Kaman

AR 13

Financials

Part II

Financials/Financial Statements and Supplementary Data/Consolidated Statements of Cash Flows

KAMAN CORPORATION AND SUBSIDIARIES

For the Year Ended
December 31,
(In thousands) 2013 2012 2011
Cash flows from operating activities:
Earnings from continuing operations $ 56,699 $ 53,928 $ 49,928
Adjustments to reconcile earnings from continuing operations to net cash provided by (used in) operating activities of continuing operations:
Depreciation and amortization 31,875 28,383 23,168
Accretion of convertible notes discount 1,833 1,738 1,679
Provision for doubtful accounts 1,635 537 1,337
Net loss on sale of assets 128 105 269
Goodwill impairment 2,071
Change in amount Due to Commonwealth of Australia, net
of gain (loss) on derivative instruments
178 (427) 279
Stock compensation expense 4,973 5,865 6,806
Excess tax (expense) benefit from share-based
compensation arrangements
(543) (883) (779)
Deferred income taxes 1,991 (1,210) 5,472
Changes in assets and liabilities,
excluding effects of acquisitions/divestures:
Accounts receivable (23,016) 26,186 (4,802)
Inventories (19,131) (21,289) (12,502)
Income tax receivable (2,297) 527 1,893
Other current assets 1,110 4,619 6,861
Accounts payable-trade 13,058 1,688 1,358
Other accrued expenses and payables (3,742) (16,114) (19,798)
Income taxes payable (2,325) (576) 42
Pension liabilities (3,118) 56 (14,150)
Other long-term liabilities 1,168 1,447 (3,200)
Net cash provided by (used in) operating activities of continuing operations 62,547 84,580 43,861
Net cash provided by (used in) operating activities of discontinued operations 401 (3,610) 982
Net cash provided by (used in) operating activities 62,948 80,970 44,843
Cash flows from investing activities:
Proceeds from sale of assets 117 348 355
Proceeds from sale of discontinued operations 8,743
Expenditures for property, plant & equipment (40,928) (32,569) (28,816)
Acquisition of businesses including earn out adjustments, net of cash received (18,162) (87,977) (77,672)
Other, net (2,302) (6,401) 17
Cash provided by (used in) investing activities of continuing operations (61,275) (117,856) (106,116)
Cash provided by (used in) investing activities of discontinued operations (8) (16)
Cash provided by (used in) investing activities (61,275) (117,864) (106,132)
Cash flows from financing activities:
Net borrowings (repayments) under revolving
credit agreements
22,720 (11,348) 62,021
Borrowings under Term Loan Facility 100,000
Debt repayment (10,000) (35,000) (5,000)
Net change in book overdraft (9,878) (2,698) 4,372
Proceeds from exercise of employee stock awards 6,333 7,550 5,458
Purchase of treasury shares (644) (733) (5,583)
Dividends paid (17,091) (16,882) (15,199)
Debt issuance costs (98) (2,132) (715)
Windfall tax (expense) benefit 543 883 779
Other (660)
Cash provided by (used in) financing activities of continuing operations (8,115) 39,640 45,473
Cash provided by (used in) financing activities of discontinued operations (1,067) (1,094)
Cash provided by (used in) financing activities (8,115) 38,573 44,379
Net increase (decrease) in cash and cash equivalents (6,442) 1,679 (16,910)
Effect of exchange rate changes on cash and cash equivalents 233 (71) (337)
Cash and cash equivalents at beginning of period 16,593 14,985 32,232
Cash and cash equivalents at end of period $ 10,384 $ 16,593 $ 14,985

See accompanying notes to consolidated financial statements.