McDonalds 2007 Annual Report Download - page 48

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CONSOLIDATED STATEMENT OF CASH FLOWS
IN MILLIONS
Years ended December 31, 2007 2006 2005
Operating activities
Net income $ 2,395.1 $ 3,544.2 $ 2,602.2
Adjustments to reconcile to cash provided by operations
Charges and credits:
Depreciation and amortization 1,214.1 1,249.9 1,249.5
Deferred income taxes (39.1) 33.4 (31.6)
Income taxes audit benefi t (316.4) (178.8)
Impairment and other charges (credits), net 1,670.3 134.2 (28.4)
Gains on dispositions of discontinued operations, net of tax (68.6) (653.0)
Share-based compensation 142.4 122.5 152.0
Other (85.3) 73.5 159.6
Changes in working capital items:
Accounts receivable (100.2) (90.8) (56.5)
Inventories, prepaid expenses and other current assets (29.6) (1.6) (29.4)
Accounts payable (36.7) 82.8 35.8
Income taxes 71.8 (350.3) 442.9
Other accrued liabilities 58.5 196.7 19.5
Cash provided by operations 4,876.3 4,341.5 4,336.8
Investing activities
Property and equipment expenditures (1,946.6) (1,741.9) (1,606.8)
Purchases of restaurant businesses (228.8) (238.6) (343.5)
Sales of restaurant businesses and property 364.7 315.7 259.1
Latam transaction, net 647.5
Proceeds from disposals of discontinued operations, net 194.1 281.0
Other (181.0) 109.7 (126.6)
Cash used for investing activities (1,150.1) (1,274.1)
(1,817.8)
Financing activities
Net short-term borrowings 101.3 34.5 22.7
Long-term fi nancing issuances 2,116.8 1.9 3,107.9
Long-term fi nancing repayments
(1,645.5)
(2,301.1) (1,518.3)
Treasury stock purchases (3,943.0) (2,959.4) (1,202.0)
Common stock dividends (1,765.6) (1,216.5) (842.0)
Proceeds from stock option exercises 1,137.6 975.7 768.1
Excess tax benefi t on share-based compensation 203.8 87.1 70.1
Other (201.7) (82.1) 35.3
Cash provided by (used for) fi nancing activities (3,996.3) (5,459.9) 441.8
Effect of exchange rates on cash and cash equivalents 123.3 267.6 (80.2)
Cash and equivalents increase/(decrease) (146.8) (2,124.9) 2,880.6
Cash and equivalents at beginning of year 2,128.1 4,253.0 1,372.4
Cash and equivalents at end of year $ 1,981.3 $ 2,128.1 $ 4,253.0
Supplemental cash fl ow disclosures
Interest paid $ 392.7 $ 430.3 $ 390.3
Income taxes paid 1,436.2 1,528.5 795.1
See Notes to consolidated fi nancial statements.
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