SCHN 2017 Annual Report

57 / Schnitzer Steel Industries, Inc. Form 10-K 2017 SCHNITZER STEEL INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year Ended August 31, 2017 2016 2015 Cash flows from operating activities: Net income (loss) $ 46,978 $ (17,588) $ (195,076) Adjustments to reconcile net income (loss) to cash provided by operating activities: Goodwill impairment charges — 8,845 141,021 Other asset impairment charges (recoveries), net (717) 20,682 45,119 Exit-related (gains), asset impairments and accelerated depreciation, net (407) 1,790 6,502 Depreciation and amortization 49,840 54,630 67,936 Inventory write-downs — 710 3,031 Deferred income taxes 2,278 507 (1,988) Undistributed equity in earnings of joint ventures (3,674) (819) (1,490) Share-based compensation expense 10,847 10,437 10,481 Loss (gain) on the disposal of assets 448 (465) (2,875) Unrealized foreign exchange (gain) loss, net 361 (109) (1,909) Bad debt expense (recoveries), net 126 131 (264) Write-off of debt issuance costs — 768 — Excess tax benefit from share-based payment arrangements — — (343) Changes in assets and liabilities, net of acquisitions: Accounts receivable (36,195) (10,693) 55,600 Inventories (22,207) 27,504 69,256 Income taxes (1,086) 5,861 (5,846) Prepaid expenses and other current assets (1,704) (1,864) 2,403 Other long-term assets 537 266 1,064 Accounts payable 33,062 (763) (35,638) Accrued payroll and related liabilities 12,389 3,633 (6,330) Other accrued liabilities 5,073 (4,362) (2,710) Environmental liabilities 1,884 (451) (702) Other long-term liabilities (1,101) 30 (3,384) Distributed equity in earnings of joint ventures 3,638 560 770 Net cash provided by operating activities 100,370 99,240 144,628 Cash flows from investing activities: Capital expenditures (44,940) (34,571) (32,297) Purchase of cost method investment (6,017) — — Acquisitions, net of cash acquired — — (150) Joint venture receipts (payments), net 405 (11) (1) Proceeds from sale of assets 5,158 4,106 4,270 Net cash used in investing activities (45,394) (30,476) (28,178) Cash flows from financing activities: Borrowings from long-term debt 433,336 152,311 140,536 Repayment of long-term debt (481,757) (187,951) (231,103) Proceeds from line of credit — 135,500 266,500 Repayment of line of credit — (135,500) (266,500) Payment of debt issuance costs (112) (1,011) (978) Repurchase of Class A common stock — (3,479) (1,347) Taxes paid related to net share settlement of share-based payment arrangements (3,474) (2,213) (1,997) Excess tax benefit from share-based payment arrangements — — 343 Distributions to noncontrolling interests (2,271) (2,126) (3,110) Contingent consideration paid relating to business acquisitions — — (759) Dividends paid (20,396) (20,444) (20,336) Net cash used in financing activities (74,674) (64,913) (118,751) Effect of exchange rate changes on cash 166 213 (616) Net increase (decrease) in cash and cash equivalents (19,532) 4,064 (2,917) Cash and cash equivalents as of beginning of year 26,819 22,755 25,672 Cash and cash equivalents as of end of year $ 7,287 $ 26,819 $ 22,755