This excerpt taken from the UVV 10-Q filed Feb 7, 2008.
During the nine months ended December 31, 2007, we invested about $18 million in fixed assets, which was $13 million less than our depreciation expense of $31 million. Our intent is to limit routine capital spending to a level below depreciation expense in order to maintain strong cash flow. Through the third quarter last year, capital spending was about $21 million. Depreciation expense was lower in the current fiscal year, primarily because of the sale of certain assets and the closure of others in fiscal year 2007.
In addition, during the quarter, our Italian subsidiary deposited 22 million (about $32 million) in additional funds as collateral for a bank guarantee to the European Commission in order to stay execution during the appeal process of fines imposed in 2005. Those fines are more fully described in Note 3 of Notes to Consolidated Financial Statements. The total cash deposit of 30 million (about $44 million) secured the bank guarantee and is classified as a non-current asset.