Polaris 2008 Annual Report Download - page 58

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POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
2008 2007 2006
For the Year Ended
December 31,
Operating Activities:
Net income before cumulative effect of accounting change . . . . . . . . . . . . . . . . . $ 117,395 $ 111,650 $ 106,577
Net loss from discontinued operations . . . . . . . . . . . . . . . . . . . . . . . . . — 948 6,213
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,112 62,093 71,164
Noncash compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,558 19,759 13,402
Noncash income from financial services . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,604) (5,268) (15,907)
Noncash expense (income) from manufacturing affiliates . . . . . . . . . . . . . . . 157 (46) (3,642)
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (966) (10,276) 1,299
Changes in current operating items:
Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15,714) (19,069) 14,534
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,970) 12,191 (28,513)
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,941 (10,627) 3,608
Accrued expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,469) 38,648 (11,284)
Income taxes payable/receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,504) 9,519 (5,487)
Prepaid expenses and others, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,730) 3,644 790
Net cash provided by continuing operations . . . . . . . . . . . . . . . . . . . . . 176,206 213,166 152,754
Net cash flow used for discontinued operations . . . . . . . . . . . . . . . . . . (452) (3,008) (7,131)
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . 175,754 210,158 145,623
Investing Activities:
Purchase of property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (76,575) (63,747) (52,636)
Investments in finance affiliate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,209) (11,527) (10,486)
Distributions from finance affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,049 18,623 30,364
Proceeds from sale of shares of manufacturing affiliate . . . . . . . . . . . . . . . . . . . . — 77,086 —
Distributions from manufacturing affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 1,706
Net cash used for investment activities . . . . . . . . . . . . . . . . . . . . . . . . (69,735) 20,435 (31,052)
Financing Activities:
Borrowings under credit agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 786,000 368,000 1,131,000
Repayments under credit agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (786,000) (418,000) (899,000)
Repurchase and retirement of common shares . . . . . . . . . . . . . . . . . . . . . . . . . . (107,167) (103,100) (307,621)
Cash dividends to shareholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (49,602) (47,739) (50,234)
Tax effect of proceeds from stock based compensation exercises . . . . . . . . . . . . . 1,731 2,232 2,003
Proceeds from stock issuances under employee plans . . . . . . . . . . . . . . . . . . . . . 12,865 11,729 9,172
Net cash used for financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (142,173) (186,878) (114,680)
Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . (36,154) 43,715 (109)
Cash and cash equivalents at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . 63,281 19,566 19,675
Cash and cash equivalents at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27,127 $ 63,281 $ 19,566
Supplemental Cash Flow Information
Interest paid on debt borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,614 $ 16,034 $ 8,769
Income taxes paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 70,205 $ 54,189 $ 52,466
All periods presented reflect the classification of the marine division’s financial results as discontinued
operations.
The accompanying footnotes are an integral part of these consolidated statements.
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