LabCorp 2006 Annual Report Download - page 35

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Laboratory Corporation of America® Holdings 2006 33
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CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
(in millions, except per share data) 2006 2005 2004
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 431.6 $ 386.2 $ 363.0
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 155.0 149.8 138.8
Stock compensation 52.7 13.7 15.5
Loss on sale of assets 0.8 0.2 1.0
Investment loss – 3.1 –
Accreted interest on zero-coupon subordinated notes 10.9 10.7 10.5
Cumulative earnings in excess of distribution from joint venture partnerships (1.0) (11.3) (3.5)
Deferred income taxes 36.7 18.5 38.9
Change in assets and liabilities (net of effects of acquisitions):
(Increase) in accounts receivable(net) (47.9) (15.0) (8.9)
(Increase) decrease in inventories (18.8) 0.1 (13.7)
(Increase) decrease in prepaid expenses and other (16.0) (5.8) 7.0
(Decrease) increase in accounts payable (17.6) 24.1 12.3
Increase (decrease) in accrued expenses and other 45.9 (0.1) (22.8)
Net cash provided by operating activities 632.3 574.2 538.1
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (115.9) (93.6) (95.0)
Proceeds from sale of assets 0.9 1.5 1.8
Deferred payments on acquisitions (4.0) (7.3) (6.7)
Purchases of short-term investments (1,589.7) (987.8) (1,445.4)
Proceeds from sale of short-term investments 1,472.0 1,129.3 1,361.3
Acquisition of licensing technology (0.6) (5.4) (7.9)
Acquisition of businesses, net of cash acquired (36.0) (335.3) (32.1)
Net cash used for investing activities (273.3) (298.6) (224.0)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from credit facilities 95.0 385.0 –
Payments on credit facilities (95.0) (385.0) –
Proceeds from senior note offering – 250.0 –
Bank overdraft 34.9 – –
Payments on other long-term debt (1.2) (0.6) (0.4)
Payment of debt issuance costs – (2.4) –
Payments on long-term lease obligations (1.8) (2.6) (1.5)
Excess tax benefits from stock based compensation 9.1 – –
Purchase of common stock (476.5) (583.7) (368.1)
Net proceeds from issuance of stock to employees 82.0 62.1 56.3
Net cash provided by (used for) financing activities (353.5) (277.2) (313.7)
Effect of exchange rate changes on cash and cash equivalents 0.6 (0.6) (0.7)
Net increase (decrease) in cash and cash equivalents 6.1 (2.2) (0.3)
Cash and cash equivalents at beginning of year 45.4 47.6 47.9
Cash and cash equivalents at end of year $ 51.5 $ 45.4 $ 47.6
The accompanying notes are an integral part of these consolidated financial statements.