Memorex 2009 Annual Report Download - page 35

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Liquidity and Capital Resources
Cash Flows provided by Operating Activities:
2009 2008 2007
Years Ended December 31,
(In millions)
Net (loss) income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(42.2) $(33.3) $(50.4)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.7 25.9 28.6
Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.3 23.4 18.3
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.0) 0.2 (10.7)
Goodwill impairment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 32.4 94.1
Asset impairments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7 5.0 8.4
Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.5 9.5 10.2
Pension settlement / curtailment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.7 5.7 2.4
Note receivable reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0 — —
Litigation settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49.0 — —
Other............................................................ 6.2 7.2 3.5
Litigation settlement payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (20.0) — —
Changes in operating assets and liabilities, net of effects from acquisitions. . . . . . . . . . . . . . 8.6 8.7 (16.9)
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 67.5 $ 84.7 $ 87.5
Cash flows from operating activities can fluctuate significantly from period to period as many items can significantly
impact cash flows. In 2009, 2008 and 2007 we contributed $10.3 million, $7.6 million and $5.6 million to our pensions
worldwide, respectively. Operating cash outflows included restructuring payments of $22.3 million, $32.0 million and
$13.1 million in 2009, 2008 and 2007, respectively, and the litigation settlement payment of $20.0 million in 2009.
Cash Flows provided by (used in) Investing Activities:
2009 2008 2007
Years Ended December 31,
(In millions)
Capital expenditures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(11.0) $(13.6) $(14.5)
Acquisitions, net of cash acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (15.3) (68.3)
Acquisition of minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (8.0) —
Proceeds from sale of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.0 0.8 —
Other investing activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 0.3
Net cash provided by (used in) investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.0 $(36.1) $(82.5)
Proceeds from the sale of assets in 2009 included the sale of our Anaheim, California real estate which netted
$12.2 million of cash during the fourth quarter.
In 2008, acquisition related activities included payment for the acquisition of the minority interest in Imation
Corporation Japan of $8.0 million, payment for the acquisition of XtremeMac of $7.3 million, payment for the TDK working
capital settlement of $6.5 million and payment for the Memorex minimum earn-out of $2.5 million. In 2007 acquisition
related activities included payments of $41.1 million for the TDK Recording Media acquisition and payments of $32.7 million
for the Memcorp acquisition partially offset by Memorex net cash proceeds of $5.5 million. See Note 3 to the Consolidated
Financial Statements for further information.
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