LabCorp 2007 Annual Report Download - page 37

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Laboratory Corporation of America® Holdings 2007 35
Years Ended December 31,
(in millions) 2007 2006 2005
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 476.8 $ 431.6 $ 386.2
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 162.8 155.0 149.8
Stock compensation 35.4 52.7 13.7
Loss on sale of assets 0.2 0.8 0.2
Investment loss – – 3.1
Accreted interest on zero-coupon subordinated notes 11.1 10.9 10.7
Cumulative earnings in excess of distribution from joint venture partnerships (8.6) (1.0) (11.3)
Deferred income taxes 26.5 36.7 18.5
Change in assets and liabilities (net of effects of acquisitions):
Increase in accounts receivable (net) (78.7) (47.9) (15.0)
Decrease (increase) in inventories 4.8 (18.8) 0.1
Increase in prepaid expenses and other (16.3) (16.0) (5.8)
Increase (decrease) in accounts payable 33.9 (17.6) 24.1
Increase (decrease) in accrued expenses and other 61.8 45.9 (0.1)
Net cash provided by operating activities 709.7 632.3 574.2
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (142.6) (115.9) (93.6)
Proceeds from sale of assets 1.4 0.9 1.5
Deferred payments on acquisitions (2.8) (4.0) (7.3)
Purchases of short-term investments (1,777.9) (1,589.7) (987.8)
Proceeds from sale of short-term investments 1,803.4 1,472.0 1,129.3
Acquisition of licensing technology (0.7) (0.6) (5.4)
Acquisition of businesses, net of cash acquired (222.3) (36.0) (335.3)
Net cash used for investing activities (341.5) (273.3) (298.6)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from term loan 500.0 – –
Proceeds from credit facilities 240.0 95.0 385.0
Payments on credit facilities (240.0) (95.0) (385.0)
Proceeds from senior note offering – – 250.0
Bank overdraft (34.9) 34.9 –
Payments on other long-term debt (0.1) (1.2) (0.6)
Payment of debt issuance costs (5.8) – (2.4)
Payments on long-term lease obligations – (1.8) (2.6)
Excess tax benefi ts from stock based compensation 20.7 9.1 –
Purchase of common stock (921.2) (476.5) (583.7)
Net proceeds from issuance of stock to employees 77.6 82.0 62.1
Net cash used for fi nancing activities (363.7) (353.5) (277.2)
Effect of exchange rate changes on cash and cash equivalents 0.4 0.6 (0.6)
Net increase (decrease) in cash and cash equivalents 4.9 6.1 (2.2)
Cash and cash equivalents at beginning of year 51.5 45.4 47.6
Cash and cash equivalents at end of year $ 56.4 $ 51.5 $ 45.4
The accompanying notes are an integral part of these consolidated fi nancial statements.
Consolidated Statements of Cash Flows
Laboratory Corporation of America