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Financials Consolidated Financial Statements Consolidated Statement of Cash Flows
Financials Consolidated Financial Statements Consolidated Statement of Cash Flows CONSOLIDATED STATEMENTS OF CASH FLOWS
for the years ended December 31,
| Note | 2006 | 2005 | 2004 | |
| €(000) | €(000) | €(000) | ||
| Net income | 1,871,377 | 1,496,407 | 1,310,521 | |
| Minority interests | 1,810 | 2,896 | 4,852 | |
| Income before minority interests | 1,873,187 | 1,499,303 | 1,315,373 | |
| Adjustments to reconcile income before minority interests to net cash provided by operating activities: | ||||
| Depreciation and amortization | 214,243 | 203,545 | 209,669 | |
| Loss (income) from equity investees | (10) | 672 | – 610 | 342 |
| Gains/losses on disposal of property, plant, and equipment | – 2,114 | – 4,726 | 549 | |
| Gains on disposal of investments | – 298 | – 1,075 | – 14,034 | |
| Writeups/downs of financial assets | 383 | 13,519 | 17,800 | |
| Impacts of STAR hedging | – 79,482 | 7,399 | – 7,428 | |
| Stock-based compensation including income tax benefits | 81,804 | 50,096 | 18,828 | |
| Excess tax benefit from stock-based compensation | – 2,869 | 0 | 0 | |
| Change in accounts receivables | – 270,228 | – 321,926 | – 158,385 | |
| Change in accrued and other liabilities | 132,655 | 165,474 | 433,545 | |
| Deferred income taxes | – 2,124 | – 16,064 | 19,205 | |
| Change in other assets | – 218,895 | – 63,869 | – 9,958 | |
| Change in deferred income | 119,881 | 76,834 | 19,821 | |
| Net cash provided by operating activities | (24) | 1,846,815 | 1,607,900 | 1,845,327 |
| Acquisition of minority interests in subsidiaries | 0 | – 59,964 | – 168,103 | |
| Business combinations, net of cash and cash equivalents acquired | – 504,287 | – 176,849 | – 19,181 | |
| Purchase of intangible assets and property, plant, and equipment | – 366,735 | – 261,762 | – 192,682 | |
| Proceeds from disposal of intangible assets and property, plant, and equipment | 29,004 | 17,243 | 21,381 | |
| Purchase of investments | – 2,055,315 | – 4,484,582 | – 3,540,598 | |
| Sales of investments | 2,765,324 | 4,386,854 | 3,155,661 | |
| Purchase of other financial assets | – 16,967 | – 17,104 | – 30,759 | |
| Sales of other financial assets | 15,154 | 12,709 | 25,959 | |
| Net cash used in investing activities | – 133,822 | – 583,455 | – 748,322 | |
| Dividends paid | – 447,219 | – 340,425 | – 248,716 | |
| Purchase of treasury stock | – 1,149,185 | – 454,357 | – 175,018 | |
| Proceeds from reissuance of treasury stock | 165,105 | 205,695 | 55,856 | |
| Proceeds from issuance of common stock (stock-based compensation) | 49,366 | 42,748 | 15,395 | |
| Excess tax benefit from stock-based compensation | 2,869 | 0 | 0 | |
| Repayment of bonds | – 514 | – 350 | – 2,806 | |
| Proceeds from convertible bonds | 0 | 0 | 6,754 | |
| Proceeds from short-term and long-term debt | 43,761 | 338,558 | 107,807 | |
| Repayments of short-term and long-term debt | – 43,206 | – 339,171 | – 104,389 | |
| Proceeds from the exercise of equity-based derivative instruments (STAR hedge) | 57,376 | 39,278 | 0 | |
| Purchase of equity-based derivative instruments (STAR hedge) | – 53,256 | – 46,864 | – 43,041 | |
| Net cash used in financing activities | – 1,374,903 | – 554,888 | – 388,158 | |
| Effect of foreign exchange rates on cash and cash equivalents | – 3,433 | 88,724 | – 41,791 | |
| Net increase in cash and cash equivalents | 334,657 | 558,281 | 667,056 | |
| Cash and cash equivalents at the beginning of the period | 2,064,074 | 1,505,793 | 838,737 | |
| Cash and cash equivalents at the end of the period | (13) | 2,398,731 | 2,064,074 | 1,505,793 |
The accompanying Notes are an integral part of these Consolidated Financial Statements.