)
Proceedsfromsaleofpropertyandequipment .............................................. —— 1
Purchasesofshort-terminvestments ....................................................... (50) (475) (350)
Maturitiesofshort-terminvestments....................................................... 150 600 125
Changeinotherassets .................................................................... (6) 3 21
Netcashusedforinvestingactivities........................................................ (454) (429) (537)
Cash flows from financing activities:
Proceedsfromissuanceofshort-termdebt .................................................. 16 6 —
Paymentsofshort-termdebt............................................................... — (3) —
Proceedsfromissuanceoflong-termdebt................................................... 1,646 — —
Paymentsoflong-termdebtissuancecosts.................................................. (11) — —
Paymentsoflong-termdebt ............................................................... — — (50)
Proceedsfromshare-basedcompensation,netofwithholdingtaxpayments ................... 62 70 56
Repurchasesofcommonstock ............................................................. (2,092) (1,959) (547)
Excesstaxbenefitfromexerciseofstockoptionsandvestingofstockunits .................... 13 11 4
Cashdividendspaid ....................................................................... (236) (252) (234)
Netcashusedforfinancingactivities ....................................................... (602) (2,127) (771)
Effectofforeignexchangeratefluctuationsoncash ......................................... 17 25 13
Netincrease(decrease)incashandcashequivalents ......................................... 324 (787) 633
Cashandcashequivalentsatbeginningofperiod............................................ 1,561 2,348 1,715
Cashandcashequivalentsatendofperiod .................................................. $ 1,885 $ 1,561 $2,348
Non-cash investing activities:
Purchasesofpropertyandequipmentnotyetpaidatendofperiod............................ $ 61 $ 59 $ 37
Supplemental disclosure of cash flow information:
Cashpaidforinterestduringtheperiod ..................................................... $ 45$ 1$ 3
Cashpaidforincometaxesduringtheperiod................................................ $ 599 $ 677 $ 702
See Accompanying Notes to Consolidated Financial Statements
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