LabCorp 2008 Annual Report Download - page 37

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Laboratory Corporation of America
Laboratory Corporation of America® Holdings 2008 35
Consolidated Statements of Cash Flows
Years Ended December 31,
(In Millions) 2008 2007 2006
Cash Flows From Operating Activities:
Net earnings $ 464.5 $ 476.8 $ 431.6
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 179.7 162.8 155.0
Stock compensation 36.2 35.4 52.7
Loss on sale of assets 1.1 0.2 0.8
Accreted interest on zero-coupon subordinated notes 11.3 11.1 10.9
Cumulative earnings in excess of distribution from joint venture partnerships (0.6) (8.6) (1.0)
Deferred income taxes 69.6 26.5 36.7
Minority interest 13.3 – –
Change in assets and liabilities (net of effects of acquisitions):
(Increase) decrease in accounts receivable (net) 28.0 (78.7) (47.9)
(Increase) decrease in inventories (8.6) 4.8 (18.8)
Increase in prepaid expenses and other (15.1) (16.3) (16.0)
Increase (decrease) in accounts payable 15.9 33.9 (17.6)
Increase (decrease) in accrued expenses and other (14.4) 61.8 45.9
Net cash provided by operating activities 780.9 709.7 632.3
Cash Flows From Investing Activities:
Capital expenditures (156.7) (142.6) (115.9)
Proceeds from sale of assets 0.5 1.4 0.9
Deferred payments on acquisitions (4.1) (2.8) (4.0)
Purchases of short-term investments (72.8) (1,777.9) (1,589.7)
Proceeds from sale of short-term investments 182.7 1,803.4 1,472.0
Acquisition of licensing technology (0.8) (0.7) (0.6)
Acquisition of businesses, net of cash acquired (344.8) (222.3) (36.0)
Net cash used for investing activities (396.0) (341.5) (273.3)
Cash Flows From Financing Activities:
Proceeds from term loan – 500.0 –
Proceeds from credit facilities 145.2 240.0 95.0
Payments on credit facilities (74.4) (240.0) (95.0)
Payments on term loan (25.0) – –
Payments on zero-coupon subordinated notes (2.1) – –
Bank overdraft 5.0 (34.9) 34.9
Payments on other long-term debt (0.1) (0.1) (1.2)
Payment of debt issuance costs (0.1) (5.8) –
Payments on long-term lease obligations – – (1.8)
Minority interest distributions (14.0) – –
Excess tax benefits from stock based compensation 16.2 20.7 9.1
Purchase of common stock (333.6) (921.2) (476.5)
Net proceeds from issuance of stock to employees 64.4 77.6 82.0
Net cash used for financing activities (218.5) (363.7) (353.5)
Effect of exchange rate changes on cash and cash equivalents (3.1) 0.4 0.6
Net increase in cash and cash equivalents 163.3 4.9 6.1
Cash and cash equivalents at beginning of year 56.4 51.5 45.4
Cash and cash equivalents at end of year $ 219.7 $ 56.4 $ 51.5
The accompanying notes are an integral part of these consolidated financial statements.