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Management's Discussion and Analysis
CONSOLIDATED CASH FLOWS
1998 vs. 1997
The acquisitions and investments in unconsolidated affiliates include the purchases of Tropicana, the remaining ownership interest in various bottlers, TSSC and various other international salty snack food businesses.
1997 vs. 1996
The net cash flow provided by discontinued operations increased $5.6 billion in 1997. The significant increase primarily reflects a $4.5 billion cash distribution received from TRICON just prior to the restaurant spin-off. In addition, the increase reflects after-tax cash proceeds of $1.0 billion associated with the sale of PFS and the non-core U.S. restaurant businesses, the effects of refranchising restaurants and other operating activities.
Share Repurchases
At December 26, 1998, 73.2 million shares remain available under the current repurchase authority granted by our Board of Directors.
Our 1998 consolidated cash and cash equivalents decreased $1.6 billion compared to a $1.6 billion increase in 1997. Excluding cash provided by discontinued operations in 1997, the decrease in cash and cash equivalents was $1.6 billion in 1998 compared with a $4.6 billion decrease in 1997. The change in cash flow primarily reflects net proceeds from issuance of debt and the liquidation of investment portfolios in 1998 compared to net debt repayments in 1997. These cash inflows were primarily used to fund acquisitions and investments in unconsolidated affiliates during the year.
Our 1997 consolidated cash and cash equivalents increased $1.6 billion over the prior year reflecting a significant increase in cash provided by discontinued operations which was used to reduce debt, increase our investment portfolios and repurchase shares.
Our share repurchase activity was as follows:
($ in millions)
1998
.
1997
1996
Cost
$
2,230
.
$
2,459
$
1,651
Shares repurchased
.
Number of shares
59.2
.
69.0
54.2
% of shares outstanding at
.
beginning of year
3.9
%
4.5
%
3.4
%