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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Cash Flows from Operating Activities      
Net loss $ (107.4) $ (1,145.6) $ (384.9)
Loss from discontinued operations, net of tax 14.0 349.1 40.4
Loss from continuing operations, net of tax (93.4) [1],[2] (796.5) [1],[2] (344.5)
Adjustments to reconcile net loss to net cash provided by operating activities:      
Depreciation 83.3 94.0 121.7
Amortization 30.6 32.1 47.7
Provision for doubtful accounts 190.5 144.1 171.1
Provision for obsolescence 36.5 45.4 78.4
Share-based compensation 24.0 51.2 38.9
Foreign exchange losses 6.1 44.3 41.4
Deferred income taxes (8.5) 644.6 236.4
Charge for Venezuelan monetary assets and liabilities 0.0 (4.2) 53.7
Charge for Venezuelan non-monetary assets 0.0 101.7 115.7
Loss on deconsolidation of Venezuela 120.5 0.0 0.0
Pre-tax gain on sale of business 0.0 (44.9) 0.0
Impairment of goodwill 0.0 6.9 0.0
Other (3.3) 11.6 10.8
Changes in assets and liabilities:      
Accounts receivable (216.6) (184.7) (179.0)
Inventories (28.6) (106.6) (170.5)
Prepaid expenses and other 16.8 8.7 (77.0)
Accounts payable and accrued liabilities (17.6) 80.4 142.6
Income and other taxes (4.7) 50.7 57.5
Noncurrent assets and liabilities (7.6) (87.4) (56.0)
Net cash provided by operating activities of continuing operations 128.0 91.4 288.9
Cash Flows from Investing Activities      
Capital expenditures (93.0) (92.4) (126.3)
Disposal of assets 13.3 8.2 15.7
Net proceeds from sale of business 0.0 208.3 0.0
Purchases of investments 0.0 (35.3) (26.8)
Net proceeds from sale of investments 0.0 53.7 36.9
Reduction of cash due to Venezuela deconsolidation (4.5) 0.0 0.0
Other investing activities 1.5 0.0 0.0
Net cash (used) provided by investing activities of continuing operations (82.7) 142.5 (100.5)
Cash Flows from Financing Activities      
Cash dividends 0.0 (108.8) (110.2)
Debt, net (maturities of three months or less) (36.4) (59.1) (22.4)
Proceeds from debt 508.7 7.6 0.0
Repayment of debt (733.0) (261.2) (66.5)
Net proceeds from exercise of stock options 0.0 0.0 0.2
Repurchase of common stock (5.6) (3.1) (9.8)
Net proceeds from the sale of Series C convertible preferred stock 426.3 0.0 0.0
Other financing activities (23.0) (5.9) 0.0
Net cash provided (used) by financing activities of continuing operations 137.0 (430.5) (208.7)
Cash Flows from Discontinued Operations      
Net cash (used) provided by operating activities of discontinued operations (67.6) 20.7 70.9
Net cash used by investing activities of discontinued operations (94.6) (4.2) (4.6)
Net cash used by financing activities of discontinued operations 0.0 (15.0) (10.1)
Net cash (used) provided by discontinued operations (162.2) 1.5 56.2
Effect of exchange rate changes on cash and equivalents (50.4) (80.7) (183.3)
Net decrease in cash and equivalents (30.3) (275.8) (147.4)
Cash and equivalents at beginning of year [4] 684.7 [3] 960.5 [3] 1,107.9
Cash and equivalents at end of year [3] 654.4 684.7 [4] 960.5 [4]
Cash paid for:      
Interest 87.1 128.6 123.8
Income taxes, net of refunds received $ 143.3 $ 162.5 $ 229.2
[1] (Loss) income from continuing operations, before taxes during 2016 was impacted by:•the deconsolidation of our Venezuelan operations. As a result of the change to the cost method of accounting, in the first quarter of 2016 we recorded a loss of $120.5 in other expense, net. The loss was comprised of $39.2 in net assets of the Venezuelan business and $81.3 in accumulated foreign currency translation adjustments within AOCI associated with foreign currency movements before Venezuela was accounted for as a highly inflationary economy;•a gain on extinguishment of debt of $3.9 before and after tax in the third quarter caused by the deferred gain associated with interest-rate swap agreement terminations, partially offset by the early tender premium paid, the deferred loss associated with treasury lock agreements, deal costs and the write-off of debt issuance costs and discounts associated with the cash tender offers in August 2016;•a loss on extinguishment of debt of $1.0 before and after tax in the fourth quarter caused by the premium paid for the repurchases, the write-off of debt issuance costs