Polaris 2011 Annual Report Download - page 67

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POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For the Year Ended
December 31,
2011 2010 2009
Operating Activities:
Net income ..................................................... $227,575 $147,138 $ 101,017
Adjustments to reconcile net income to net cash provided by operating
activities:
(Gain) loss on securities available for sale ..................... — (825) 8,952
Depreciation and amortization .................................. 66,390 66,519 64,593
Noncash compensation ........................................ 20,548 18,052 10,226
Noncash income from financial services .......................... (4,444) (4,574) (4,021)
Noncash expense from other affiliates ............................ 133 1,376 382
Deferred income taxes ......................................... (16,946) (16,888) 13,573
Tax effect of share-based compensation exercises ................... (23,120) (10,610) 410
Changes in current operating items:
Trade receivables ........................................ (23,115) 1,111 8,192
Inventories .............................................. (49,973) (56,612) 42,997
Accounts payable ........................................ 27,232 37,580 (40,329)
Accrued expenses ........................................ 80,668 107,363 (24,759)
Income taxes payable/receivable ............................. (1,343) 7,033 7,325
Prepaid expenses and others, net ............................. (1,075) 956 4,643
Net cash provided by operating activities .................. 302,530 297,619 193,201
Investing Activities:
Purchase of property and equipment .............................. (84,484) (55,718) (43,932)
Investments in finance affiliate .................................. (12,588) (9,173) (3,007)
Distributions from finance affiliate ............................... 11,950 17,910 17,261
Investment in other affiliates .................................... (5,000) — —
Proceeds from sale of investments ............................... 876 9,061 —
Acquisition of businesses, net of cash acquired ..................... (51,899) (4,738) —
Net cash used for investment activities .................... (141,145) (42,118) (29,678)
Financing Activities:
Borrowings under credit agreement / senior notes ................... 100,000 — 364,000
Repayments under credit agreement .............................. (202,333) — (364,000)
Repurchase and retirement of common shares ...................... (132,372) (27,486) (4,556)
Cash dividends to shareholders .................................. (61,585) (53,043) (50,177)
Tax effect of proceeds from share-based compensation exercises ....... 23,120 10,610 (410)
Proceeds from stock issuances under employee plans ................ 45,654 68,105 4,733
Net cash used for financing activities ......................... (227,516) (1,814) (50,410)
Impact of currency exchange rates on cash balances ..................... (2,460) — —
Net increase (decrease) in cash and cash equivalents ..................... (68,591) 253,687 113,113
Cash and cash equivalents at beginning of period ....................... 393,927 140,240 27,127
Cash and cash equivalents at end of period ............................ $325,336 $393,927 $ 140,240
Supplemental Cash Flow Information:
Interest paid on debt borrowings ................................. $ 3,350 $ 2,813 $ 3,966
Income taxes paid ............................................ $132,088 $ 81,142 $ 29,039
The accompanying footnotes are an integral part of these consolidated statements.
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