Consolidated Statements of Cash Flows
THE BRINK'S COMPANY and subsidiaries
| Years Ended December 31, | ||||
| (In millions) | 2006 | 2005 | 2004 | |
| Cash flows from operating activities: | ||||
| Net income | $ | 587.2 | 142.4 | 121.5 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| Income from discontinued operations | (483.9) | (105.5) | (50.0) | |
| Cumulative effect of change in accounting principle | - | 5.4 | - | |
| Depreciation and amortization | 164.3 | 149.3 | 133.2 | |
| Impairment charges from subscriber disconnects | 47.1 | 45.2 | 38.4 | |
| Amortization of deferred revenue | (31.2) | (29.5) | (26.1) | |
| Deferred income taxes | 151.3 | 11.8 | 8.6 | |
| Provision for uncollectible accounts receivable | 7.9 | 3.6 | 4.2 | |
| Share-based compensation | 11.1 | - | - | |
| Other operating, net | 26.4 | 17.1 | 17.2 | |
| Postretirement benefit funding (more) less than expense: | ||||
| Pension | 10.5 | 38.0 | 14.3 | |
| Other than pension | (257.4) | (11.5) | (61.8) | |
| Change in operating assets and liabilities, net of effects of acquisitions: | ||||
| Accounts receivable | (49.6) | (42.2) | (16.0) | |
| Accounts payable and accrued liabilities | (170.8) | 16.8 | 26.0 | |
| Deferred subscriber acquisition cost | (24.4) | (22.9) | (19.5) | |
| Deferred revenue from new subscribers | 44.9 | 40.7 | 34.6 | |
| Other, net | (1.2) | 1.1 | 7.3 | |
| Discontinued operations, net | 0.1 | 54.2 | 53.0 | |
| Net cash provided by operating activities | 32.3 | 314.0 | 284.9 | |
| Cash flows from investing activities: | ||||
| Capital expenditures | (279.3) | (271.7) | (194.9) | |
| Acquisitions | (14.4) | (53.2) | (14.8) | |
| Marketable securities: | ||||
| Purchases | (1,663.7) | (7.2) | (5.3) | |
| Sales | 1,654.1 | 1.2 | 1.1 | |
| Cash proceeds from disposal of: | ||||
| BAX Global, net of $90.3 million of cash disposed | 1,010.5 | - | - | |
| Natural resource interests | - | 5.0 | 28.6 | |
| Other property and equipment | 5.2 | 3.8 | 8.8 | |
| Other, net | 0.5 | (0.3) | 3.1 | |
| Discontinued operations, net | (5.2) | (72.8) | (49.1) | |
| Net cash provided (used) by investing activities | 707.7 | (395.2) | (222.5) | |
| Cash flows from financing activities: | ||||
| Long-term debt: | ||||
| Additions | 132.3 | 211.9 | 89.5 | |
| Repayments | (295.5) | (139.3) | (118.4) | |
| Short-term borrowings (repayments), net | 3.8 | 14.0 | (7.9) | |
| Repurchase shares of common stock of The Brink's Company | (630.9) | - | - | |
| Excess tax benefits from exercise of stock options | 5.1 | - | - | |
| Proceeds from exercise of stock options | 18.6 | 28.3 | 24.2 | |
| Dividends to: | ||||
| Shareholders of The Brink's Company | (10.1) | (5.5) | (5.4) | |
| Minority interest holders in subsidiaries | (9.0) | (6.7) | (4.8) | |
| Other, net | (2.7) | (1.4) | (1.8) | |
| Discontinued operations, net | 5.4 | (7.7) | (2.3) | |
| Net cash provided (used) by financing activities | (783.0) | 93.6 | (26.9) | |
| Effect of exchange rate changes on cash | 5.4 | (6.6) | 4.8 | |
| Cash and cash equivalents: | ||||
| Increase (decrease) | (37.6) | 5.8 | 40.3 | |
| Balance at beginning of year | 96.2 | 169.0 | 128.7 | |
| Amount held by BAX Global at December 31, 2005 | 78.6 | (78.6) | - | |
| Balance at end of year | $ | 137.2 | 96.2 | 169.0 |
See accompanying notes to consolidated financial statements.
