CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) 2001 STRATTEC Annual Report 16 The accompanying notes are an integral part of these consolidated statements. Fiscal Years Ended July 1, 2001 July 2, 2000  June 27, 1999 CASH FLOWS FROM OPERATING ACTIVITIES Net income $13,026 $18,513 $17,015) Adjustments to reconcile net income to  net cash provided by operating activities: Depreciation 7,939 7,576 7,107) Loss on disposition of property,  plant and equipment 201 254 463) Deferred taxes (312) 392 (7) Change in operating assets and liabilities: (Increase) decrease in receivables  1,639 7,294 (10,788) (Increase) decrease in inventories 5,737 (538) 1,158 (Increase) decrease in other assets 960 (1,284) 4,510 Increase (decrease) in accounts payable and accrued liabilities (6,830) 2,957 8,156 Tax benefit from options exercised 436 1,109) 415 Other, net 439 (260) (91) ) ) Net cash provided by  operating activities 23,235 36,013 27,938) ) ) ) CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment (7,548) (9,357) (8,831) Proceeds received on sale of property, plant and equipment 88 7 15) ) ) ) Net cash used in investing activities (7,460) (9,350) (8,816) ) ) ) CASH FLOWS FROM FINANCING ACTIVITIES Purchase of common stock (15,620) (44,230) (6,416)- Exercise of stock options 1,228 2,871 1,151) ) ) ) Net cash used in financing activities (14,392) (41,359)) (5,(5,265) ) ) )) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,383 (14,696) 13,857 CASH AND CASH EQUIVALENTS Beginning of year 13,915 28,611 14,754) ) ) ) End of year $15,298 $13,915 $28,611 ) ) ) SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Income taxes paid $7,101 $10,880 $9,882) Interest paid - -) -