Consolidated Financial Statements

Consolidated statements of cash flows
For the years ended December 31, 2011 and 2010 (adjusted)
(In thousands of Mexican pesos)


    2011   2010
(as adjusted)
Operating activities:        
Income from continuing operations before income taxes $ 6,932,093 $ 6,964,637
Items related to investing activities:        
Depreciation and amortization   1,135,806   1,316,358
Gain on sale of shares of subsidiaries   -   (42,489)
Gain on sale of property, plant and equipment   (9,285)   (138,926)
Impairment of long-lived assets   -   82,498
Equity in income of associated companies   (731,752)   (1,034,536)
Current and deferred statutory employee profit sharing   213,996   205,790
Interest income   (521,156)   (658,978)
Items related to financing activities:        
Interest expense   1,068,580   1,009,972
Exchange loss from financing   331   (349,274)
Income from discontinued operations   174,368   2,269,142
Other items with no effect on cash:        
Estimates, provisions and other items   (1,283)   (50,035)
    8,261,698   9,574,159
(Increase) decrease in:        
Accounts and notes receivable   (249,708)   48,799
Inventories   (2,025,766)   (1,600,022)
Prepaid expenses   130,679   315,651
Other assets   (295,808)   (1,032,449)
Increase (decrease) in:        
Trade accounts payable   1,855,630   1,133,294
Direct employee benefits   (110,010)   (81,576)
Accrued expenses and taxes other than income taxes   2,161,499   (2,142,856)
Income taxes paid   (2,312,967)   (2,368,277)
Advances from customers   (243,269)   294,263
Due to related parties   (1,028,883)   3,146,574
Derivative financial instruments   475,660   825,510
Other liabilities   (43,466)   (57,410)
    (1,686,409)   (1,518,499)
Net cash flows from operating activities   6,575,289   8,055,660
         
Investing activities:        
(Acquisition) sale of held for trade financial instruments   (576,054)   141,447
Purchase of property, plant and equipment   (2,702,241)   (3,920,263)
Proceeds from sale of property, plant and equipment   1,359,750   715,359
Purchase of real state inventories   (2,500)   (24,015)
Discontinued operations   (612,016)   (456,677)
Investment in concessions   67,374   -
Sale of subsidiaries, net of cash disposed   523,416   42,489
Acquisition of subsidiaries   (500,389)   -
Dividends received   684,088   744,290
Decrease in non-controlling interest   -   (525)
Long-term accounts receivable   12,438,870   (12,487,829)
Spin-off effects   -   (4,013,606)
Interest received   521,156   654,578
Other items   127,444   (47,993)
Net cash flows from investing activities   11,328,898   (18,652,745)
         
Cash to be applied to (obtained from) financing activities   17,904,187   (10,597,085)
         
Financing activities:        
Borrowings   10,842,247   20,409,230
Repayment of loans received   (24,818,095)   (7,131,282)
Interest paid   (1,092,244)   (1,048,158)
Dividends paid   (1,270,821)   (1,657,767)
Repurchase of stock   (354,563)   (976,214)
Net cash flows from financing activities   (16,693,476)   (9,595,809)
         
Net increase (decrease) in cash and cash equivalents   1,210,711   (1,001,276)
         
Adjustment to cash flows due to exchange rate fluctuations   53,703  

(428,969)
         
Cash and cash equivalents at beginning of year   2,124,418  

3,554,663
         
Cash and cash equivalents at end of year $ 3,388,832 $ 2,124,418