 |
|
|
 |
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|
|
LIQUIDITY AND CAPITAL RESOURCES
Statements of Cash Flows
At July 31, 2004 our cash, cash equivalents and short-term investments totaled $1.0 billion, a decrease of $187.6 million from July 31, 2003. In fiscal 2004, we generated cash primarily from continuing operations and the issuance of common stock under employee stock plans and we used cash
primarily for our stock repurchase programs, acquisitions and capital expenditures. The following table summarizes selected items from our statements
of cash flows for fiscal 2004, 2003 and 2002. See the financial statements for complete statements of cash flows for those periods.
| |
FISCAL |
|
| (In millions) |
2002 |
2003 |
2004 |
|
Net cash provided by operating activities |
$ |
351.6 |
|
$ |
570.2 |
|
$ |
574.6 |
|
 |
Net income from continuing operations |
|
53.6 |
|
|
263.2 |
|
|
317.0 |
|
|
Acquisition-related costs |
|
196.0 |
|
|
56.6 |
|
|
56.6 |
|
|
Depreciation |
|
58.8 |
|
|
73.8 |
|
|
77.6 |
|
|
Net cash used in investing activities |
|
(38.4 |
) |
|
(492.7 |
) |
|
(211.0 |
) |
|
Acquisitions of businesses, net of cash acquired |
|
(284.1 |
) |
|
(214.8 |
) |
|
(123.6 |
) |
|
Net liquidation (purchases) of available-for-sale debt securities |
|
295.1 |
|
|
(230.6 |
) |
|
(64.3 |
) |
|
Purchases of property and equipment |
|
(42.1 |
) |
|
(50.4 |
) |
|
(61.1 |
) |
|
Capitalization of internal use software |
|
(21.3 |
) |
|
(34.3 |
) |
|
(57.1 |
) |
|
Net cash used in financing activities |
|
(196.1 |
) |
|
(661.8 |
) |
|
(506.5 |
) |
|
Purchase of treasury stock |
|
(318.4 |
) |
|
(814.3 |
) |
|
(610.2 |
) |
|
Net proceeds from issuance of common stock |
|
133.6 |
|
|
155.9 |
|
|
119.1 |
|
|
Net cash provided by discontinued operations |
|
225.2 |
|
|
341.4 |
|
|
- |
|
|
Net increase (decrease) in cash and cash equivalents |
|
342.0 |
|
|
(238.9 |
) |
|
(142.8 |
) |
|
We generated cash from our operations during fiscal 2004, 2003 and 2002, including net income from continuing operations in each of those years.
Acquisition-related costs were significantly higher in fiscal 2002 than in fiscal 2003 and 2004 primarily because we amortized goodwill in fiscal 2002.
Due to our adoption of SFAS 142, we stopped amortizing goodwill in fiscal 2003. Acquisition-related costs also included impairments of goodwill and
purchased intangible assets of $27.3 million in fiscal 2002 and $18.7 million in fiscal 2004.
We used cash for investing activities during fiscal 2004, 2003 and 2002. Our primary use of cash for investing activities was for business acquisitions.
On a net basis, we invested cash in available-for-sale debt securities in fiscal 2004 and 2003 while we drew cash from them in fiscal 2002.
We used cash for our financing activities in fiscal 2004, 2003 and 2002, primarily for the repurchase of stock under our stock repurchase programs.
See "Stock Repurchase Programs" below and Note 15 to the financial statements. This was partially offset by proceeds that we received from the
issuance of common stock under employee stock plans in each of these fiscal years.
Cash generated by discontinued operations in fiscal 2003 included collection of $241.6 million in amounts due from Quicken Loans and Intuit KK
and a net gain of $71.0 million from the sale of Intuit KK. Cash generated by discontinued operations during fiscal 2002 was primarily from collection of $108.1 million in amounts due from Quicken Loans and Intuit KK, net income from discontinued operations of $63.2 million and a gain of $23.3 million on the sale of Quicken Loans.
|
|
|
