Avon 2012 Annual Report Download - page 71

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CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions) Years ended December 31 2012 2011 2010
Cash Flows from Operating Activities
Net (loss) income $ (38.2) $ 517.8 $ 609.3
Discontinued operations, net of tax – 8.6 (14.1)
(Loss) income from continuing operations $ (38.2) $ 526.4 $ 595.2
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation 162.4 174.0 145.2
Amortization 67.2 65.6 49.6
Provision for doubtful accounts 251.1 247.2 215.7
Provision for obsolescence 122.1 128.1 131.1
Share-based compensation 41.1 36.6 57.6
Foreign exchange losses (gains) (22.2) 12.8 (9.4)
Deferred income taxes (49.2) (196.6) (103.1)
Impairment of goodwill and intangible asset 253.0 263.0 –
Charge for Venezuelan monetary assets and liabilities – – 46.1
Other 57.7 39.9 26.6
Changes in assets and liabilities:
Accounts receivable (241.1) (241.5) (280.3)
Inventories (89.7) (210.3) (189.8)
Prepaid expenses and other 58.5 24.6 (4.9)
Accounts payable and accrued liabilities 84.5 (55.7) 76.7
Income and other taxes (28.7) (50.7) (63.2)
Noncurrent assets and liabilities (72.4) (107.6) (4.1)
Net cash provided by operating activities of continuing operations 556.1 655.8 689.0
Cash Flows from Investing Activities
Capital expenditures (228.8) (276.7) (331.2)
Disposal of assets 15.4 17.1 11.9
Acquisitions and other investing activities – (13.0) (785.8)
Proceeds from sale of investments 1.2 33.7 11.3
Purchases of investments (1.5) (28.8) (1.9)
Net cash used by investing activities of continuing operations (213.7) (267.7) (1,095.7)
Cash Flows from Financing Activities*
Cash dividends (329.3) (403.4) (384.1)
Debt, net (maturities of three months or less) (710.5) 635.7 (3.6)
Proceeds from debt 735.8 88.9 661.5
Repayment of debt (138.3) (614.6) (53.2)
Interest rate swap termination 43.6 – –
Proceeds from exercise of stock options 8.6 16.8 23.9
Excess tax benefit realized from share-based compensation (2.4) (.2) 4.3
Repurchase of common stock (8.8) (7.7) (14.1)
Net cash (used) provided by financing activities of continuing operations (401.3) (284.5) 234.7
Cash Flows from Discontinued Operations
Net cash provided by operating activities of discontinued operations – – 13.0
Net cash (used) provided by investing activities of discontinued operations – (1.2) 61.3
Net cash used by financing activities of discontinued operations – – (.3)
Net cash (used) provided by discontinued operations – (1.2) 74.0
Effect of exchange rate changes on cash and equivalents 23.4 (37.2) (33.7)
Net change in cash and equivalents (35.5) 65.2 (131.7)
Cash and equivalents at beginning of year(1) $1,245.1 $1,179.9 $ 1,311.6
Cash and equivalents at end of year $1,209.6 $1,245.1 $ 1,179.9
Cash paid for:
Interest, net of amounts capitalized $ 137.5 $ 137.4 $ 133.4
Income taxes, net of refunds received $ 331.9 $ 423.8 $ 387.3
* – Non-cash financing activities included the change in fair market value of interest-rate swap agreements of $(8.4) in 2012, $53.2 in 2011, and $66.8 in 2010
(see Note 5, Debt and Other Financing).
(1) – Includes cash and cash equivalents of discontinued operations of $13.5 at the beginning of the year in 2010.
The accompanying notes are an integral part of these statements.