Hydro Annual Report 2011b

Consolidated statements of cash flows
Amounts in NOK million. Years ended December 31 Notes 2011 2010
Operating activities
Net income 6 749 2 118
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and impairment 7, 12, 13 6 158 2 985
Share of loss in equity accounted investments 7, 25, 26 260 606
Dividends received from equity accounted investments 25, 26 99 108
Deferred taxes (103) (64)
Gain on sale of non­current assets (5 328) (49)
Loss (gain) on foreign currency transactions 16 971 (513)
Net sales (purchases) of trading securities (16) 233
Capitalized interest 16 (1) (5)
Changes in assets and liabilities that provided (used) cash:
Accounts receivable 445 (1 693)
Inventories (1 158) (1 176)
Trade and other payables 759 311
Financial and commodity derivatives (357) 2 003
Other items (1 201) 1 499
Net cash provided by operating activities 42 7 277 6 363
Investing activities
Purchases of property, plant and equipment (3 841) (2 138)
Purchases of other long­term investments (6 328) (3 918)
Proceeds from sales of property, plant and equipment 110 23
Proceeds from sales of other long­term investments 1 295 (18)
Net cash used in investing activities (8 764) (6 051)
Financing activities
Loan proceeds 3 668 3 167
Principal repayments (2 880) (4 056)
Net increase (decrease) in other short­term debt 146 (180)
Proceeds from shares issued 88 9 910
Dividends paid (1 781) (866)
Net cash provided by (used in) financing activities (759) 7 975
Foreign currency effects on cash and bank overdraft (145) (51)
Net increase (decrease) in cash, cash equivalents and bank overdraft (2 391) 8 236
Cash, cash equivalents and bank overdraft at beginning of year 10 735 2 499
Cash, cash equivalents and bank overdraft at end of year 42 8 344 10 735
The accompanying notes are an integral part of the consolidated financial statements.
FINANCIAL STATEMENTS
Consolidated statements of cash flows F5