Adidas 1997 Annual Report Download - page 36

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34
Year ended December 31,
1997 1996 1995
Operating activities:
Income before taxes and minority interests 676,981 444,405 296,085
Adjustments for:
Depreciation and amortization 81,508 64,474 52,584
Unrealized foreign exchange (gains) losses, net 6,532 (15,895) 1,460
Interest income (14,324) (9,109) (9,310)
Interest expense 47,663 43,108 47,247
Gains on sales of property and equipment, net (222) (320) (613)
Operating profit before working capital changes 798,138 526,663 387,453
Increase in receivables and other current assets (328,550) (149,129) (61,592)
Increase in inventories (465,244) (185,997) (127,373)
Increase in accounts payable and other current liabilities 257,152 102,730 20,651
Cash provided by operations 261,496 294,267 219,139
Interest paid (45,825) (48,181) (46,771)
Income taxes paid (137,803) (45,572) (41,387)
Net cash provided by operating activities 77,868 200,514 130,981
Investing activities:
Purchase of goodwill and other intangible assets (58,038) (81,133) (105,860)
Purchase of property and equipment (90,768) (73,907) (58,446)
Proceeds from sale of property and equipment 5,762 10,358 9,791
Acquisition of adidas Salomon France S.A. (see note 3) (941,976) 0 0
Acquisition of adidas Korea net of cash acquired 0 41,347 0
(Increase) decrease in other investments and long-term assets (1,287) (17,861) 3,143
Interest received 14,324 9,109 9,310
Net cash used in investing activities (1,071,983) (112,087) (142,062)
Financing activities:
Decrease in long-term bank borrowings, net (4,952) (14,837) (148,156)
Dividends of adidas-Salomon AG (see note 11) (49,884) (11,338) 0
Dividends to minority shareholders (12,502) (9,032) (4,280)
Increase (decrease) in short-term borrowings, net 1,051,160 (10,692) 167,261
Net cash provided by (used in) financing activities 983,822 (45,899) 14,825
Effect of exchange rates on cash (see note 18) (10,109) 613 (1,588)
Net increase (decrease) in cash and cash equivalents (20,402) 43,141 2,156
Cash and cash equivalents at beginning of year 83,976 40,835 38,679
Cash and cash equivalents at end of year 63,574 83,976 40,835
See accompanying notes to the consolidated financial statements
adidas-Salomon AG and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands of DM)