Avon 2009 Annual Report Download - page 69

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CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Years ended December 31 2009 2008 2007
Cash Flows from Operating Activities
Net income $628.2 $875.6 $533.3
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 133.0 141.9 128.9
Amortization 47.7 45.3 43.2
Provision for doubtful accounts 221.7 195.5 164.1
Provision for obsolescence 122.9 80.8 280.6
Share-based compensation 54.9 54.8 61.6
Foreign exchange losses (gains) (1.4) 18.7 (2.5)
Deferred income taxes (162.7) (62.4) (112.4)
Other 68.3 48.0 39.5
Changes in assets and liabilities:
Accounts receivable (261.0) (174.6) (236.6)
Inventories (125.5) (174.3) (341.0)
Prepaid expenses and other (72.9) (153.3) (49.1)
Accounts payable and accrued liabilities 126.2 (148.9) 169.9
Income and other taxes 16.0 47.5 61.6
Noncurrent assets and liabilities (13.4) (46.5) (151.3)
Net cash provided by operating activities 782.0 748.1 589.8
Cash Flows from Investing Activities
Capital expenditures (296.9) (380.5) (278.5)
Disposal of assets 11.2 13.4 11.2
Purchases of investments (.9) (77.7) (47.0)
Proceeds from sale of investments 61.9 41.4 46.1
Other investing activities 5.8 –(19.0)
Net cash used by investing activities (218.9) (403.4) (287.2)
Cash Flows from Financing Activities*
Cash dividends (364.8) (347.7) (325.7)
Debt, net (maturities of three months or less) (508.1) (216.9) 249.6
Proceeds from debt 957.7 572.6 58.7
Repayment of debt (450.4) (73.9) (18.0)
Proceeds from exercise of stock options 13.1 81.4 85.5
Excess tax benefit realized from share-based compensation (.7) 15.1 19.6
Repurchase of common stock (8.6) (172.1) (666.8)
Net cash used by financing activities (361.8) (141.5) (597.1)
Effect of exchange rate changes on cash and equivalents 5.6 (61.9) 59.0
Net change in cash and equivalents 206.9 141.3 (235.5)
Cash and equivalents at beginning of year $1,104.7 $963.4 $1,198.9
Cash and equivalents at end of year $1,311.6 $1,104.7 $963.4
Cash paid for:
Interest, net of amounts capitalized $127.5 $99.6 $113.2
Income taxes, net of refunds received $380.4 $388.7 $396.7
*Non-cash financing activities included the change in fair market value of interest rate swap agreements of $(55.7) in 2009, $83.6 in 2008, and $8.4 in 2007
(see Note 4, Debt and Other Financing).
The accompanying notes are an integral part of these statements.
AVON2009 F-5