Annual Report 2011
Adecco Group –
Consolidated statements of cash flows
in millions, except share and per share information
For the fiscal years ended December 31 (in EUR) | 2011 | 2010 | 2009 |
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Cash flows from operating activities |
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Net income | 520 | 424 | 8 |
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Adjustments to reconcile net income to cash flows from operating activities: |
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• Depreciation and amortisation | 144 | 142 | 123 |
• Impairment of goodwill and intangible assets |
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| 192 |
• Bad debt expense | 16 | 12 | 16 |
• Stock-based compensation | 12 | 5 | 1 |
• Deferred tax provision/(benefit) | (52) | 5 | (76) |
• Tax impact of treasury shares valuation in Adecco S.A. |
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| (22) |
• Other, net | 19 | 25 | 19 |
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Changes in operating assets and liabilities, net of acquisitions: |
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• Trade accounts receivable | (151) | (667) | 577 |
• Accounts payable and accrued expenses | 17 | 460 | (393) |
• Other assets and liabilities | (1) | 49 | 32 |
Cash flows from operating activities | 524 | 455 | 477 |
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Cash flows from investing activities |
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Capital expenditures | (109) | (105) | (92) |
Proceeds from sale of property and equipment | 4 | 1 | 1 |
Acquisition of DBM, net of cash acquired | (148) |
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Acquisition of MPS, net of cash acquired |
| (831) |
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Acquisition of Spring, net of cash acquired |
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| (94) |
Cash settlements on derivative instruments | (59) | (51) | (35) |
Other acquisition and investing activities | (5) | (34) | (58) |
Cash used in investing activities | (317) | (1,020) | (278) |
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Cash flows from financing activities |
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Borrowings of short-term debt under the commercial paper programme | 919 | 295 |
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Repayment of short-term debt under the commercial paper programme | (927) | (145) |
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Borrowings of short-term debt under the multicurrency revolving credit facility |
| 346 |
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Repayment of short-term debt under the multicurrency revolving credit facility |
| (341) |
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Other net increase/(decrease) in short-term debt | (1) | 1 | (43) |
Borrowings of long-term debt, net of issuance costs | 330 |
| 612 |
Repayment of long-term debt | (214) | (478) | (223) |
Prepaid forward sale of Adecco S.A. shares |
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| 587 |
Purchase of call spread option on Adecco S.A. shares |
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| (108) |
Dividends paid to shareholders | (149) | (91) | (173) |
Proceeds from sale/(purchase) of treasury shares | (178) | 28 | (3) |
Cash settlements on derivative instruments | 2 |
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Other financing activities | (6) |
| 3 |
Cash flows from/(used in) financing activities | (224) | (385) | 652 |
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Effect of exchange rate changes on cash |
| 41 | 33 |
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Net increase/(decrease) in cash and cash equivalents | (17) | (909) | 884 |
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Cash and cash equivalents: |
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• Beginning of year | 549 | 1,458 | 574 |
• End of year | 532 | 549 | 1,458 |
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Supplemental disclosures of cash paid |
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Cash paid for interest | 56 | 95 | 22 |
Cash paid for income taxes | 180 | 98 | 96 |
The accompanying notes are an integral part of these consolidated financial statements.