Page 642 - Accounting Principles (A Business Perspective)

16. Analysis using the statement of cash flows

(USD millions) 2010 2009 2008
Operating activities
Net income $762.0 $ 206.4 $ 696.2
Adjustments to reconcile net
income to net cash provided by
operations:
Restructured operations, net (126.7) 509.9 (46.9)
Depreciation and 379.6 360.4 282.2
amortization
Deferred income taxes and (27.6) (75.5) 77.6
other, net
Cash effects of changes in:
Receivables (18.5) (52.9) (60.1)
Inventories (1.4) (31.3) (53.4)
Other current assets -0- (50.9) (9.4)
Payables and accruals 133.6 106.2 109.1
Net cash provided by $ 1,101.0 $ 972.3 $ 995.3
operations
Investing activities
Capital expenditures $ (550.8) $ (518.2) $ (481.0)
Payment for acquisitions, net (71.2) (1,560.5) (175.7)
of cash acquired
Sale of marketable securities 31.6 7.4 70.1
and other investments
Other, net (14.4) (20.6) 37.3
Net cash used for investing $ (604.8) $ (2,091.9) $ (549.3)
activities
Financing activities
Principal payments on debt $ (1,397.5) $ (20.5) $ (106.0)
Proceeds from issuance of 1,292.9 1,464.0 379.7
debt, net
Proceeds from outside 10.3 36.6 18.2
investors
Dividends paid (355.5) (331.8) (296.3)
Purchase of common stock (32.9) (10.8) (429.5)
Proceeds from exercise of 36.8 33.9 22.2
stock options and other, net
Net cash (used for) provided $ (445.9) $ 1,171.4 $ (411.7)
by financing activities
Effect of exchange rate $ (2.8) $ (5.2) $ (3.3)
changes on cash and cash
equivalents
Net increase in cash and cash $ 47.5 $ 46.6 $ 31.0
equivalents
Cash and cash equivalents at 250.5 203.9 172.9
beginning of year
Cash and cash equivalents at $ 298.0 $ 250.5 $ 203.9
end of year
Supplemental cash flow
information
Income taxes paid $ 304.4 $ 351.0 $ 313.3
Interest paid 274.9 274.3 116.3
Non-cash consideration in -0- 58.7 9.6
payment for acquisitions
Principal payments on ESOP (6.0) (5.3) (4.8)
debt, guaranteed by the
Company
Exhibit 131: Consolidated statements of cash flows for Synotech, Inc. - Indirect method
Dividend payments were USD 355.5 in 2010, up from USD 331.8 in 2009 and USD 296.3 in 2008.
Internally generated cash flows appear to be adequate to support currently planned business operations,
acquisitions and capital expenditures. Significant acquisitions would require external financing.
The Company is a party to various superfund and other environmental matters and is contingently liable with
respect to lawsuits, taxes and other matters arising out of the normal course of business. Management proactively
reviews and manages its exposure to, and the impact of, environmental matters. While it is possible that the

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