Nike 2006 Annual Report Download - page 49

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NIKE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended May 31,
2006 2005 2004
(In millions)
Cash provided (used) by operations:
Net income ..................................................... $1,392.0 $ 1,211.6 $ 945.6
Income charges not affecting cash:
Depreciation ................................................ 282.0 257.2 255.2
Deferred income taxes ........................................ (26.0) 21.3 19.0
Amortization and other ........................................ 8.9 30.5 58.3
Income tax benefit from exercise of stock options ....................... 54.2 63.1 47.2
Changes in certain working capital components:
(Increase) decrease in accounts receivable ......................... (85.1) (93.5) 97.1
Increase in inventories ........................................ (200.3) (103.3) (55.9)
(Increase) decrease in prepaids and other current assets .............. (37.2) 71.4 (103.6)
Increase in accounts payable, accrued liabilities and income taxes
payable .................................................. 279.4 112.4 255.6
Cash provided by operations ............................... 1,667.9 1,570.7 1,518.5
Cash provided (used) by investing activities:
Purchases of short-term investments ................................. (2,619.7) (1,527.2) (400.8)
Maturities of short-term investments ................................. 1,709.8 1,491.9 —
Additions to property, plant and equipment ............................ (333.7) (257.1) (214.8)
Disposals of property, plant and equipment ............................ 1.6 7.2 11.6
Increase in other assets ............................................ (30.3) (39.1) (53.4)
(Decrease) increase in other liabilities ................................ (4.3) 11.1 (4.1)
Acquisition of subsidiary, net of cash acquired ......................... — (47.2) (289.1)
Cash used by investing activities ............................ (1,276.6) (360.4) (950.6)
Cash provided (used) by financing activities:
Proceeds from long-term debt issuance ............................... — — 153.8
Reductions in long-term debt including current portion .................. (6.0) (9.2) (206.6)
Decrease in notes payable .......................................... (18.2) (81.7) (0.3)
Proceeds from exercise of stock options and other stock issuances .......... 225.3 226.8 253.6
Repurchase of stock .............................................. (761.1) (556.2) (419.8)
Dividends — common and preferred ................................. (290.9) (236.7) (179.2)
Cash used by financing activities ............................ (850.9) (657.0) (398.5)
Effect of exchange rate changes ..................................... 25.7 6.8 24.6
Net (decrease) increase in cash and equivalents ................. (433.9) 560.1 194.0
Cash and equivalents, beginning of year .............................. 1,388.1 828.0 634.0
Cash and equivalents, end of year ................................... $ 954.2 $ 1,388.1 $ 828.0
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest, net of capitalized interest ............................... $ 54.2 $ 33.9 $ 37.8
Income taxes ................................................ 752.6 585.3 418.6
Dividends declared and not paid .................................... 79.4 65.3 52.6
The accompanying notes to consolidated financial statements are an integral part of this statement.
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