Honda 2008 Annual Report Download - page 69

A n n u a l R e p o r t 2 0 0 8 6 7
Honda Motor Co., Ltd. and Subsidiaries
Years ended March 31, 2006, 2007 and 2008 Yen
(millions)
U.S. dollars
(millions)
(note 2)
2006 2007 2008 2008
Cash flows from operating activities (note 14):
Net income ¥ 597,033 ¥ 592,322 ¥ 600,039 $ 5,989
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation excluding property on operating leases
262,225 361,747 417,393 4,166
Depreciation of property on operating leases — 9,741 101,032 1,008
Deferred income taxes (2,756) (16,448) 31,341 313
Minority interest in income 15,287 20,117 27,308 272
Equity in income of affiliates (99,605) (103,417) (118,942) (1,187)
Dividends from affiliates 64,055 54,849 67,764 676
Provision for credit and lease residual losses on finance
subsidiaries—receivables
36,153 44,128 58,011 579
Loss (gain) on derivative instruments, net 10,351 56,836 70,251 701
Gain on transfer of the substitutional portion of
the Employees’ Pension Funds (note 13)
(138,016) — — —
Decrease (increase) in assets:
Trade accounts and notes receivable
(113,259) (49,529) (67,696) (676)
Inventories (109,661) (96,839) (100,622) (1,004)
Other current assets (59,484) (15,206) (2,609) (26)
Other assets (81,796) (5,523) (130,666) (1,304)
Increase (decrease) in liabilities:
Trade accounts and notes payable
21,420 38,186 32,327 323
Accrued expenses 51,653 41,898 (24,768) (247)
Income taxes payable 39,900 (37,282) 20 0
Other current liabilities 6,126 1,103 2,301 23
Other liabilities 80,410 14,274 179,537 1,792
Other, net
604 (6,432) (15,103) (150)
Net cash provided by operating activities
580,640 904,525 1,126,918 11,248
Cash flows from investing activities:
Increase in investments and advances (17,314) (9,874) (6,417) (64)
Decrease in investments and advances 3,711 3,829 1,270 13
Payments for purchases of available-for-sale securities (158,011) (141,902) (158,426) (1,581)
Proceeds from sales of available-for-sale securities 129,496 172,806 179,911 1,796
Payments for purchases of held-to-maturity securities (63,395) (13,614) (39,482) (394)
Proceeds from redemptions of held-to-maturity securities 55,990 41,109 32,557 325
Capital expenditures (460,021) (597,958) (668,228) (6,670)
Proceeds from sales of property, plant and equipment 39,951 20,641 26,868 268
Acquisitions of finance subsidiaries—receivables (3,031,644) (2,857,024) (2,712,775) (27,076)
Collections of finance subsidiaries—receivables 1,870,675 2,138,875 2,312,311 23,079
Proceeds from sales of finance subsidiaries—receivables 930,595 477,927 158,497 1,582
Purchases of operating lease assets — (366,795) (839,261) (8,377)
Proceeds from sales of operating lease assets
— 1,276 26,776 267
Net cash used in investing activities
(699,967) (1,130,704) (1,686,399) (16,832)
Cash flows from financing activities:
Increase (decrease) in short-term debt, net (124,941) 306,063 601,957 6,008
Proceeds from long-term debt 865,677 969,491 1,061,792 10,598
Repayments of long-term debt (568,605) (677,539) (782,749) (7,813)
Cash dividends paid (note 12) (71,061) (140,482) (152,590) (1,523)
Cash dividends paid to minority interests (4,083) (7,434) (9,663) (96)
Payments for purchases of treasury stock, net
(77,064) (26,689) (30,746) (307)
Net cash provided by financing activities
19,923 423,410 688,001 6,867
Effect of exchange rate changes on cash and cash equivalents
43,406 31,527 (23,164) (231)
Net change in cash and cash equivalents (55,998) 228,758 105,356 1,052
Cash and cash equivalents at beginning of year 772,786 716,788 945,546 9,437
Cash and cash equivalents at end of year ¥ 716,788 ¥ 945,546 ¥ 1,050,902 $ 10,489
See accompanying notes to consolidated financial statements.
Consolidated Statements of Cash Flows