The Gap 2013 Annual Report Download - page 63

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39
THE GAP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Fiscal Year
($ in millions) 2013 2012 2011
Cash flows from operating activities:
Net income $ 1,280 $ 1,135 $ 833
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 536 559 592
Amortization of lease incentives (66) (76) (86)
Share-based compensation 116 113 58
Tax benefit from exercise of stock options and vesting of stock units 50 33 10
Excess tax benefit from exercise of stock options and vesting of stock units (56) (34) (13)
Non-cash and other items (60) 11 74
Deferred income taxes 69 (37) (11)
Changes in operating assets and liabilities:
Merchandise inventory (193) (143) 4
Other current assets and other long-term assets (44) (44) (101)
Accounts payable 105 91 11
Accrued expenses and other current liabilities (5) 68 (45)
Income taxes payable, net of prepaid and other tax-related items (74) 146 (91)
Lease incentives and other long-term liabilities 47 114 128
Net cash provided by operating activities 1,705 1,936 1,363
Cash flows from investing activities:
Purchases of property and equipment (670) (659) (548)
Purchases of short-term investments — (200) (50)
Maturities of short-term investments 50 150 150
Acquisition of business — (129) —
Other (4) (6) (6)
Net cash used for investing activities (624) (844) (454)
Cash flows from financing activities:
Proceeds from issuance of short-term debt — — 16
Payments of short-term debt — (19) —
Proceeds from issuance of long-term debt 144 — 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 97 174 62
Repurchases of common stock (979) (1,030) (2,092)
Excess tax benefit from exercise of stock options and vesting of stock units 56 34 13
Cash dividends paid (321) (240) (236)
Other (1) — —
Net cash used for financing activities (1,004) (1,481) (602)
Effect of foreign exchange rate fluctuations on cash and cash equivalents (27) (36) 17
Net increase (decrease) in cash and cash equivalents 50 (425) 324
Cash and cash equivalents at beginning of period 1,460 1,885 1,561
Cash and cash equivalents at end of period $ 1,510 $ 1,460 $ 1,885
Non-cash investing activities:
Purchases of property and equipment not yet paid at end of period $ 90 $ 74 $ 61
Supplemental disclosure of cash flow information:
Cash paid for interest during the period $ 77 $ 83 $ 45
Cash paid for income taxes during the period $ 805 $ 582 $ 599
See Accompanying Notes to Consolidated Financial Statements