Spreadsheet: jeff_dasovich__14057__OAT Valuation 0416
Sheet: OAT Cash Flow

THE QUAKER OATS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEAR ENDED DECEMBER 31
 |  | 2000 | 1999 | 1998 | 1997 | 1996 | 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income................................................ |  | 360.6 | 455 | 284.5 | -930.9 | 247.9 | 724
Adjustments to reconcile net income to net cash provided
 | by operating activities:
 | Depreciation and amortization........................ | 133 | 123.8 | 132.5 | 161.4 | 200.6 | 204
 | Deferred income taxes................................ | 19.8 | 14.2 | -31.1 | -12 | 14.3 | 22.5
 | Gains on divestitures -- net of tax of $(0.2), $1.7
and $(27.4) in 2000, 1999 and 1998, respectively.... |  | -3 | -4.5 | -26.7 | 1151.4 | -81.8 | -694.6
 | Restructuring charges................................ | 65.2 | 3.9 | 89.7 | 65.9 | 23 | 117.3
 | Asset impairment losses.............................. | 120.1 | -- | 38.1 | 39.8 | -- | --
 | Loss on disposition of property and equipment........ | 6.9 | 12.9 | 11.9 | 41.6 | 29 | 27.4
 | (Increase) decrease in trade accounts receivable..... | -50 | 14.8 | 5.6 | -61 | 62.6 | 43.7
 | Increase in inventories.............................. | -24.8 | -15.3 | -32.8 | -24.5 | 19.6 | 44.8
 | (Increase) decrease in other current assets.......... | -63.2 | 20.3 | -15.1 | -11.6 | 65.1 | -76
 | Increase (decrease) in trade accounts payable........ | 2 | 49.7 | -20 | -3.2 | -53.7 | 49.8
 | (Decrease) increase in other current liabilities..... | -102.9 | -107.1 | 21.3 | 9.8 | -164.2 | -117
 | Change in deferred compensation...................... | 35.6 | 32 | 32.2 | 20.1 | 21.5 | 21.4
 | Tax benefit from employee stock option exercises..... | 45 | 22.8 | 34.2
 | Other items.......................................... | -21.8 | 8.6 | -10.8 | 43.2 | 26.5 | 39.8
NET CASH PROVIDED BY OPERATING ACTIVITIES |  | 522.5 | 631.1 | 513.5 | 490 | 410.4 | 407.1
CASH FLOWS FROM INVESTING ACTIVITIES:
 | Purchases of marketable securities........................ | -414.1 | -185.1 | -165.5
 | Proceeds from sales of marketable securities.............. | 418.8 | 219 | 143.1
 | Business acquisitions |  |  |  | -- | -- | -57.3
 | Business divestitures (net of tax of $54.6 and $476.2 in 1996 and 1995, respectively) | -- | 14.3 | 265.9 | 300 | 174.4 | 1278.7
 | Additions to property, plant and equipment................ | -285.6 | -222.4 | -204.7 | -215.7 | -242.7 | -301.2
 | Proceeds from sales of property, plant and equipment...... | 6.4 | 13.8 | 7.7
 | Capital gains tax recovery................................ | -- | -- | 240
 | Change in other assets |  |  |  | -- | 0.2 | 4.2
Net Cash Provided by (Used in) Investing Activities |  | -274.5 | -160.4 | 286.5 | 84.3 | -68.1 | 924.4
CASH FLOWS FROM FINANCING ACTIVITIES:
 | Cash dividends............................................ | -153.5 | -156.2 | -159.7 | -159.4 | -157 | -154.8
 | Change in short-term debt................................. | 10.1 | 34.2 | -17.2 | -452.9 | -124.5 | -1243.5
 | Proceeds from long-term debt.............................. | 1.5 | 1.2 | 1.9 | 8.3 | 2.4 | 212.6
 | Reduction of long-term debt............................... | -86.6 | -95.8 | -108.7 | -54.4 | -77.7 | -60
 | Proceeds from short-term debt to be refinanced |  |  |  | -- | -- | -112
 | Issuance of common treasury stock......................... | 131.1 | 82.6 | 112 | 121.2 | 31 | 20.4
 | Repurchases of common stock............................... | -242 | -373.2 | -377.3 | -50 | -- | --
 | Repurchases of preferred stock............................ | -12.2 | -9.1 | -7.6 | -6.2 | -5.5 | -5.7
NET CASH USED IN FINANCING ACTIVITIES............. |  | -351.6 | -516.3 | -556.6 | -593.4 | -331.3 | -1343
Effect of Exchange Rate Changes on Cash and Cash Equivalents |  | -5 | 1.9 | -1 | -7.2 | 6.3 | 1.7
Net (Decrease) Increase in Cash and Cash Equivalents |  | -108.6 | -43.7 | 242.4 | -26.3 | 17.3 | -9.8
Cash and Cash Equivalents - Beginning of Period |  | 282.9 | 326.6 | 84.2 | 110.5 | 93.2 | 103
Cash and Cash Equivalents - End of Period |  | 174.3 | 282.9 | 326.6 | 84.2 | 110.5 | 93.2