Estee Lauder 2004 Annual Report Download - page 60

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THE EST{E LAUDER COMPANIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEAR ENDED JUNE 30 2004 2003 2002
(In millions)
Cash Flows from Operating Activities
Net earnings $ 342.1 $ 319.8 $ 191.9
Adjustments to reconcile net earnings to net cash flows provided by
operating activities from continuing operations:
Depreciation and amortization 191.7 174.8 162.0
Deferred income taxes 18.3 36.5 (22.6)
Minority interest 8.9 6.7 4.7
Non-cash stock compensation 7.9 1.5 (0.1)
Non-cash portion of restructuring and other non-recurring expenses —— 58.0
Discontinued operations 33.3 — 20.6
Other non-cash items 0.8 0.9 0.9
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable, net (18.4) 38.6 (15.4)
Decrease (increase) in inventory and promotional merchandise, net (45.7) (15.7) 102.2
Decrease (increase) in other assets 16.2 (15.3) (11.7)
Increase (decrease) in accounts payable 29.8 (8.4) (32.6)
Increase in accrued income taxes 17.3 5.4 28.8
Increase in other accrued liabilities 75.5 52.7 59.6
Decrease in other noncurrent liabilities (7.9) (44.4) (27.0)
Net cash flows provided by operating activities 669.8 553.1 519.3
Cash Flows from Investing Activities
Capital expenditures (206.5) (163.1) (203.2)
Acquisition of businesses, net of acquired cash (4.4) (50.4) (18.5)
Proceeds from divestitures 3.0 ——
Proceeds from disposition of long-term investments —21.0 4.7
Purchases of long-term investments (0.1) ——
Net cash flows used for investing activities (208.0) (192.5) (217.0)
Cash Flows from Financing Activities
Increase (decrease) in short-term debt, net (2.0) 2.9 0.6
Proceeds from issuance of long-term debt, net 195.5 — 247.2
Proceeds from the net settlement of treasury lock agreements 15.0 ——
Repayments and redemptions of long-term debt (293.7) (135.8) (256.6)
Net proceeds from employee stock transactions 61.4 16.7 7.7
Payments to acquire treasury stock (115.9) (352.5) (49.7)
Dividends paid to stockholders (68.5) (81.7) (71.0)
Distributions made to minority holders of consolidated subsidiaries (7.8) (4.6) (1.3)
Net cash flows used for financing activities (216.0) (555.0) (123.1)
Effect of Exchange Rate Changes on Cash and Cash Equivalents 4.2 11.6 21.0
Cash flows used for discontinued operations (2.5) ——
Net Increase (Decrease) in Cash and Cash Equivalents 247.5 (182.8) 200.2
Cash and Cash Equivalents at Beginning of Year 364.1 546.9 346.7
Cash and Cash Equivalents at End of Year $ 611.6 $ 364.1 $ 546.9
Supplemental disclosures of cash flow information (see Note 17)
Cash paid during the year for:
Interest $ 35.9 $ 17.7 $ 17.6
Income Taxes $ 193.1 $ 134.7 $ 120.5
See notes to consolidated financial statements.
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