Estee Lauder 2010 Annual Report Download - page 113

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112 THE EST{E LAUDER COMPANIES INC.
YEAR ENDED JUNE 30 2010 2009 2008
(In millions)
Cash Flows from Operating Activities
Net earnings $ 482.4 $ 226.8 $ 484.0
Adjustments to reconcile net earnings to net cash flows from
operating activities:
Depreciation and amortization 263.7 254.0 250.7
Deferred income taxes (24.7) (108.2) (115.6)
Non-cash stock-based compensation 57.0 51.5 47.2
Excess tax benefits from stock-based compensation arrangements (10.8) (1.4) (1.1)
Loss on disposal of property, plant and equipment 23.0 11.4 12.5
Goodwill, other intangible asset and long-lived asset impairments 48.4 63.1 14.0
Non-cash charges associated with restructuring activities 21.4 12.2 —
Non-cash charge on debt extinguishment 2.4 — —
Pension and post-retirement benefit expense 61.6 52.0 51.8
Pension and post-retirement benefit contributions (125.7) (71.3) (71.5)
Other non-cash items 0.6 1.2 1.7
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable, net 79.2 103.8 (86.5)
Decrease (increase) in inventory and promotional merchandise, net (60.8) 125.7 (70.7)
Decrease (increase) in other assets, net 29.3 (72.2) (5.7)
Increase (decrease) in accounts payable 103.6 (11.9) 17.1
Increase (decrease) in accrued income taxes (78.8) 24.5 122.6
Increase in other liabilities 84.9 34.8 39.6
Net cash flows provided by operating activities 956.7 696.0 690.1
Cash Flows from Investing Activities
Capital expenditures (270.6) (279.8) (357.8)
Acquisition of businesses and other intangible assets, net of cash acquired (10.7) (68.5) (116.0)
Proceeds from the disposition of long-term investments — 9.2 —
Purchases of long-term investments (0.1) (0.4) (4.7)
Net cash flows used for investing activities (281.4) (339.5) (478.5)
Cash Flows from Financing Activities
Increase (decrease) in short-term debt, net (7.5) (93.5) 54.8
Proceeds from issuance of long-term debt, net —297.7 —
Repayments and redemptions of long-term debt (227.2) (10.1) (5.9)
Net proceeds from stock-based compensation transactions 205.0 109.6 117.3
Excess tax benefits from stock-based compensation arrangements 10.8 1.4 1.1
Payments to acquire treasury stock (266.7) (62.6) (129.6)
Dividends paid to stockholders (109.1) (108.4) (106.6)
Payments to noncontrolling interest holders (11.4) (8.3) (9.2)
Net cash flows provided by (used for) financing activities (406.1) 125.8 (78.1)
Effect of Exchange Rate Changes on Cash and Cash Equivalents (13.0) (19.5) 14.5
Net Increase in Cash and Cash Equivalents 256.2 462.8 148.0
Cash and Cash Equivalents at Beginning of Year 864.5 401.7 253.7
Cash and Cash Equivalents at End of Year $1,120.7 $ 864.5 $ 401.7
2010
$ 482.4
263.7
(24.7)
57.0
(10.8)
23.0
48.4
21.4
2.4
61.6
(125.7)
0.6
79.2
(60.8)
29.3
103.6
(78.8)
84.9
956.7
(270.6)
(10.7)
—
(0.1)
(281.4)
(7.5)
—
(227.2)
205.0
10.8
(266.7)
(109.1)
(11.4)
(406.1)
(13.0)
256.2
864.5
$1,120.7
See notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS