CONSOLIDATED STATEMENTS OF CASH FLOWS
| Year Ended December 31, | ||||||||||||
| (in millions) | 2007 | 2006 | 2005 | |||||||||
|
Cash Flows from Operating Activities: |
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|
Net income |
$ | 1,135 | $ | 1,210 | $ | 978 | ||||||
|
Adjustments required to reconcile net income to cash flows from operating activities: |
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|
Depreciation and amortization |
656 | 636 | 641 | |||||||||
|
Provisions for receivables and inventory |
197 | 145 | 107 | |||||||||
|
Deferred tax expense (benefit) |
224 | 99 | (15 | ) | ||||||||
|
Net gain on sales of businesses and assets |
(7 | ) | (44 | ) | (97 | ) | ||||||
|
Undistributed equity in net income of unconsolidated affiliates |
(60 | ) | (70 | ) | (54 | ) | ||||||
|
Stock-based compensation |
89 | 64 | 40 | |||||||||
|
Restructuring and asset impairment charges |
(6 | ) | 385 | 366 | ||||||||
|
Cash payments for restructurings |
(235 | ) | (265 | ) | (214 | ) | ||||||
|
Contributions to pension benefit plans |
(298 | ) | (355 | ) | (388 | ) | ||||||
|
(Increase) decrease in inventories |
(43 | ) | 11 | (162 | ) | |||||||
|
Increase in equipment on operating leases |
(331 | ) | (271 | ) | (248 | ) | ||||||
|
Decrease in finance receivables |
119 | 192 | 254 | |||||||||
|
Increase in accounts receivable and billed portion of finance receivables |
(79 | ) | (30 | ) | (34 | ) | ||||||
|
Decrease in other current and long-term assets |
130 | 64 | 160 | |||||||||
|
Increase in accounts payable and accrued compensation |
285 | 330 | 313 | |||||||||
|
Net change in income tax assets and liabilities |
73 | (459 | ) | (211 | ) | |||||||
|
Net change in derivative assets and liabilities |
(10 | ) | 9 | 38 | ||||||||
|
Increase (decrease) in other current and long-term liabilities |
38 | (70 | ) | 7 | ||||||||
|
Other, net |
(6 | ) | 36 | (61 | ) | |||||||
|
Net cash provided by operating activities |
1,871 | 1,617 | 1,420 | |||||||||
|
Cash Flows from Investing Activities: |
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|
Purchases of short-term investments |
(18 | ) | (162 | ) | (386 | ) | ||||||
|
Proceeds from sales of short-term investments |
155 | 269 | 139 | |||||||||
|
Cost of additions to land, buildings and equipment |
(236 | ) | (215 | ) | (181 | ) | ||||||
|
Proceeds from sales of land, buildings and equipment |
25 | 82 | 5 | |||||||||
|
Cost of additions to internal use software |
(123 | ) | (79 | ) | (56 | ) | ||||||
|
Proceeds from divestitures and investments, net |
– | 153 | 105 | |||||||||
|
Acquisitions, net of cash acquired |
(1,615 | ) | (229 | ) | (1 | ) | ||||||
|
Net change in escrow and other restricted investments |
200 | 38 | 80 | |||||||||
|
Net cash used in investing activities |
(1,612 | ) | (143 | ) | (295 | ) | ||||||
|
Cash Flows from Financing Activities: |
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|
Cash proceeds from new secured financings |
62 | 121 | 557 | |||||||||
|
Debt payments on secured financings |
(1,931 | ) | (1,712 | ) | (1,879 | ) | ||||||
|
Net cash proceeds (payments) on other debt |
1,814 | 1,276 | (1,187 | ) | ||||||||
|
Payment of liability to subsidiary trust issuing preferred securities |
– | (100 | ) | – | ||||||||
|
Preferred stock dividends |
– | (43 | ) | (58 | ) | |||||||
|
Proceeds from issuances of common stock |
65 | 82 | 40 | |||||||||
|
Excess tax benefits from stock-based compensation |
22 | 25 | – | |||||||||
|
Payments to acquire treasury stock, including fees |
(632 | ) | (1,069 | ) | (433 | ) | ||||||
|
Other |
(19 | ) | (8 | ) | (2 | ) | ||||||
|
Net cash used in financing activities |
(619 | ) | (1,428 | ) | (2,962 | ) | ||||||
|
Effect of exchange rate changes on cash and cash equivalents |
60 | 31 | (59 | ) | ||||||||
|
(Decrease) increase in cash and cash equivalents |
(300 | ) | 77 | (1,896 | ) | |||||||
|
Cash and cash equivalents at beginning of year |
1,399 | 1,322 | 3,218 | |||||||||
|
Cash and cash equivalents at end of year |
$ | 1,099 | $ | 1,399 | $ | 1,322 | ||||||
The accompanying notes are an integral part of these Consolidated Financial Statements.
