Avon 2008 Annual Report Download - page 57

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CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Years ended December 31 2008 2007 2006
Cash Flows from Operating Activities
Net income $ 875.3 $ 530.7 $ 477.6
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 141.9 128.9 115.6
Amortization 45.3 43.2 44.0
Provision for doubtful accounts 195.5 164.1 144.7
Provision for obsolescence 80.8 280.6 179.7
Share-based compensation 54.8 61.6 62.9
Foreign exchange losses (gains) 18.7 (2.5) 4.0
Deferred income taxes (62.4) (112.4) (110.7)
Asset write-off restructuring charges – .2 8.0
Other 48.3 41.9 4.1
Changes in assets and liabilities:
Accounts receivable (174.6) (236.6) (180.3)
Inventories (174.3) (341.0) (240.3)
Prepaid expenses and other (153.3) (49.1) (26.9)
Accounts payable and accrued liabilities (148.9) 169.9 323.4
Income and other taxes 47.5 61.6 40.3
Noncurrent assets and liabilities (46.5) (151.3) (50.0)
Net cash provided by operating activities 748.1 589.8 796.1
Cash Flows from Investing Activities
Capital expenditures (380.5) (278.5) (174.8)
Disposal of assets 13.4 11.2 16.4
Acquisitions and other investing activities – (19.0) (39.4)
Purchases of investments (77.7) (47.0) (36.2)
Proceeds from sale of investments 41.4 46.1 26.1
Net cash used by investing activities (403.4) (287.2) (207.9)
Cash Flows from Financing Activities*
Cash dividends (347.7) (325.7) (317.6)
Debt, net (maturities of three months or less) (216.9) 249.6 (368.8)
Proceeds from debt 572.6 58.7 541.8
Repayment of debt (73.9) (18.0) (31.3)
Proceeds from exercise of stock options 81.4 85.5 32.5
Excess tax benefit realized from share-based compensation 15.1 19.6 8.1
Repurchase of common stock (172.1) (666.8) (355.1)
Net cash used by financing activities (141.5) (597.1) (490.4)
Effect of exchange rate changes on cash and equivalents (61.9) 59.0 42.4
Net increase (decrease) in cash and equivalents 141.3 (235.5) 140.2
Cash and equivalents at beginning of year $ 963.4 $1,198.9 $1,058.7
Cash and equivalents at end of year $1,104.7 $ 963.4 $1,198.9
Cash paid for:
Interest, net of amounts capitalized $ 99.6 $ 113.2 $ 76.4
Income taxes, net of refunds received $ 388.7 $ 396.7 $ 333.2
* Non-cash financing activities included the change in fair market value of interest rate swap agreements of $83.6 $8.4, and $21.8, in 2008, 2007, and 2006
respectively (see Note 4, Debt and Other Financing).
The accompanying notes are an integral part of these statements.
A V O N 2008 F-5