Olympus 2008 Annual Report Download - page 41

OLYMPUS 2008 39
Thousands of
Millions of yen U.S. dollars (Note 1)
2008 2007 2006 2008
Cash Flows from Operating Activities:
Income before provision for income taxes .................................................. ¥ 94,612 ¥ 73,580 ¥ 43,187 $ 901,067
Adjustments to reconcile income before provision for income taxes
to net cash provided by operating activities:
Depreciation and amortization ................................................................. 37,522 30,404 27,022 357,352
Amortization of consolidated adjustment accounts (Note 3d) .................. — — 5,674 —
Amortization of goodwill (Note 3d) ........................................................... 8,077 7,868 — 76,924
Increase (decrease) in severance and retirement allowance .................... 893 183 (393) 8,505
Decrease (increase) in prepaid pension cost ............................................ (8,757) 673 1,361 (83,400)
Increase (decrease) in provision for product warranties (Note 3e) ............ 1,504 3,481 — 14,324
Interest income ........................................................................................ (2,728) (1,311) (977) (25,981)
Interest expense ...................................................................................... 13,905 12,567 9,997 132,429
Net loss of investment in affiliated companies carried on the equity method
(Note 3g) ................................................................................................. 2,766 — — 26,343
Net gains due to decrease in equity interest in subsidiaries ..................... (1,909) — — (18,181)
Loss (gain) on marketable and investment securities, net ........................ 163 820 (116) 1,552
Proceed from sale of beneficial interest in trust ...................................... — — (1,522) —
Gain on sale of investment securities in subsidiaries and affiliates .......... (312) (163) (2,199) (2,971)
Impairment loss on fixed assets............................................................... 1,093 1,619 1,411 10,410
Decrease (increase) in accounts receivable.............................................. (3,959) (17,432) (9,622) (37,705)
Decrease (increase) in inventories ........................................................... (14,316) 6,821 15,643 (136,343)
Increase (decrease) in accounts payable .................................................. (9,230) 11,528 (15,340) (87,905)
Increase (decrease) in other payable (Note 3f) ......................................... 15,932 — — 151,733
Increase (decrease) in accrued expense ................................................... (31) 15,871 4,092 (295)
Other ....................................................................................................... 4,706 309 (830) 44,818
Sub-total ............................................................................................... 139,931 146,818 77,388 1,332,676
Interest and dividend received ................................................................. 4,114 2,341 1,974 39,181
Interest payments.................................................................................... (13,864) (12,460) (9,242) (132,038)
Income taxes paid .................................................................................... (41,175) (28,299) (21,086) (392,143)
Net cash provided by operating activities .............................................. 89,006 108,400 49,034 847,676
Cash Flows from Investing Activities:
Deposits in time deposits ........................................................................ (38,956) (41,379) (6,244) (371,010)
Withdrawals from time deposits .............................................................. 41,775 6,609 6,588 397,857
Purchases of securities............................................................................ — (8,365) (34,997) —
Sales of securities ................................................................................... 2,357 1,266 35,000 22,448
Purchases of property, plant and equipment ........................................... (47,953) (41,269) (44,892) (456,695)
Sales of property, plant and equipment ................................................... 2,306 644 50 21,962
Purchases of investment securities ......................................................... (12,132) (15,405) (36,896) (115,543)
Sales of investment securities ................................................................. 6,491 4,360 20,947 61,819
Payments for acquisition of new consolidated subsidiaries (Note 20) ...... (232,234) (2,409) (12,029) (2,211,752)
Net increase (decrease) from sales of investment in subsidiaries related
to changes in scope of consolidation ....................................................... 197 (231) 1,431 1,876
Payments for additional acquisition of consolidated subsidiaries ............ (18,355) — (12,297) (174,810)
Sales of the trust beneficiary right ........................................................... — — 1,686 —
Proceeds from sales of investment in consolidated subsidiaries................. 608 — — 5,790
Payments for loans receivable (Note 3h) .................................................. (9,912) — — (94,400)
Proceeds from loans receivable (Note 3h) ................................................ 1,544 — — 14,705
Other ....................................................................................................... (39) (302) (102) (371)
Net cash used in investing activities ...................................................... (304,303) (96,481) (81,755) (2,898,124)
Cash Flows from Financing Activities:
Increase (decrease) in short-term borrowings .......................................... 152,797 (20,025) 14,925 1,455,210
Proceeds from long-term debt ................................................................. 37,097 19,242 71,994 353,305
Repayments of long-term debt ................................................................ (15,064) (10,141) (60,683) (143,467)
Proceeds from issuance of bonds ............................................................ 100 44,384 39,833 952
Redemption of bonds ............................................................................... (94) (25,092) — (895)
Proceed from issuance of common stock ................................................. — — 14,918 —
Stock issue to minority shareholders ....................................................... 1,917 1,099 472 18,257
Dividends paid ......................................................................................... (11,893) (6,895) (4,006) (113,267)
Dividends paid to minority shareholders .................................................. (88) — (21) (838)
Other ....................................................................................................... (371) (380) (232) (3,533)
Net cash provided by financing activities .............................................. 164,401 2,192 77,200 1,565,724
Effect of exchange rate changes on cash and cash equivalents .................. (4,405) 1,298 1,166 (41,952)
Net increase (decrease) in cash and cash equivalents ................................ (55,301) 15,409 45,645 (526,676)
Cash and cash equivalents at beginning of year ......................................... 174,802 159,307 113,625 1,664,780
Net increase in cash and cash equivalents associated
with newly consolidated subsidiaries ........................................................ 578 146 46 5,505
Net decrease in cash and cash equivalents associated with exclusion
from scope of consolidation ...................................................................... (237) (60) (9) (2,257)
Cash and cash equivalents at end of year (Note 19) .................................... ¥ 119,842 ¥ 174,802 ¥ 159,307 $ 1,141,352
See accompanying notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Olympus Corporation and Consolidated Subsidiaries
For the years ended March 31, 2008, 2007 and 2006