Western Union 2011 Annual Report Download - page 97

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THE WESTERN UNION COMPANY
Consolidated Statements of Cash Flows
(in millions)
Year Ended December 31,
2011 2010 2009
Cash flows from operating activities
Net income ............................................................. $ 1,165.4 $ 909.9 $ 848.8
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation ........................................................ 61.0 61.5 55.9
Amortization ........................................................ 131.6 114.4 98.3
Deferred income tax provision/(benefit) .................................. 21.2 28.6 (20.8)
Stock compensation expense ........................................... 31.2 35.9 31.9
Gain on revaluation of equity interests (Note 3) ............................ (49.9) — —
Other non-cash items, net .............................................. (1.4) 2.0 44.1
Increase/(decrease) in cash, excluding the effects of acquisitions, resulting from
changes in:
Other assets ..................................................... (27.7) 28.1 (31.4)
Accounts payable and accrued liabilities .............................. (43.0) 10.5 75.5
Income taxes payable (Note 10) ..................................... (62.3) (159.2) 138.3
Other liabilities .................................................. (51.2) (37.3) (22.5)
Net cash provided by operating activities ..................................... 1,174.9 994.4 1,218.1
Cash flows from investing activities
Capitalization of contract costs ............................................. (96.7) (35.0) (27.3)
Capitalization of purchased and developed software ............................. (13.0) (25.4) (11.9)
Purchases of property and equipment ........................................ (52.8) (53.3) (59.7)
Acquisition of businesses, net of cash acquired ................................. (1,218.6) (4.7) (515.9)
Net proceeds from settlement of foreign currency forward contracts related to
acquisitions ........................................................... 20.8 — —
Proceeds from receivable for securities sold ................................... — 36.9 255.5
Repayments of notes receivable issued to agents ................................ — 16.9 35.2
Net cash used in investing activities .......................................... (1,360.3) (64.6) (324.1)
Cash flows from financing activities
Proceeds from exercise of options ........................................... 100.0 42.1 23.2
Cash dividends paid ...................................................... (194.2) (165.3) (41.2)
Common stock repurchased ................................................ (803.9) (581.4) (400.2)
Net proceeds from/(repayments of) commercial paper ........................... 297.0 — (82.8)
Net proceeds from issuance of borrowings .................................... 696.3 247.0 496.6
Principal payments on borrowings ........................................... (696.3) — (500.0)
Net cash used in financing activities ......................................... (601.1) (457.6) (504.4)
Net change in cash and cash equivalents ...................................... (786.5) 472.2 389.6
Cash and cash equivalents at beginning of year ................................. 2,157.4 1,685.2 1,295.6
Cash and cash equivalents at end of year ...................................... $ 1,370.9 $ 2,157.4 $ 1,685.2
Supplemental cash flow information:
Interest paid ............................................................ $ 191.3 $ 175.5 $ 150.0
Income taxes paid (Note 10) ............................................... $ 144.9 $ 365.4 $ 162.8
Non-cash exchange of 5.400% notes due 2011 for 5.253% notes due 2020 (Note 15) . . . $ — $ 303.7 $ —
See Notes to Consolidated Financial Statements.
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