Olympus 2010 Annual Report Download - page 40

38 OLYMPUS 2010
Millions of yen
Thousands of
U.S. dollars (Note 1)
2010 2009 2008 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Income (loss) before provision for income taxes ......................................... ¥ 86,204 ¥ (91,301) ¥ 94,612 $ 957,822
Adjustments to reconcile income (loss) before provision for income taxes
to net cash provided by operating activities:
Depreciation and amortization ................................................................. 43,275 44,804 37,522 480,833
Impairment loss on fixed assets (Note 18) ................................................ 1,353 1,815 1,093 15,033
Amortization of goodwill (Note 19) ........................................................... 14,998 101,459 8,077 166,644
Increase in severance and retirement allowance ...................................... 2,376 9,003 893 26,400
Increase in prepaid pension cost.............................................................. (814) (8,853) (8,757) (9,044)
Increase in provision for product warranties ............................................ 970 366 1,504 10,778
Interest income ........................................................................................ (1,035) (2,222) (2,728) (11,500)
Interest expense ...................................................................................... 12,413 16,192 13,905 137,922
Net loss (gain) of investments in affiliated companies carried on the
equity method ......................................................................................... (306) 1,704 2,766 (3,400)
Gain on transfer of business (Notes 23) .................................................... (47,674) — — (529,711)
Net gains due to decrease in equity interest in subsidiaries ..................... — — (1,909) —
Loss on prior period adjustment (Note 20) ................................................ — 15,516 — —
Loss on available-for-sale securities, net ................................................ 4,942 14,564 163 54,911
Gain on sale of investments in subsidiaries and affiliates ........................ (2,429) — (312) (26,989)
Decrease (increase) in accounts receivable.............................................. (10,663) 16,794 (3,959) (118,478)
Decrease (increase) in inventories ........................................................... (2,747) 6,022 (14,316) (30,522)
Increase (decrease) in accounts payable .................................................. 13,196 (14,340) (9,230) 146,622
Increase (decrease) in other payables ...................................................... (1,385) (5,669) 15,932 (15,389)
Increase (decrease) in accrued expense ................................................... (1,253) (12,618) (31) (13,922)
Other ....................................................................................................... (4,140) (2,253) 4,706 (45,999)
Sub-total ............................................................................................... 107,281 90,983 139,931 1,192,011
Interest and dividends received ............................................................... 1,934 3,439 4,114 21,489
Interest payments.................................................................................... (12,465) (16,139) (13,864) (138,500)
Income taxes paid .................................................................................... (20,505) (36,655) (41,175) (227,833)
Net cash provided by operating activities .............................................. 76,245 41,628 89,006 847,167
CASH FLOWS FROM INVESTING ACTIVITIES:
Deposits in time deposits ........................................................................ (4,729) (5,626) (38,956) (52,544)
Withdrawals from time deposits .............................................................. 5,709 38,440 41,775 63,433
Sales of securities (Note 3b) .................................................................... — — 2,357 —
Purchases of property, plant and equipment (Note 3c) ............................. (39,498) (43,829) (47,953) (438,867)
Sales of property, plant and equipment (Note 3d) .................................... — — 2,306 —
Purchase of intangible assets (Note 3c) ................................................... (5,400) (5,617) — (60,000)
Purchases of investment securities (Note 3e) .......................................... (4,965) (5,332) (12,132) (55,167)
Sales of investment securities ................................................................. 3,705 40,538 6,491 41,167
Payments for acquisition of new consolidated subsidiaries (Note 22) ...... (372) (128) (232,234) (4,133)
Net increase (decrease) from sales of investments in subsidiaries
related to changes in scope of consolidation ........................................... 17,536 (123) 197 194,844
Payments for additional acquisition of consolidated subsidiaries (Note 3e) . — — (18,355) —
Payments for acquisition of subsidiaries (Note 3e)................................... (59,895) (40,390) — (665,500)
Proceeds from sales of investments in consolidated subsidiaries ............ — — 608 —
Payments for loans receivable ................................................................. (1,907) (1,531) (9,912) (21,189)
Proceeds from loans receivable ............................................................... 337 3,073 1,544 3,744
Payments for transfer of business ........................................................... (6,851) — — (76,122)
Proceeds from transfer of business (Note 23) .......................................... 74,402 — — 826,689
Other ....................................................................................................... 961 (203) (39) 10,678
Net cash used in investing activities ...................................................... (20,967) (20,728) (304,303) (232,967)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in short-term borrowings .......................................... (4,533) (218,220) 152,797 (50,367)
Proceeds from long-term debt ................................................................. 95,631 259,719 37,097 1,062,567
Repayments of long-term debt ................................................................ (48,870) (33,603) (15,064) (543,000)
Proceeds from issuance of bonds ............................................................ 200 45,166 100 2,222
Redemption of bonds ............................................................................... (20,300) (35,199) (94) (225,556)
Stock issue to minority shareholders ....................................................... — 147 1,917 —
Payments for purchase of treasury stock (Note 3f) ................................... — (10,240) — —
Dividends paid ......................................................................................... (4,050) (10,749) (11,893) (45,000)
Dividends paid to minority shareholders .................................................. (171) (114) (88) (1,900)
Other ....................................................................................................... (552) (658) (371) (6,133)
Net cash provided by (used in) financing activities ................................ 17,355 (3,751) 164,401 192,833
Effect of exchange rate changes on cash and cash equivalents ................. (2,905) (4,435) (4,405) (32,278)
Net increase (decrease) in cash and cash equivalents ............................... 69,728 12,714 (55,301) 774,756
Cash and cash equivalents at beginning of year ......................................... 132,720 119,842 174,802 1,474,666
Net increase in cash and cash equivalents associated with newly
consolidated subsidiaries ......................................................................... 477 — 578 5,300
Net decrease in cash and cash equivalents associated with exclusion
from scope of consolidation ...................................................................... — (6) (237) —
Net increase in cash and cash equivalents resulting from merger with
unconsolidated subsidiaries ..................................................................... 88 170 — 978
Cash and cash equivalents at end of year (Note 21).................................... ¥ 203,013 ¥ 132,720 ¥ 119,842 $ 2,255,700
See accompanying notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Olympus Corporation and Consolidated Subsidiaries
For the years ended March 31, 2010, 2009 and 2008