Consolidated Statements of Cash Flows
Consolidated Statement of Cash Flows € in millions
| (Note) | Year ending Dec. 31, 2006 |
Year ending Dec. 31, 2005 |
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| Operating activities: | |||
| Income before taxes |
723 | 655 | |
| Adjustments for: |
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| Depreciation and amortization |
(11, 13, 14, 25) |
217 | 128 |
| Unrealized foreign exchange losses/(gains), net |
76 | (61) | |
| Interest income |
(27) | (37) | (36) |
| Interest expense |
(27) | 184 | 74 |
| Losses on sale of property, plant and equipment, net |
2 | 3 | |
| Operating profit before working capital changes |
1,165 | 763 | |
| Decrease/(Increase) in receivables and other current assets |
52 | (303) | |
| Decrease/(Increase) in inventories |
98 | (142) | |
| (Decrease)/Increase in accounts payable and other current liabilities |
(98) | 289 | |
| Cash provided by operations |
1,217 | 607 | |
| Interest paid |
(158) | (68) | |
| Income taxes paid |
(297) | (159) | |
| Net cash provided by continuing operating activities |
762 | 380 | |
| Net cash used in discontinued operating activities |
— | (28) | |
| Net cash provided by total operating activities |
762 | 352 | |
| Investing activities: |
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| Purchase of trademarks and other intangible assets |
(75) | (27) | |
| Proceeds from sale of other intangible assets | 19 | 6 | |
| Purchase of property, plant and equipment |
(202) | (188) | |
| Purchase of finance leased assets |
(170) | 0 | |
| Proceeds from sale of property, plant and equipment |
36 | 14 | |
| Acquisition of minority shareholders |
(5) | (32) | 0 |
| Acquisition of subsidiaries net of cash acquired |
(5) | (2,432) | 0 |
| Buyback of employee stock options and convertible bonds |
(223) | 0 | |
| Disposal of discontinued operations net of cash |
(31) | 33 | 450 |
| Sale of short-term financial assets | 22 | 201 | |
| Purchase of investments and other long-term assets |
(1) | (53) | |
| Interest received | 37 | 37 | |
| Net cash (used in)/provided by investing activities | (2,988) | 440 | |
| Financing activities: | |||
| Increase in long-term borrowings | 1,099 | 106 | |
| Proceeds from issue of share capital | — | 639 | |
| Dividend of adidas AG | (22) | (66) | (60) |
| Dividends to minority shareholders | (4) | (3) | |
| Exercised share options | 6 | 20 | |
| Capital contributions by minority shareholders | — | (2) | |
| Decrease in short-term borrowings | — | (186) | |
| Net cash provided by financing activities | 1,035 | 514 | |
| Effect of exchange rates on cash | (23) | 23 | |
| (Decrease)/Increase in cash and cash equivalents | (1,214) | 1,329 | |
| Cash and cash equivalents at beginning of year | (6) | 1,525 | 196 |
| Cash and cash equivalents at year-end | (6) | 311 | 1,525 |
The accompanying Notes are an integral part of these consolidated financial statements. |
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