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CONSOLIDATED STATEMENT OF CASH FLOWS 
UNITED ASSET MANAGEMENT CORPORATION 

 

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YEAR ENDED DECEMBER 31,                                           1995              1994               1993 
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<S>                                                     <C>               <C>               <C>    
Cash flow from operating activities: 
 Net income                                              $  67,317,000     $  59,012,000     $  53,287,000 
 Adjustments to reconcile net income to net cash flow 
   from operating activities: 
  Amortization of cost assigned to contracts acquired       93,192,000        55,121,000        48,493,000 
  Depreciation                                               6,151,000         4,592,000         4,172,000 
  Other amortization                                         1,695,000         1,261,000         1,445,000 
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 Net income plus amortization and depreciation             168,355,000       119,986,000       107,397,000 
 Changes in assets and liabilities: 
  Increase in investment advisory fees receivable          (46,819,000)       (1,758,000)       (8,038,000) 
  Decrease (increase) in other current assets                   27,000        (7,276,000)         (103,000) 
  Increase in accounts payable and accrued expenses         28,993,000         7,649,000        11,290,000 
  Increase in accrued compensation                          37,765,000        27,615,000         2,172,000 
  Increase in deferred income taxes                          7,321,000         3,629,000         4,751,000 
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Net cash flow from operating activities                    195,642,000       149,845,000       117,469,000 
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Cash flow used in investing activities: 
 Purchase of fixed assets                                  (13,576,000)       (8,747,000)       (4,508,000) 
 Cash additions to cost assigned to contracts 
  acquired                                                 (43,582,000)     (161,649,000)      (30,499,000) 
 Change in other assets                                     (1,115,000)       (4,099,000)       (2,045,000) 
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Net cash flow used in investing activities                 (58,273,000)     (174,495,000)      (37,052,000) 
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Cash flow from (used in) financing activities: 
 Purchase of treasury shares                               (48,819,000)      (14,883,000)       (4,166,000) 
 Reductions in long-term debt                             (295,188,000)     (140,280,000)     (114,736,000) 
 Additions to long-term debt                               266,500,000       224,500,000        64,500,000 
 Issuance or reissuance of equity securities                10,494,000         8,153,000         9,590,000 
 Dividends declared                                        (35,275,000)      (28,123,000)      (20,304,000) 
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Net cash flow from (used in) financing activities         (102,288,000)       49,367,000       (65,116,000) 
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Effect of foreign exchange rate changes on cash flow          (363,000)        1,526,000          (562,000) 
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Net increase in cash and cash equivalents                   34,718,000        26,243,000        14,739,000 
Cash and cash equivalents at beginning of year              89,050,000        62,807,000        48,068,000 
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Cash and cash equivalents at end of year                 $ 123,768,000     $  89,050,000     $  62,807,000 
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See Notes to Consolidated Financial Statements. 

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