McDonalds 2008 Annual Report Download - page 44

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CONSOLIDATED STATEMENT OF CASH FLOWS
In millions Years ended December 31, 2008 2007 2006
Operating activities
Net income $ 4,313.2 $ 2,395.1 $ 3,544.2
Adjustments to reconcile to cash provided by operations
Charges and credits:
Depreciation and amortization 1,207.8 1,214.1 1,249.9
Deferred income taxes 101.5 (39.1) 33.4
Income taxes audit benefit (316.4)
Impairment and other charges, net 6.0 1,670.3 134.2
Gain on sale of investment (160.1)
Gains on dispositions of discontinued operations, net of tax (68.6) (653.0)
Share-based compensation 112.5 142.4 122.5
Other 90.5 (85.3) 73.5
Changes in working capital items:
Accounts receivable 16.1 (100.2) (90.8)
Inventories, prepaid expenses and other current assets (11.0) (29.6) (1.6)
Accounts payable (40.1) (36.7) 82.8
Income taxes 195.7 71.8 (350.3)
Other accrued liabilities 85.1 58.5 196.7
Cash provided by operations 5,917.2 4,876.3 4,341.5
Investing activities
Property and equipment expenditures (2,135.7) (1,946.6) (1,741.9)
Purchases of restaurant businesses (147.0) (228.8) (238.6)
Sales of restaurant businesses and property 478.8 364.7 315.7
Latam transaction, net 647.5
Proceeds on sale of investment 229.4
Proceeds from disposals of discontinued operations, net 194.1 281.0
Other (50.2) (181.0) 109.7
Cash used for investing activities (1,624.7) (1,150.1) (1,274.1)
Financing activities
Net short-term borrowings 266.7 101.3 34.5
Long-term financing issuances 3,477.5 2,116.8 1.9
Long-term financing repayments (2,698.5) (1,645.5) (2,301.1)
Treasury stock purchases (3,919.3) (3,943.0) (2,959.4)
Common stock dividends (1,823.4) (1,765.6) (1,216.5)
Proceeds from stock option exercises 548.2 1,137.6 975.7
Excess tax benefit on share-based compensation 124.1 203.8 87.1
Other (89.8) (201.7) (82.1)
Cash used for financing activities (4,114.5) (3,996.3) (5,459.9)
Effect of exchange rates on cash and equivalents (95.9) 123.3 267.6
Cash and equivalents increase (decrease) 82.1 (146.8) (2,124.9)
Cash and equivalents at beginning of year 1,981.3 2,128.1 4,253.0
Cash and equivalents at end of year $ 2,063.4 $ 1,981.3 $ 2,128.1
Supplemental cash flow disclosures
Interest paid $ 507.8 $ 392.7 $ 430.3
Income taxes paid 1,294.7 1,436.2 1,528.5
See Notes to consolidated financial statements.
42 McDonald’s Corporation Annual Report 2008