and discounts and the deferred loss associated with treasury lock agreements, partially offset by the deferred gain associated with interest-rate swap agreement terminations associated with the debt repurchases in October 2016;•a loss on extinguishment of debt of $2.9 before and after tax in the fourth quarter caused by the make-whole premium, the deferred loss associated with treasury lock agreements and the write-off of debt issuance costs and discounts and partially offset by the deferred gain associated with interest-rate swap agreement terminations associated with the prepayment of the remaining principal amount of the 4.20% Notes (as defined in Note 6, Debt and Other Financing) and 5.75% Notes (as defined in Note 6, Debt and Other Financing); and•a gain on extinguishment of debt of $1.1 before and after tax in the fourth quarter consisting of the discount received for the repurchases, partially offset by the write-off of debt issuance costs and discounts associated with the debt repurchases in December 2016.(Loss) income from continuing operations, before taxes during 2015 was impacted by:•an after-tax benefit of $3.4 (benefit of $4.2 in other expense, net, and a loss of $.8 in income taxes) recorded in the first quarter, primarily reflecting the write-down of net monetary assets due to the change to the SIMADI rate;•the gain on sale of Liz Earle of $44.9 before tax ($51.6 after tax), primarily recorded in the third quarter;•a loss on extinguishment of debt of $5.5 before and after tax in the third quarter caused by the make-whole premium and the write-off of debt issuance costs and discounts, associated with the prepayment of the 2.375% Notes (as defined in Note 6, Debt and Other Financing); and •a charge of $2.5 before and after tax in the second quarter of 2015 associated with the write-off of issuance costs related to our previous $1 billion revolving credit facility.
[2] (Loss) income from continuing operations, net of tax during 2016 was impacted by a non-cash income tax charge for valuation allowances for deferred tax assets outside of the U.S of $8.6, which was recorded in the fourth quarter, the release of a valuation allowance associated with Russia of $7.1 which was recorded in the second quarter, and an income tax benefit of $29.3 recognized as the result of the implementation of foreign tax planning strategies which was recorded in the first quarter. (Loss) income from continuing operations, net of tax during 2015 was impacted by an aggregate non-cash income tax charge of $685.1. This was primarily due to additional valuation allowances for U.S. deferred tax assets of $641.6 and $31.3 which were recorded in the third and first quarters of 2015, respectively, partially offset by a partial release of a valuation allowance for deferred tax assets of $3.2 which was recorded in the second quarter of 2015. The additional valuation allowances in the third and first quarters of 2015 was due to the continued strengthening of the U.S. dollar against currencies of some of our key markets and the impact on the benefits from our tax planning strategies associated with the realization of our deferred tax assets. The partial release of the valuation allowance in the second quarter of 2015 was due to the weakening of the U.S. dollar against currencies of some of our key markets. In addition, the non-cash income tax charge was due to valuation allowances for deferred tax assets outside of the U.S. of $15.4, primarily in Russia, which was recorded in the third quarter of 2015, which was largely due to lower earnings, which were significantly impacted by foreign exchange losses on working capital balances. In addition, (loss) income from continuing operations, net of tax during 2015 was impacted by an income tax benefit of $18.7, which was recorded in the fourth quarter of 2015, recognized as a result of the implementation of the initial stages of foreign tax planning strategies.
[3] Includes cash and cash equivalents of discontinued operations of $(2.2) and $24.1 at the end of the year in 2015 and 2014, respectively.
[4] Includes cash and cash equivalents of discontinued operations of $(2.2), $24.1, $17.9 at the beginning of the year in 2016, 2015 and 2014, respectively.