| Year to December 31, | 2009 $'M |
2008 $'M |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net income | 491.4 | 152.4 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Loss from discontinued operations | 12.4 | 17.6 |
| Depreciation and amortization | 250.2 | 202.9 |
| Share-based compensation | 65.7 | 65.2 |
| IPR&D charge | 1.6 | 128.1 |
| Impairment of intangible assets | - | 97.1 |
| Impairment of available-for-sale securities | 0.8 | 58.0 |
| Gain on sale of non-current investments | (55.2) | (10.1) |
| Gain on sale of product rights | (6.3) | (20.7) |
| Other | 12.2 | 10.5 |
| Movement in deferred taxes | (98.8) | 74.0 |
| Equity in losses/(earnings) of equity-method investees | 0.7 | (2.4) |
| Changes in operating assets and liabilities: | ||
| (Increase)/decrease in accounts receivable | (212.3) | 9.4 |
| Increase in sales deduction accrual | 134.7 | 84.3 |
| (Increase)/decrease in inventory | (38.7) | 36.4 |
| Decrease/(increase) in prepayments and other current assets | (30.1) | (9.6) |
| Decrease in other assets | 0.8 | 3.6 |
| Increase/(decrease) in accounts and notes payable and other liabilities | 38.6 | (99.0) |
| Returns on investment | 4.9 | 7.1 |
| Cash flows used in discontinued operations | (5.9) | (4.7) |
| Net cash provided by operating activities(A) | 626.9 | 800.1 |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Movements in restricted cash | (3.9) | 10.3 |
| Purchases of subsidiary undertakings and businesses, net of cash acquired | (83.3) | (499.4) |
| Payment on settlement of TKT appraisal rights litigation | - | (419.9) |
| Purchases of non-current investments | (0.9) | (2.2) |
| Purchases of property, plant and equipment | (254.4) | (236.0) |
| Purchases of intangible assets | (7.0) | (25.0) |
| Proceeds from disposal of non-current investments | 19.2 | 10.3 |
| Proceeds from disposal of property, plant and equipment | 1.0 | 1.8 |
| Proceeds/deposits received on sales of product rights | - | 5.0 |
| Proceeds from disposal of subsidiary undertakings | 6.7 | - |
| Returns from equity investments | 0.2 | 0.6 |
| Net cash used in investing activities(B) | (322.4) | (1,154.5) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||
| Proceeds from drawings under bank facility | - | 190.0 |
| Repayment of drawings under bank facility | - | (190.0) |
| Proceeds from building finance obligation | - | 11.3 |
| Payment under building financing obligation | (4.7) | (1.8) |
| Excess tax benefit of share-based compensation | 16.8 | - |
| Costs from issue of common stock, net | - | (5.6) |
| Proceeds from exercise of options | 14.6 | 11.4 |
| Payment of dividend | (54.4) | (46.8) |
| Payments to acquire shares by Employee Share Ownership Trust ('ESOT') | (1.0) | (146.6) |
| Net cash used in financing activities(C) | (28.7) | (178.1) |
| Effect of foreign exchange rate changes on cash and cash equivalents(D) | 4.9 | (11.8) |
| Net increase/(decrease) in cash and cash equivalents(A+B+C+D) | 280.7 | (544.3) |
| Cash and cash equivalents at beginning of period | 218.2 | 762.5 |
| Cash and cash equivalents at end of period | 498.9 | 218.2 |
