2012 Business Overview

Consolidated Statements of Cash Flows

For the years ended December 31 (In thousands) 2012 2011 2010

Cash flows from operating activities

Net earnings $113,844 $126,389 $102,180
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization $93,896 $88,300 $79,946
(Gain) loss on fixed asset disposals (414) (670) 1,446
Gain on bargain purchase (910)
Gain on divestiture (29,912) (1,298)
Deferred income taxes (3,871) 3,345 2,828
Share-based compensation 9,428 9,621 13,378
Impairment of assets 4,988
Changes in operating assets and liabilities, net of businesses acquired and disposed of:
Accounts receivable, net 26,524 (78,850) (53,979)
Inventories, net (30,100) (21,123) 11,401
Progress payments (7,923) 11,264 6,493
Accounts payable and accrued expenses (7,290) 15,628 9,925
Deferred revenue (34,436) 51,724 (20,734)
Income taxes 15,211 3,917 (1,122)
Net pension and post-retirement liabilities (1,132) (4,234) 24,528
Other current and long-term assets and liabilities 4,571 (2,160) (4,791)
Net cash provided by operating activities $152,474 $201,853 $171,499

Cash flows from investing activities

Proceeds from sales and disposals of long-lived assets $2,557 $2,497 $744
Proceeds from divestitures 52,123 8,100
Acquisitions of intangible assets (1,761) (22) (1,608)
Additions to property, plant, and equipment (82,954) (84,322) (52,769)
Acquisition of businesses, net of cash acquired (460,439) (178,080) (42,200)
Additional consideration paid on prior year acquisitions (2,524)
Net cash used for investing activities $(492,998) $(251,827) $(95,833)

Cash flows from financing activities

Borrowings of debt $576,934 $1,302,600 $513,100
Principal payments on debt (296,145) (1,112,814) (581,771)
Repurchases of company stock (25,705) (8,178)
Proceeds from share-based compensation plans 15,492 11,746 10,560
Dividends paid (16,392) (14,893) (14,729)
Excess tax benefits from share-based compensation 57 1,343 985
Net cash provided by (used for) financing activities $254,241 $179,804 $(71,855)
Effect of exchange-rate changes on cash 3,919 (3,562) (702)
Net increase (decrease) in cash and cash equivalents (82,364) 126,268 3,109
Cash and cash equivalents at beginning of year 194,387 68,119 65,010
Cash and cash equivalents at end of year $112,023 $194,387 $68,119

Supplemental disclosure of non-cash activities

Capital expenditures incurred but not yet paid $1,478 $3,600 $2,459
Recognition of asset retirement obligation $6,904