Cincinnati Bell 2006 Annual Report Download - page 169

Cincinnati Bell Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions of Dollars)
Year Ended December 31,
2006 2005 2004
Cash flows from operating activities
Net income (loss) .................................................... $ 86.3 $ (64.5) $ 64.2
Adjustments to reconcile net income (loss) to net cash provided by operating
activities
Depreciation ...................................................... 138.6 174.7 178.6
Amortization ...................................................... 4.4 — 9.1
Gain on sale of broadband assets ...................................... (7.6) — (3.7)
Asset impairments and other charges ................................... — 41.7 3.2
Loss on extinguishment of debt ....................................... 0.1 99.8 —
Provision for loss on receivables ...................................... 14.0 14.3 16.0
Noncash interest expense ............................................ 4.9 22.4 35.2
Minority interest income ............................................ (0.5) (11.0) (0.5)
Deferred income tax expense, including valuation allowance change ......... 62.4 52.5 32.8
Other, net ........................................................ (2.1) (0.1) 0.2
Changes in operating assets and liabilities
Increase in receivables .............................................. (15.0) (33.5) (20.7)
(Increase) decrease in prepaid expenses and other current assets ............. (6.2) (2.1) 3.9
Increase (decrease) in accounts payable ................................ 4.1 10.9 (0.8)
Increase (decrease) in accrued and other current liabilities .................. 23.3 (13.4) (10.9)
Increase in accrued pension and postretirement benefits .................... 28.1 32.3 12.4
Increase in other assets and liabilities, net ............................... (0.1) (1.7) (18.3)
Net cash provided by operating activities ................................. 334.7 322.3 300.7
Cash flows from investing activities
Capital expenditures ................................................ (151.3) (143.0) (133.9)
Acquisitions of business and remaining minority interest in CBW ............ (86.7) — —
Wireless license purchase ........................................... (37.1) — —
Proceeds from sale of out-of-territory operating assets ..................... — — 3.3
Proceeds from sale of investment ..................................... 5.7 — —
Proceeds from sale of broadband assets ................................. 4.7 — —
Other, net ........................................................ 4.7 0.3 6.3
Net cash used in investing activities ..................................... (260.0) (142.7) (124.3)
Cash flows from financing activities
Issuance of long-term debt ........................................... — 752.1 —
Repayment of debt ................................................. (13.3) (903.3) (171.8)
Debt issuance costs and consent fees ................................... — (21.9) —
Issuance of common shares — exercise of stock options ................... 1.9 2.5 2.4
Preferred stock dividends ............................................ (10.4) (10.4) (10.4)
Other ............................................................ 0.8 2.2 2.3
Net cash used in financing activities ..................................... (21.0) (178.8) (177.5)
Net increase (decrease) in cash and cash equivalents ........................ 53.7 0.8 (1.1)
Cash and cash equivalents at beginning of year ............................. 25.7 24.9 26.0
Cash and cash equivalents at end of year .................................. $ 79.4 $ 25.7 $ 24.9
The accompanying notes are an integral part of the consolidated financial statements.
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