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Consolidated Statements of Cash Flows (USD $)
In Millions
9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:  
Net income$ 609.7$ 422.7
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation and amortization212.3189.2
Share based compensation54.744.2
Impairment of intangible assets16.042.7
Gain on sale of non-current investments(23.5)(11.1)
Other5.95.2
Movement in deferred taxes(13.2)48.7
Equity in earnings of equity method investees(3.2)(0.2)
Loss/(gain) on sale of product rights3.8(4.1)
Changes in operating assets and liabilities:  
Increase in accounts receivable(122.8)(138.0)
Increase in sales deduction accrual46.2169.0
Increase in inventory(42.8)(54.1)
Decrease/(increase) in prepayments and other assets17.3(67.0)
Decrease in accounts payable and other liabilities(101.4)(41.0)
Returns on investment from joint venture5.25.8
Net cash provided by operating activities664.2612.0
CASH FLOWS FROM INVESTING ACTIVITIES:  
Movements in restricted cash5.7(547.0)
Purchases of subsidiary undertakings, net of cash acquired(723.5)0
Payments on foreign exchange contracts related to Movetis NV acquisition ("Movetis")0(21.2)
Purchases of non-current investments(8.3)(1.0)
Purchases of property, plant and equipment ("PP&E")(135.9)(261.7)
Purchases of intangible assets(5.2)(2.7)
Proceeds from disposal of non-current investments, PP&E and product rights94.72.1
Proceeds/deposits received on sales of product rights8.80
Returns of equity investments and proceeds from short term investments1.70
Net cash used in investing activities(762.0)(831.5)
CASH FLOWS FROM FINANCING ACTIVITIES:  
Proceeds from drawing of revolving credit facility ("RCF")30.00
Repayment of RCF(30.0)0
Repayment of debt acquired with Advanced BioHealing, Inc. ("ABH")(13.1)0
Payment under building finance obligation(1.0)(1.8)
Extinguishment of building finance obligation0(43.1)
Tax benefit of stock based compensation23.79.6
Proceeds from exercise of options0.92.1
Payment of dividend(60.5)(49.8)
Payments to acquire shares by ESOT(126.8)(1.7)
Net cash used in financing activities(176.8)(84.7)
Net decrease in cash and cash equivalents(274.2)(305.6)
Effect of foreign exchange rate changes on cash and cash equivalents0.4(1.4)
Cash and cash equivalents at beginning of period550.6498.9
Cash and cash equivalents at end of period276.4193.3
Supplemental information associated with continuing operations:  
Interest paid(16.9)(11.7)
Income taxes paid(264.5)(291.6)
Non cash investing and financing activities:  
Equity in Vertex Pharmaceuticals, Inc. ("Vertex") received as part consideration for disposal of non-current investment in Virochem Pharma, Inc. ("Virochem").$ 0$ 9.1