Target 2007 Annual Report Download - page 44

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Consolidated Statements of Cash Flows
(millions) 2007 2006 2005
Operating activities
Net earnings $ 2,849 $ 2,787 $ 2,408
Reconciliation to cash flow
Depreciation and amortization 1,659 1,496 1,409
Share-based compensation expense 73 99 93
Deferred income taxes (70) (201) (122)
Bad debt provision 481 380 466
Loss on disposal of property and equipment, net 28 53 70
Other non-cash items affecting earnings 52 (35) (50)
Changes in operating accounts providing / (requiring) cash:
Accounts receivable originated at Target (602) (226) (244)
Inventory (525) (431) (454)
Other current assets (139) (30) (28)
Other noncurrent assets 101 5 (24)
Accounts payable 111 435 489
Accrued and other current liabilities 62 430 421
Other noncurrent liabilities 124 100 2
Other (79) —15
Cash flow provided by operations 4,125 4,862 4,451
Investing activities
Expenditures for property and equipment (4,369) (3,928) (3,388)
Proceeds from disposal of property and equipment 95 62 58
Change in accounts receivable originated at third parties (1,739) (683) (819)
Other investments (182) (144) —
Cash flow required for investing activities (6,195) (4,693) (4,149)
Financing activities
Additions to short-term notes payable 1,000 ——
Reductions of short-term notes payable (500) ——
Additions to long-term debt 7,617 1,256 913
Reductions of long-term debt (1,326) (1,155) (527)
Dividends paid (442) (380) (318)
Repurchase of stock (2,477) (901) (1,197)
Premiums on call options (331) ——
Stock option exercises and related tax benefit 210 181 231
Other (44) (5) (1)
Cash flow provided by / (required for) financing activities 3,707 (1,004) (899)
Net increase / (decrease) in cash and cash equivalents 1,637 (835) (597)
Cash and cash equivalents at beginning of year 813 1,648 2,245
Cash and cash equivalents at end of year $ 2,450 $ 813 $ 1,648
Amounts presented herein are on a cash basis and therefore may differ from those shown in other sections of this Annual Report.
Consistent with the provisions of Statement of Financial Accounting Standards (SFAS) No. 95, ‘‘Statement of Cash Flows,’’ cash flows
related to accounts receivable are classified as either an operating activity or an investing activity, depending on their origin.
Cash paid for income taxes was $1,734, $1,823 and $1,448 during 2007, 2006 and 2005, respectively. Cash paid for interest (net of
interest capitalized) was $633, $584 and $468 during 2007, 2006 and 2005, respectively.
See accompanying Notes to Consolidated Financial Statements.
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