Royal Caribbean Cruise Lines 2005 Annual Report Download - page 34

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Year Ended December 31,
2005 2004 2003
(in thousands)
Operating Activities
Net income $ 715,956 $ 474,691 $ 280,664
Adjustments:
Depreciation and amortization 402,069 394,136 362,695
Cumulative effect of a change in accounting principle (52,491) ––
Gain on redemption of investment (44,207) ––
Accretion of original issue discount on debt 45,718 52,562 48,874
Changes in operating assets and liabilities:
(Increase) decrease in trade and other receivables, net (19,349) (3,256) 10,011
Decrease (increase) in inventories 2,457 (6,813) (15,978)
(Increase) decrease in prepaid expenses and other assets (5,009) (17,196) 6,670
(Decrease) increase in accounts payable (3,741) (25,987) 19,756
Increase (decrease) in accrued expenses and other liabilities 31,772 53,851 (3,340)
Increase in customer deposits 9,912 145,273 161,640
Other, net 28,273 9,730 (13,189)
Net cash provided by operating activities 1,111,360 1,076,991 857,803
Investing Activities
Purchases of property and equipment (429,898) (630,670) (1,029,530)
Purchases of short-term investments (56,500) (732,165) (216,450)
Proceeds from sale of short-term investments 56,500 732,165 216,450
Proceeds from redemption of investment 348,070 ––
Other, net (7,198) (1,840) (73,114)
Net cash used in investing activities (89,026) (632,510) (1,102,644)
Financing Activities
Repayments of debt (1,564,715) (361,386) (471,100)
Net proceeds from issuance of debt 390,000 225,000 830,536
Dividends (118,764) (104,521) (98,320)
Proceeds from exercise of common stock options 21,996 98,316 45,960
Purchases of treasury stock (249,122) ––
Other, net (4,922) (3,398) 25,267
Net cash (used in) provided by financing activities (1,525,527) (145,989) 332,343
Net (decrease) increase in cash and cash equivalents (503,193) 298,492 87,502
Cash and cash equivalents at beginning of year 628,578 330,086 242,584
Cash and cash equivalents at end of year $ 125,385 $ 628,578 $ 330,086
Supplemental Disclosures
Cash paid during the year for:
Interest, net of amount capitalized $ 236,477 $ 266,037 $ 219,598
The accompanying notes are an integral part of these financial statements.
32 Royal Caribbean Cruises Ltd.
Consolidated Statements
of Cash Flows