| WD-40 Company Consolidated Statements of Cash Flows (In thousands) |
|||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Fiscal Year Ended August 31, | |||||||||||
| 2008 | 2007 | 2006 | |||||||||
| Operating activities: Net income |
$ | 27,622 | $ | 31,534 | $ | 28,112 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization |
3,827 | 3,649 | 3,467 | ||||||||
| Impairment of indefinite-lived intangible assets | 1,340 | — | — | ||||||||
| Net gains on sales and disposals of property and equipment | (41 | ) | (23 | ) | (38 | ) | |||||
| Deferred income tax expense | 911 | 2,336 | 1,396 | ||||||||
| Excess tax benefits from exercises of stock options | (294 | ) | (741 | ) | (503 | ) | |||||
| Distributions received and equity losses (earnings) from related party, net | 580 | (43 | ) | 140 | |||||||
| Stock-based compensation | 2,398 | 1,919 | 1,836 | ||||||||
| Changes in assets and liabilities: Trade accounts receivable |
(4,342 | ) | (1,365 | ) | 1,146 | ||||||
| Product held at contract packagers | (1,006 | ) | (62 | ) | 429 | ||||||
| Inventories | (5,375 | ) | 2,392 | (6,889 | ) | ||||||
| Other assets | (281 | ) | 1,362 | 1,976 | |||||||
| Accounts payable and accrued expenses and liabilities | 147 | 10,388 | (1,621 | ) | |||||||
| Accounts payable to related party | 959 | 1,043 | (1,481 | ) | |||||||
| Income taxes payable | 1,571 | (984 | ) | 147 | |||||||
| Deferred employee benefits and other long-term liabilities | 1,346 | 246 | 80 | ||||||||
Net cash provided by operating activities |
29,362 | 51,651 | 28,197 | ||||||||
Investing activities: Purchases of marketable securities |
(76,175 | ) | (224,675 | ) | (31,675 | ) | |||||
| Proceeds from sales of marketable securities | 76,175 | 224,675 | 31,675 | ||||||||
| Capital expenditures | (5,752 | ) | (2,561 | ) | (2,947 | ) | |||||
| Proceeds from sales of property and equipment | 215 | 319 | 267 | ||||||||
| Proceeds from collections on note receivable | — | 25 | 125 | ||||||||
| Net cash used in investing activities | (5,537 | ) | (2,217 | ) | (2,555 | ) | |||||
| Financing activities: Repayments of long-term debt |
(10,714 | ) | (10,714 | ) | (10,714 | ) | |||||
| Proceeds from issuance of common stock | 4,208 | 9,754 | 7,018 | ||||||||
| Excess tax benefits from exercises of stock options | 294 | 741 | 503 | ||||||||
| Treasury stock purchases | (17,720 | ) | (17,320 | ) | — | ||||||
| Dividends paid | (16,691 | ) | (16,609 | ) | (14,760 | ) | |||||
Net cash used in financing activities |
(40,623 | ) | (34,148 | ) | (17,953 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents |
(2,297 | ) | 586 | 397 | |||||||
| Net (decrease) increase in cash and cash equivalents | (19,095 | ) | 15,872 | 8,086 | |||||||
| Cash and cash equivalents at beginning of period | 61,078 | 45,206 | 37,120 | ||||||||
| Cash and cash equivalents at end of period | $ | 41,983 | $ | 61,078 | $ | 45,206 | |||||
Supplemental disclosures of cash flow information: Cash paid for interest and bank fees |
$ | 3,507 | $ | 4,118 | $ | 4,813 | |||||
| Cash paid for income taxes, net of tax refunds received | $ | 9,867 | $ | 13,501 | $ | 11,016 | |||||
The accompanying notes are an integral part of these consolidated financial statements.