Estee Lauder 2005 Annual Report Download - page 59

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THE EST{E LAUDER COMPANIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEAR ENDED JUNE 30 2005 2004 2003
(In millions)
Cash Flows from Operating Activities
Net earnings $ 406.1 $ 342.1 $ 319.8
Adjustments to reconcile net earnings to net cash flows
provided by operating activities from continuing operations:
Depreciation and amortization 196.7 191.7 174.8
Deferred income taxes 104.9 18.3 36.5
Minority interest 9.3 8.9 6.7
Non-cash stock compensation (1.2) 7.9 1.5
Loss on disposal of fixed assets 9.8 5.6 5.5
Discontinued operations —33.3 —
Other non-cash items 1.1 0.8 0.9
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable, net (106.6) (18.4) 38.6
Increase in inventory and promotional merchandise, net (105.1) (45.7) (15.7)
Decrease (increase) in other assets 6.0 16.2 (15.3)
Increase (decrease) in accounts payable (23.9) 29.8 (8.4)
Increase in accrued income taxes 21.0 17.3 5.4
Increase (decrease) in other accrued liabilities (47.5) 75.5 52.7
Increase (decrease) in other noncurrent liabilities 8.6 (7.9) (44.4)
Net cash flows provided by operating activities of continuing operations 479.2 675.4 558.6
Cash Flows from Investing Activities
Capital expenditures (229.6) (212.1) (168.6)
Acquisition of businesses, net of acquired cash (7.1) (4.4) (50.4)
Proceeds from divestitures —3.0 —
Proceeds from disposition of long-term investments —— 21.0
Purchases of long-term investments (0.3) (0.1) —
Net cash flows used for investing activities of continuing operations (237.0) (213.6) (198.0)
Cash Flows from Financing Activities
Increase (decrease) in short-term debt, net 158.6 (2.0) 2.9
Proceeds from issuance of long-term debt, net —195.5 —
Proceeds from the net settlement of treasury lock agreements —15.0 —
Repayments and redemptions of long-term debt (2.5) (293.7) (135.8)
Net proceeds from employee stock transactions 80.6 61.4 16.7
Payments to acquire treasury stock (438.6) (115.9) (352.5)
Dividends paid to stockholders (90.1) (68.5) (81.7)
Distributions made to minority holders of consolidated subsidiaries (8.4) (7.8) (4.6)
Net cash flows used for financing activities of continuing operations (300.4) (216.0) (555.0)
Effect of Exchange Rate Changes on Cash and Cash Equivalents 1.0 4.2 11.6
Cash flows used for discontinued operations (1.1) (2.5) —
Net Increase (Decrease) in Cash and Cash Equivalents (58.3) 247.5 (182.8)
Cash and Cash Equivalents at Beginning of Year 611.6 364.1 546.9
Cash and Cash Equivalents at End of Year $ 553.3 $ 611.6 $ 364.1
Supplemental disclosures of cash flow information (see Note 16)
Cash paid during the year for:
Interest $ 23.1 $ 35.9 $ 17.7
Income Taxes $ 164.4 $ 193.1 $ 134.7
See notes to consolidated financial statements.
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