34 Hormel Foods Corporation See notes to consolidated financial statements. Fiscal Year Ended (In Thousands) October 30, 2004  October 25, 2003 October 26, 2002 Operating Activities Net earnings $ 231,663 $ 185,779  $ 189,322  Adjustments to reconcile to net cash provided by operating activities: Depreciation 87,675 83,374 82,240 Amortization of intangibles 7,070 4,646 998 Equity in earnings of affiliates (5,884) (5,000) (6,799) Provision for deferred income taxes (15,654) (4,592) 3,052  (Gain) loss on property/equipment sales and plant facilities (432) 2,519 619 Gain on sales of business and investment (24,285) 0 0 Changes in operating assets and liabilities net of acquisitions: Decrease (increase) in accounts receivable 14,803 (10,636) 32,655  (Increase) decrease in inventories, prepaid expenses,  and other current assets (28,964) (24,303) 9,250  Increase in accounts payable and accrued expenses 23,772 17,697 15,524 Other 4,966 3,766 0 Net Cash Provided by Operating Activities 294,730 253,250 326,861 Investing Activities Sale of held-to-maturity securities 3,120 0 20,000 Purchase of held-to-maturity securities (3,250) 0 (20,000) Acquisitions of businesses (21,452) (240,970) (476) Purchases of property/equipment (80,363) (67,104) (64,465) Proceeds from sales of property/equipment 2,903 5,085 9,800 Proceeds from sales of business and investment 126,774 0 0 (Increase) in investments, equity in affiliates and other assets (9,413) (91,291) (7,575) Dividends from affiliates 0 0 2,104 Net Cash Provided by (Used In) Investing Activities 18,319 (394,280) (60,612) Financing Activities Proceeds from short-term debt 0 60,000 0 Principal payments on short-term debt 0 (60,000) 0  Proceeds from long-term debt 0 42 3,263 Principal payments on long-term debt (32,298) (13,942) (84,504) Dividends paid on common stock (61,343) (57,092) (53,437) Share repurchase (37,525) (6,119) (10,762) Other 9,022 6,554 2,478 Net Cash Used in Financing Activities (122,144) (70,557) (142,962) Increase (Decrease) in Cash and Cash Equivalents 190,905 (211,587) 123,287  Cash and cash equivalents at beginning of year 97,976 309,563 186,276 Cash and Cash Equivalents at End of Year $ 288,881  $ 97,976  $ 309,563 consolidated statements of cash flows