Avon 2004 Annual Report Download - page 31

Download and view the complete annual report

Please find page 31 of the 2004 Avon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 74

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74

Consolidated Statements of Cash Flows
In millions
Years ended December 31 2004 2003 2002
Cash Flows from Operating Activities
Net income $846.1 $664.8 $534.6
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 103.5 94.4 96.3
Amortization 30.2 29.1 28.5
Provision for doubtful accounts 140.0 124.8 108.3
Provision for obsolescence 65.5 55.6 58.9
Amortization of debt discount 1.6 9.7 18.1
Foreign exchange (gains) losses (1.1) 12.2 (20.3)
Deferred income taxes (55.0) 22.7 31.1
Net losses (gains) on investments 13.5 (.8) .5
Special charges (3.2) (3.9) 34.3
Other 7.2 25.1 13.0
Changes in assets and liabilities:
Accounts receivable (160.4) (142.6) (188.8)
Inventories (115.3) (66.4) (88.3)
Prepaid expenses and other (60.0) (23.9) (8.7)
Accounts payable and accrued liabilities 100.1 (48.6) 20.7
Income and other taxes 10.3 5.1 41.2
Noncurrent assets and liabilities (40.4) (12.0) (114.0)
Net cash provided by operating activities 882.6 745.3 565.4
Cash Flows from Investing Activities
Capital expenditures (250.1) (162.6) (126.5)
Disposal of assets 19.6 14.1 10.3
Acquisitions and other investing activities (47.5) (20.4) (10.2)
Purchases of investments (30.0) (37.7) (30.4)
Proceeds from sale of investments 28.6 28.2 33.8
Net cash used by investing activities (279.4) (178.4) (123.0)
Cash Flows from Financing Activities*
Cash dividends (269.7) (201.4) (191.2)
Book overdrafts .4 .7 (1.6)
Debt, net (maturities of three months or less) 23.2 (2.6) (10.5)
Proceeds from short-term debt 18.4 54.3 52.4
Retirement of short-term debt (237.4) (481.7) (67.0)
Proceeds from long-term debt — 248.9 —
Proceeds from exercise of stock options 122.3 100.6 64.7
Repurchase of common stock (224.2) (214.3) (178.6)
Net cash used by financing activities (567.0) (495.5) (331.8)
Effect of exchange rate changes on cash and equivalents 39.4 15.8 (12.3)
Net increase in cash and equivalents 75.6 87.2 98.3
Cash and equivalents at beginning of year 694.0 606.8 508.5
Cash and equivalents at end of year $769.6 $694.0 $606.8
Cash paid for:
Interest, net of amounts capitalized $ 35.4 $ 25.1 $ 37.1
Income taxes, net of refunds received $384.0 $298.7 $243.9
* Non-cash financing activities included the partial conversion of convertible notes of $48.3 in 2003, the exchange of debt of $125.0 in 2003, and the change
in fair market value of interest rate swap agreements of $8.6, $53.1, and $44.7 in 2004, 2003, and 2002, respectively (see Note 4, Debt and Other Financing).
The accompanying notes are an integral part of these statements.