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Table 3
Watson Pharmaceuticals, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited; in thousands)
Six Months Ended
June 30,
2008 2007
Cash Flows from Operating Activities:
Net income $110,932 $68,021
Reconciliation to net cash provided
by operating activities:
Depreciation and amortization 84,508 125,613
Deferred income tax provision 17,363 (20,188)
Provision for inventory reserve 22,231 26,946
Restricted stock and stock option
compensation 9,256 6,910
Other adjustments (7,230) 2,034
Changes in assets and liabilities:
Accounts receivable, net (30,054) 86,090
Inventories (22,331) (67,980)
Accounts payable and accrued expense (18,912) (76,366)
Income taxes payable 5,145 18,058
Other assets and liabilities (4,722) 30,104
Total adjustments 55,254 131,221
Net cash provided by operating
activities 166,186 199,242
Cash Flows from Investing Activities:
Additions to property, equipment and
product rights (29,504) (35,
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