Pizza Hut 2006 Annual Report Download - page 50

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55
Consolidated Statements of Cash Flows
YUM! Brands, Inc. and Subsidiaries
Fiscal years ended December 30, 2006,
December 31, 2005 and December 25, 2004
(in millions) 2006 2005 2004
Cash Flows — Operating Activities
Net income $ 824 $ 762 $ 740
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 479 469 448
Closures and impairment expenses 59 62 38
Refranchising (gain) loss (24) (43) (12)
Contributions to defined benefit pension plans (43) (74) (55)
Deferred income taxes (30) (101) 142
Equity income from investments in unconsolidated affiliates (51) (51) (54)
Distributions of income received from unconsolidated affiliates 32 44 55
Excess tax benefits from share-based compensation (62) (87) —
Share-based compensation expense 65 62 3
Other non-cash charges and credits, net 101 78 83
Changes in operating working capital, excluding effects of acquisitions
and dispositions:
Accounts and notes receivable 24 (1) (39)
Inventories (3) (4) (7)
Prepaid expenses and other current assets (33) 78 (5)
Accounts payable and other current liabilities (46) (10) (20)
Income taxes payable 10 54 (131)
Net change in operating working capital (48) 117 (202)
Net Cash Provided by Operating Activities 1,302 1,238 1,186
Cash Flows — Investing Activities
Capital spending (614) (609) (645)
Proceeds from refranchising of restaurants 257 145 140
Acquisition of remaining interest in unconsolidated affiliate, net of cash assumed (178) ——
Acquisition of restaurants from franchisees (7) (2) (38)
Short-term investments 39 12 (36)
Sales of property, plant and equipment 57 81 52
Other, net (30) 28 (14)
Net Cash Used in Investing Activities (476) (345) (541)
Cash Flows — Financing Activities
Proceeds from issuance of long-term debt 300 ——
Repayments of long-term debt (211) (14) (371)
Short-term borrowings by original maturity
More than three months — proceeds 236 ——
More than three months — payments (54) ——
Three months or less, net 4 (34) —
Revolving credit facilities, three months or less, net (23) 160 19
Repurchase shares of common stock (983) (1,056) (569)
Excess tax benefit from share-based compensation 62 87 —
Employee stock option proceeds 142 148 200
Dividends paid on common shares (144) (123) (58)
Other, net (2) ——
Net Cash Used in Financing Activities (673) (832) (779)
Effect of Exchange Rate on Cash and Cash Equivalents 8 14
Net (Decrease) Increase in Cash and Cash Equivalents 161 62 (130)
Net Increase in Cash and Cash Equivalents of Mainland China for
December 2004 — 34 —
Cash and Cash Equivalents — Beginning of Year 158 62 192
Cash and Cash Equivalents — End of Year $ 319 $ 158 $ 62
See accompanying Notes to Consolidated Financial Statements.