17 Abercrombie &Fitch CONSOLIDATED STATEMENTS OF CASH FLOWS The accompanying Notes are an integral part of these Consolidated Financial Statements. ( Thousands ) 2002 2001 2000 Operating Activities Net Income $194,935 $168,672 $158,133 Impact of Other Operating Activities on Cash Flows Depreciation and Amortization 56,925 41,155 30,731 Noncash Charge for Deferred Compensation 2,295 3,936 4,340 Change in Assets and Liabilities Inventories (35,342) 12,121 (45,735) Accounts Payable and Accrued Expenses 41,766 5,272 21,626 Income Taxes 38,235 13,787 (8,420) Other Assets and Liabilities (5,668) (11,741) (9,486) Net Cash Provided by Operating Activities 293,146 233,202 151,189 Investing Activities Capital Expenditures (92,976) (126,515) (153,481) Proceeds from Maturities of Marketable Securities 61,220 – 45,601 Purchase of Marketable Securities – (71,220) – Collection (Issuances) of Note Receivable 4,954 (454) (3,000) Net Cash Used for Investing Activities (26,802) (198,189) (110,880) Financing Activities Purchase of Treasury Stock (42,691) (11,069) (43,929) Other Changes in Shareholders’ Equity (282) 6,139 (6,707) Net Cash Used for Financing Activities (42,973) (4,930) (50,636) Net Increase/(Decrease) in Cash and Equivalents 223,371 30,083 (10,327) Cash and Equivalents, Beginning of Year 167,664 137,581 147,908 Cash and Equivalents, End of Year $391,035 $167,664 $137,581 Significant Noncash Investing Activities Construction Allowance Receivables $ 8,778 $ 14,030 $ 8,668 Accrual for Construction in Progress $ 12,680 $ 25,338 $ 24,371