EX-99 3 exhibit99-1.txt EXHIBIT 99.1
Exhibit 99.1 Consolidated Statements of Cash Flows (unaudited) Fiscal Year Ended September 30 ----------------------------------------------------------------------------------------------------------------------------------- (in thousands) 2002 2001 2000 ----------------------------------------------------------------------------------------------------------------------------------- Cash Flows from Operating Activities Net Income $ 150,334 $ 15,205 $ 29,082 Additions (deductions) to reconcile net income to net cash provided by operating activities of continuing operations: Depreciation 116,837 119,993 133,012 Amortization 14,210 58,575 62,082 Provisions for losses on accounts receivable 4,685 7,758 21,631 Provision for deferred income taxes 73,611 42,411 57,409 Provision for lease default reserves 67,730 66,631 61,740 Restructuring (reversals) charges, net (10,497) 34,500 51,249 Asset impairment charges 29,082 53,919 Gain on asset securitization (73) Extraordinary gain on early extinguishment of debt (3,049) Gain on sale of investment (3,739) Changes in operating assets and liabilities, net of effects from acquisitions and divestitures: Decrease (increase) in accounts receivable 68,807 77,133 (25,668) (Increase) decrease in inventories (3,089) 21,406 12,982 (Increase) decrease in prepaid expenses and other current assets (3,042) (1,525) 9,270 Increase (decrease) in accounts payable, deferred revenues and accrued expenses 5,163 (44,477) 49,955 Decrease in accrued shareholder litigation settlement (117,652) Decrease in accrued restructuring (20,943) (15,757) (21,471) Other 12,828 914 2,872 ----------------------------------------------------------------------------------------------------------------------------------- Net cash provided by operating activities of continuing operations 476,634 411,849 373,551 Gain from discontinued operations (2,142) (2,526) ----------------------------------------------------------------------------------------------------------------------------------- Net cash provided by operating activities 476,634 409,707 371,025 ----------------------------------------------------------------------------------------------------------------------------------- Cash Flows from Investing Activities Cost of companies acquired, net of cash acquired (2,666) (3,768) Expenditures for property and equipment (93,272) (85,880) (113,829) Expenditures for equipment on operating leases (85,568) (58,790) (45,160) Proceeds from sale of property and equipment 26,513 44,382 18,170 Proceeds from sale of equipment on operating leases 14,705 16,554 15,390 Finance receivables - additions (1,602,751) (1,815,282) (1,941,479) Finance receivables - collections 1,451,598 1,549,888 1,494,374 Proceeds from sale of finance subsidiaries' lease receivables 16,167 25,547 Repurchase of finance subsidiaries' lease receivables (275,000) Other (12,312) 5,267 6,050 ----------------------------------------------------------------------------------------------------------------------------------- Net cash used in investing activities (301,087) (330,360) (819,705) ----------------------------------------------------------------------------------------------------------------------------------- Cash Flows from Financing Activities Proceeds from issuance of long-term debt 2,596 38,105 35,340 Short-term (repayments) borrowings, net (178,647) 201,280 (470) Long-term debt repayments (14,728) (197,071) (51,257) Finance subsidiaries' debt - issuances 1,786,687 2,269,136 2,139,318 Finance subsidiaries' debt - repayments (1,582,501) (2,316,905) (1,484,237) Dividends paid (22,920) (22,695) (23,708) Decrease (increase) in restricted cash 12,288 (36,451) (62,289) Proceeds from option exercises and sale of treasury shares 6,603 3,942 215 Purchase of treasury shares and other (274) (7,876) (26,841) ----------------------------------------------------------------------------------------------------------------------------------- Net cash provided by (used in) financing activities 9,104 (68,535) 526,071 ----------------------------------------------------------------------------------------------------------------------------------- Effect of exchange rate changes on cash and cash equivalents 6,814 (8,579) (2,659) ----------------------------------------------------------------------------------------------------------------------------------- Net increase in cash and cash equivalents 191,465 2,233 74,732 Cash and cash equivalents at beginning of year 80,351 78,118 3,386 ----------------------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of year $ 271,816 $ 80,351 $ 78,118 -----------------------------------------------------------------------------------------------------------------------------------
The table below presents segment information for the fiscal years ended September 30, 2002, 2001 and 2000:
IKON North IKON Corporate and (unaudited) America Europe Other Eliminations Total ----------------------------------------------------------------------------------------------------------------------------------- Year Ended September 30, 2002 Net sales $ 2,050,205 $ 270,465 $ 11,079 $ 2,331,749 Services 1,923,182 155,818 41,832 2,120,832 Finance income 354,435 20,486 374,921 Finance interest expense 151,372 6,519 157,891 Restructuring reversal 8,050 64 1,796 $ 587 10,497 Operating income (loss) 467,431 23,139 (12,511) (184,470) 293,589 Interest expense (54,389) (54,389) Income before taxes 239,200 Year Ended September 30, 2001* Net sales 2,293,219 292,990 48,283 2,634,492 Services 1,991,304 141,154 146,808 2,279,266 Finance income 339,583 20,138 359,721 Finance interest expense 168,851 8,668 177,519 Restructuring and asset impairment charges (29,952) (1,264) (20,367) (11,999) (63,582) Operating income (loss) 354,325 22,214 (52,614) (186,756) 137,169 Interest expense (69,373) (69,373) Income before taxes 67,796 Year Ended September 30, 2000* Net sales 2,404,271 321,068 69,543 2,794,882 Services 2,035,656 145,309 146,218 2,327,183 Finance income 303,318 21,562 324,880 Finance interest expense 157,779 9,921 167,700 Restructuring and asset impairment charges (47,864) (5,681) (2,304) (49,319) (105,168) Shareholder litigation insurance proceeds 17,000 17,000 Operating income (loss) 370,894 18,596 (27,676) (213,899) 147,915 Gain on sale of investment 3,739 3,739 Interest expense (69,821) (69,821) Income before taxes 81,833 * In accordance with our adoption of SFAS 142 on October 1, 2001, goodwill is no longer being amortized. Goodwill amortization of $41,073 and $42,267 is included in operating income (loss) in the Corporate and Eliminations column for fiscal 2001 and 2000, respectively.