Western Union 2006 Annual Report Download - page 67

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65
|| Consolidated Statements of Cash Flows
Year Ended December 31,
(in millions) 2006 2005 2004
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 914.0 $ 927.4 $ 751.6
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 34.8 32.0 34.0
Amortization 68.7 47.5 45.2
Deferred income tax provision 12.9 24.9 47.6
Realized (gain)/loss on derivative instruments (4.1) 0.5 23.2
Other non-cash items, net 47.6 25.8 13.9
Increase/(decrease) in cash, excluding the effects of
acquisitions and dispositions, resulting from changes in:
Other assets (60.7) (8.8) (13.8)
Accounts payable and accrued liabilities 123.2 (17.9) (6.3)
Other liabilities (27.5) (28.6) 34.8
Net cash provided by operating activities 1,108.9 1,002.8 930.2
CASH FLOWS FROM INVESTING ACTIVITIES
Capitalization of contract costs (124.1) (22.5) (7.3)
Capitalization of software development costs (14.4) (7.7) (15.7)
Purchases of property and equipment (63.8) (34.8) (26.5)
Notes receivable issued to agents (140.0) (8.4) —
Repayments of notes receivable issued to agents 20.0 — —
Acquisition of businesses, net of cash acquired
and contingent purchase consideration paid (66.5) (349.1) (28.7)
Cash received/(paid) on maturity of foreign currency forwards 4.1 (0.5) (23.2)
Purchase of equity method investments — (5.4) (42.0)
Net cash used in investing activities (384.7) (428.4) (143.4)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from/(to) affiliates of First Data 160.2 (153.2) 250.0
Capital contributed by First Data in connection with acquisitions — 369.2 28.7
Notes payable issued to First Data — 400.1 255.0
Repayments of notes payable to First Data (154.5) (246.5) (255.0)
Additions to notes receivable from First Data (7.5) (504.7) (270.7)
Proceeds from repayments of notes receivable from First Data 776.2 18.4 —
Dividends to First Data (2,953.9) (417.2) (659.8)
Proceeds from issuance of borrowings, net of debt issue costs 4,386.0 — —
Principal payments on borrowings (2,400.0) — —
Net proceeds from issuance of commercial paper 324.6 — —
Proceeds from net borrowings under credit facilities 3.0 — —
Proceeds from exercise of options 80.8 — —
Cash dividends to public stockholders (7.7) — —
Purchase of treasury shares (19.9) — —
Net cash provided by/(used in) financing activities 187.3 (533.9) (651.8)
Net change in cash and cash equivalents 911.5 40.5 135.0
Cash and cash equivalents at beginning of period 510.2 469.7 334.7
Cash and cash equivalents at end of period $ 1,421.7 $ 510.2 $ 469.7
SUPPLEMENTAL CASH FLOW INFORMATION
Notes issued in conjunction with dividend to First Data,
net of debt issue costs and discount $995.1 $— $—
Net liabilities transferred from First Data in connection
with the September 29, 2006 spin-off 148.2 — —
Interest paid 26.4 3.5 5.5
Income taxes paid (primarily to First Data,
prior to the September 29, 2006 spin-off) 271.6 391.8 299.4
See Notes to Consolidated Financial Statements.
Consolidated Financial Statements