The Gap 2012 Annual Report Download - page 54

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36
THE GAP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Fiscal Year
($ in millions) 2012 2011 2010
Cash flows from operating activities:
Net income $ 1,135 $ 833 $ 1,204
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 559 592 648
Amortization of lease incentives (76) (86) (86)
Share-based compensation 113 58 77
Tax benefit from exercise of stock options and vesting of stock units 33 10 11
Excess tax benefit from exercise of stock options and vesting of stock units (34) (13) (11)
Non-cash and other items 11 74 55
Deferred income taxes (37) (11) 93
Changes in operating assets and liabilities:
Merchandise inventory (143) 4 (127)
Other current assets and other long-term assets (44) (101) (87)
Accounts payable 91 11 (7)
Accrued expenses and other current liabilities 68 (45) (141)
Income taxes payable, net of prepaid and other tax-related items 146 (91) 66
Lease incentives and other long-term liabilities 114 128 49
Net cash provided by operating activities 1,936 1,363 1,744
Cash flows from investing activities:
Purchases of property and equipment (659) (548) (557)
Purchases of short-term investments (200) (50) (475)
Maturities of short-term investments 150 150 600
Acquisition of business (129) — —
Other (6) (6) 3
Net cash used for investing activities (844) (454) (429)
Cash flows from financing activities:
Proceeds from issuance of short-term debt — 16 6
Payments of short-term debt (19) — (3)
Proceeds from issuance of long-term debt — 1,646 —
Payments of long-term debt issuance costs — (11) —
Payments of long-term debt (400) — —
Proceeds from issuances under share-based compensation plans, net of withholding tax
payments of $147, $140, and $88 174 62 70
Repurchases of common stock (1,030) (2,092) (1,959)
Excess tax benefit from exercise of stock options and vesting of stock units 34 13 11
Cash dividends paid (240) (236) (252)
Net cash used for financing activities (1,481) (602) (2,127)
Effect of foreign exchange rate fluctuations on cash and cash equivalents (36) 17 25
Net increase (decrease) in cash and cash equivalents (425) 324 (787)
Cash and cash equivalents at beginning of period 1,885 1,561 2,348
Cash and cash equivalents at end of period $ 1,460 $ 1,885 $ 1,561
Non-cash investing activities:
Purchases of property and equipment not yet paid at end of period $ 74 $ 61 $ 59
Supplemental disclosure of cash flow information:
Cash paid for interest during the period $ 83 $ 45 $ 1
Cash paid for income taxes during the period $ 582 $ 599 $ 677
See Accompanying Notes to Consolidated Financial Statements
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