Annual Report 2010

Adecco Group –
Consolidated statements of cash flows
in millions, except share and per share information

For the fiscal years ended December 31 (in EUR)

2010

2009

2008

 

 

 

 

Cash flows from operating activities

 

 

 

Net income

424

8

499

 

 

 

 

Adjustments to reconcile net income to cash flows from operating activities:

 

 

 

• Depreciation and amortisation

142

123

128

• Impairment of goodwill and intangible assets

 

192

116

• Bad debt expense

12

16

35

• Stock-based compensation

5

1

 

• Deferred tax provision/(benefit)

5

(76)

33

• Tax impact of treasury shares valuation in Adecco S.A.

 

(22)

22

• Other, net

25

19

19

 

 

 

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

• Trade accounts receivable

(667)

577

692

• Accounts payable and accrued expenses

460

(393)

(470)

• Other assets and liabilities

49

32

(20)

Cash flows from operating activities

455

477

1,054

 

 

 

 

Cash flows from/(used in) investing activities

 

 

 

Capital expenditures

(105)

(92)

(106)

Proceeds from sale of property and equipment

1

1

1

Acquisition of MPS, net of cash acquired

(831)

 

 

Acquisition of Spring, net of cash acquired

 

(94)

 

Acquisition of DNC, net of cash acquired

 

 

(56)

Acquisition of Datavance, net of cash acquired

 

 

(41)

Acquisition of DIS, net of cash acquired

 

 

(16)

Purchase of available-for-sale securities

 

 

(36)

Proceeds from sale of available-for-sale securities

 

 

41

Cash settlements on derivative instruments

(51)

(35)

50

Other acquisition and investing activities

(34)

(58)

(47)

Cash flows from/(used in) investing activities

(1,020)

(278)

(210)

 

 

 

 

Cash flows from/(used in) financing activities

 

 

 

Borrowings of short-term debt under the commercial paper programme

295

 

 

Repayment of short-term debt under the commercial paper programme

(145)

 

 

Borrowings of short-term debt under the multicurrency revolving credit facility
and the eight-month term facility

346

 

400

Repayment of short-term debt under the multicurrency revolving credit facility
and the eight-month term facility

(341)

 

(400)

Other net increase/(decrease) in short-term debt

1

(43)

18

Borrowings of long-term debt, net of issuance costs

 

612

 

Repayment of long-term debt

(478)

(223)

(352)

Repayment of debt assumed in Datavance acquisition

 

 

(19)

Prepaid forward sale of Adecco S.A. shares

 

587

 

Purchase of call spread option on Adecco S.A. shares

 

(108)

 

Dividends paid to shareholders

(91)

(173)

(163)

Proceeds from sale/(purchase) of treasury shares

28

(3)

(279)

Other financing activities

 

3

(5)

Cash flows from/(used in) financing activities

(385)

652

(800)

 

 

 

 

Effect of exchange rate changes on cash

41

33

(25)

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

(909)

884

19

 

 

 

 

Cash and cash equivalents:

 

 

 

• Beginning of year

1,458

574

555

• End of year

549

1,458

574

 

 

 

 

Supplemental disclosures of cash paid

 

 

 

Cash paid for interest

95

22

46

Cash paid for income taxes

98

96

273

The accompanying notes are an integral part of these consolidated financial statements.