Rayovac 2006 Annual Report Download - page 78

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66 SPECTRUM BRANDS | 2006 ANNUAL REPORT
Consolidated Statements of Cash Flows
Years ended September 30, 2006, 2005 and 2004
(in thousands) 2006 2005 2004
Cash fl ows from operating activities:
(Loss) income from continuing operations $(428,452) $ 41,363 $ 56,160
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation 48,880 45,115 34,337
Amortization of intangibles 23,473 13,927 955
Amortization of debt issuance costs 6,872 6,023 4,162
Amortization of unearned restricted stock compensation 15,169 9,509 5,291
Impairment of goodwill and intangibles 432,978 – –
Gain on sale of assets (8,876) – –
Loss on debt extinguishment — 12,033 –
Inventory valuation purchase accounting charges 204 37,533 –
Deferred income taxes (52,581) (12,265) 6,725
Non-cash restructuring and related charges 41,235 10,426 8,461
Changes in assets and liabilities, net of acquisitions:
Accounts receivable 5,734 52,810 978
Inventories (11,682) 47,503 (30,933)
Prepaid expenses and other current assets (2,767) 7,490 (8,361)
Accounts payable and accrued liabilities (72,207) (46,716) 25,541
Other assets and liabilities 46,549 (9,256) (6,875)
Net cash provided by operating activities of continuing operations 44,529 215,495 96,441
Net cash provided (used) by operating activities of discontinued operations – 1,100 (336)
Net cash provided by operating activities 44,529 216,595 96,105
Cash fl ows from investing activities:
Purchases of property, plant and equipment (60,368) (62,750) (26,892)
Proceeds from sale of property, plant and equipment 5,439 177 30
Proceeds from sale of assets held for sale 10,641 – –
Payments for acquisitions, net of cash acquired (18,501) (1,630,155) (41,714)
Net cash used by investing activities of continuing operations (62,789) (1,692,728) (68,576)
Net cash provided (used) by investing activities of discontinued operations 83,430 (1,100) –
Net cash provided (used) by investing activities 20,641 (1,693,828) (68,576)
Cash fl ows from fi nancing activities:
Reduction of debt (956,068) (1,080,951) (391,848)
Proceeds from debt fi nancing 898,520 2,581,378 241,500
Debt issuance costs (5,236) (31,713) (1,350)
Payments on capital lease obligations (4,131) (8,874) (110)
Proceeds from exercise of stock options 365 18,413 21,127
Stock option income tax benefi t 80 10,732 8,766
Payments from offi cers/shareholders – 3,605 –
Net cash (used) provided by fi nancing activities (66,470) 1,492,590 (121,915)
Effect of exchange rate changes on cash and cash equivalents (122) 524 2,750
Net (decrease) increase in cash and cash equivalents (1,422) 15,881 (91,636)
Cash and cash equivalents, beginning of period 29,852 13,971 105,607
Cash and cash equivalents, end of period $ 28,430 $ 29,852 $ 13,971
Supplemental disclosure of cash fl ow information:
Cash paid for interest $164,639 $ 100,770 $ 49,415
Cash paid for income taxes, net 43,231 21,973 28,326
Issuance of Treasury shares for the United acquisition – 439,175 –
Sale of Mexican manufacturing facility:
Reduction in deferred proceeds – 9,440 –
Reduction in assets held for sale – 7,874 –
See accompanying notes to consolidated financial statements.
2006 Form 10-K Annual Report
Spectrum Brands, Inc.