Polaris 2010 Annual Report Download - page 59

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POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
2010 2009 2008
For the Year Ended
December 31,
Operating Activities:
Net income ............................................. $147,138 $ 101,017 $ 117,395
Adjustments to reconcile net income to net cash provided by operating
activities:
(Gain) loss on securities available for sale ................... (825) 8,952 —
Depreciation and amortization ............................ 66,519 64,593 66,112
Noncash compensation ................................. 18,052 10,226 18,558
Noncash income from financial services .................... (4,574) (4,021) (4,604)
Noncash expense from manufacturing affiliates ............... 1,376 382 157
Deferred income taxes.................................. (16,888) 13,573 (966)
Tax effect of stock based compensation exercises .............. (10,610) 410 (1,731)
Changes in current operating items:
Trade receivables.................................... 1,111 8,192 (15,714)
Inventories . ....................................... (56,612) 42,997 (3,970)
Accounts payable ................................... 37,580 (40,329) 25,941
Accrued expenses ................................... 107,663 (24,759) (7,469)
Income taxes payable ................................ 7,033 7,325 (7,773)
Prepaid expenses and others, net ........................ 956 4,643 (9,730)
Net cash provided by continuing operations .............. 297,919 193,201 176,206
Net cash flow (used for) discontinued operations .......... (300) — (452)
Net cash provided by operating activities ................ 297,619 193,201 175,754
Investing Activities:
Purchase of property and equipment ........................... (55,718) (43,932) (76,575)
Investments in finance affiliate ............................... (9,173) (3,007) (9,209)
Distributions from finance affiliates ........................... 17,910 17,261 16,049
Proceeds from sale of investments............................. 9,601 — —
Acquisition of businesses, net of cash acquired ................... (4,738) — —
Net cash used for investment activities .................. (42,118) (29,678) (69,735)
Financing Activities:
Borrowings under credit agreement ............................ — 364,000 786,000
Repayments under credit agreement ........................... — (364,000) (786,000)
Repurchase and retirement of common shares .................... (27,486) (4,556) (107,167)
Cash dividends to shareholders ............................... (53,043) (50,177) (49,602)
Tax effect of proceeds from stock based compensation exercises ...... 10,610 (410) 1,731
Proceeds from stock issuances under employee plans .............. 68,105 4,733 12,865
Net cash used for financing activities ........................ (1,814) (50,410) (142,173)
Net increase (decrease) in cash and cash equivalents ................. 253,687 113,113 (36,154)
Cash and cash equivalents at beginning of period ................... 140,240 27,127 63,281
Cash and cash equivalents at end of period ........................ $393,927 $ 140,240 $ 27,127
Supplemental Cash Flow Information:
Interest paid on debt borrowings .............................. $ 2,813 $ 3,966 $ 9,614
Income taxes paid . ....................................... $ 81,142 $ 29,039 $ 70,205
The accompanying footnotes are an integral part of these consolidated statements.
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