Avon 2007 Annual Report Download - page 57

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CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Years ended December 31 2007 2006 2005
Cash Flows from Operating Activities
Net income $ 530.7 $ 477.6 $ 847.6
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 128.9 115.6 106.5
Amortization 43.2 44.0 33.1
Provision for doubtful accounts 164.1 144.7 135.6
Provision for obsolescence 280.6 179.7 93.3
Share-based compensation 61.6 62.9 10.1
Foreign exchange (gains) losses (2.5) 4.0 (16.3)
Deferred income taxes (112.4) (110.7) (31.7)
Net gains on investments – – (2.4)
Asset write-off restructuring charges .2 8.0 21.2
Other 41.9 4.1 (2.7)
Changes in assets and liabilities:
Accounts receivable (254.5) (188.3) (163.5)
Inventories (341.0) (240.3) (162.0)
Prepaid expenses and other (31.2) (18.9) (2.7)
Accounts payable and accrued liabilities 169.9 323.4 126.4
Income and other taxes 61.6 40.3 (30.2)
Noncurrent assets and liabilities (151.3) (50.0) (66.8)
Net cash provided by operating activities 589.8 796.1 895.5
Cash Flows from Investing Activities
Capital expenditures (278.5) (174.8) (206.8)
Disposal of assets 11.2 16.4 30.3
Acquisitions and other investing activities (19.0) (39.4) (156.6)
Purchases of investments (47.0) (36.2) (107.9)
Proceeds from sale of investments 46.1 26.1 97.9
Net cash used by investing activities (287.2) (207.9) (343.1)
Cash Flows from Financing Activities*
Cash dividends (325.7) (317.6) (313.8)
Bank overdrafts 2.1 6.2 .4
Debt, net (maturities of three months or less) 247.5 (375.0) 731.5
Proceeds from debt 58.7 541.8 78.7
Repayment of debt (18.0) (31.3) (56.9)
Proceeds from exercise of stock options 85.5 32.5 61.4
Excess tax benefit realized from share-based compensation 19.6 8.1 –
Repurchase of common stock (666.8) (355.1) (728.0)
Net cash used by financing activities (597.1) (490.4) (226.7)
Effect of exchange rate changes on cash and equivalents 59.0 42.4 (36.6)
Net (decrease) increase in cash and equivalents (235.5) 140.2 289.1
Cash and equivalents at beginning of year 1,198.9 1,058.7 769.6
Cash and equivalents at end of year $ 963.4 $1,198.9 $1,058.7
Cash paid for:
Interest, net of amounts capitalized $ 113.2 $ 76.4 $ 51.0
Income taxes, net of refunds received $ 396.7 $ 333.2 $ 309.8
* Non-cash financing activities included the change in fair market value of interest rate swap agreements of $8.4, $21.8, and $15.3, in 2007, 2006, and 2005
respectively (see Note 4, Debt and Other Financing).
The accompanying notes are an integral part of these statements.
A V O N 2007 F-5