Avon 2011 Annual Report Download - page 65

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CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions) Years ended December 31 2011 2010 2009
Cash Flows from Operating Activities
Net income $ 517.8 $ 609.3 $ 628.2
Discontinued operations, net of tax 8.6 (14.1) (9.0)
Income from continuing operations $ 526.4 $ 595.2 $ 619.2
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 174.0 145.2 127.8
Amortization 65.6 49.6 47.5
Provision for doubtful accounts 247.2 215.7 221.2
Provision for obsolescence 128.1 131.1 120.0
Share-based compensation 36.6 57.6 54.9
Foreign exchange losses (gains) 12.8 (9.4) (1.5)
Deferred income taxes (196.6) (103.1) (166.3)
Impairment of goodwill and intangible asset 263.0 – –
Charge for Venezuelan monetary assets and liabilities – 46.1 –
Other 39.9 26.6 57.6
Changes in assets and liabilities:
Accounts receivable (241.5) (280.3) (259.5)
Inventories (210.3) (189.8) (127.8)
Prepaid expenses and other 24.6 (4.9) (90.4)
Accounts payable and accrued liabilities (55.7) 76.7 145.0
Income and other taxes (50.7) (63.2) 16.1
Noncurrent assets and liabilities (107.6) (4.1) (9.1)
Net cash provided by operating activities of continuing operations 655.8 689.0 754.7
Cash Flows from Investing Activities
Capital expenditures (276.7) (331.2) (296.3)
Disposal of assets 17.1 11.9 11.2
Acquisitions and other investing activities (13.0) (785.8) 5.8
Proceeds from sale of investments 33.7 11.3 61.9
Purchases of investments (28.8) (1.9) (.9)
Net cash used by investing activities of continuing operations (267.7) (1,095.7) (218.3)
Cash Flows from Financing Activities*
Cash dividends (403.4) (384.1) (364.7)
Debt, net (maturities of three months or less) 635.7 (3.6) (507.6)
Proceeds from debt 88.9 661.5 957.8
Repayment of debt (614.6) (53.2) (450.5)
Proceeds from exercise of stock options 16.8 23.9 13.1
Excess tax benefit realized from share-based compensation (.2) 4.3 (.7)
Repurchase of common stock (7.7) (14.1) (8.6)
Net cash (used) provided by financing activities of continuing operations (284.5) 234.7 (361.2)
Cash Flows from Discontinued Operations
Net cash provided by operating activities of discontinued operations – 13.0 27.3
Net cash (used) provided by investing activities of discontinued operations (1.2) 61.3 (.6)
Net cash used by financing activities of discontinued operations – (.3) (.6)
Net cash (used) provided by discontinued operations (1.2) 74.0 26.1
Effect of exchange rate changes on cash and equivalents (37.2) (33.7) 5.6
Net change in cash and equivalents 65.2 (131.7) 206.9
Cash and equivalents at beginning of year(1) $1,179.9 $ 1,311.6 $1,104.7
Cash and equivalents at end of year(2) $1,245.1 $ 1,179.9 $1,311.6
Cash paid for:
Interest, net of amounts capitalized $ 137.4 $ 133.4 $ 127.5
Income taxes, net of refunds received $ 423.8 $ 387.3 $ 377.9
* – Non-cash financing activities included the change in fair market value of interest-rate swap agreements of $53.2 in 2011, $66.8 in 2010, and $(55.7)in
2009 (see Note 5, Debt and Other Financing).
(1) – Includes cash and cash equivalents of discontinued operations of $13.5 and $3.2 at the beginning of the year in 2010 and 2009 respectively.
(2) – Includes cash and cash equivalents of discontinued operations of $13.5 at the end of the year in 2009.
The accompanying notes are an integral part of these statements.
A V O N 2011 F-5