Consolidated Statements of Cash Flows
| Year Ended December 31, | ||||||||||||
|
(in millions) |
2008 | 2007 | 2006 | |||||||||
|
Cash Flows from Operating Activities: |
||||||||||||
|
Net income |
$ | 230 | $ | 1,135 | $ | 1,210 | ||||||
|
Adjustments required to reconcile net income to cash flows from operating activities: |
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|
Depreciation and amortization |
669 | 656 | 636 | |||||||||
|
Provisions for receivables and inventory |
314 | 197 | 145 | |||||||||
|
Deferred tax (benefit) expense |
(324 | ) | 224 | 99 | ||||||||
|
Net gain on sales of businesses and assets |
(21 | ) | (7 | ) | (44 | ) | ||||||
|
Undistributed equity in net income of unconsolidated affiliates |
(53 | ) | (60 | ) | (70 | ) | ||||||
|
Stock-based compensation |
85 | 89 | 64 | |||||||||
|
Provision for litigation, net |
781 | — | — | |||||||||
|
Payments for securities litigation, net |
(615 | ) | — | — | ||||||||
|
Restructuring and asset impairment charges |
429 | (6 | ) | 385 | ||||||||
|
Payments for restructurings |
(131 | ) | (235 | ) | (265 | ) | ||||||
|
Contributions to pension benefit plans |
(299 | ) | (298 | ) | (355 | ) | ||||||
|
Decrease (increase) in accounts receivable and billed portion of finance receivables |
57 | (79 | ) | (30 | ) | |||||||
|
(Increase) decrease in inventories |
(114 | ) | (43 | ) | 11 | |||||||
|
Increase in equipment on operating leases |
(331 | ) | (331 | ) | (271 | ) | ||||||
|
Decrease in finance receivables |
164 | 119 | 192 | |||||||||
|
(Increase) decrease in other current and long-term assets |
(8 | ) | 130 | 64 | ||||||||
|
Increase in accounts payable and accrued compensation |
211 | 285 | 330 | |||||||||
|
(Decrease) increase in other current and long-term liabilities |
(174 | ) | 38 | (70 | ) | |||||||
|
Net change in income tax assets and liabilities |
(92 | ) | 73 | (459 | ) | |||||||
|
Net change in derivative assets and liabilities |
230 | (10 | ) | 9 | ||||||||
|
Other, net |
(69 | ) | (6 | ) | 36 | |||||||
|
Net cash provided by operating activities |
939 | 1,871 | 1,617 | |||||||||
|
Cash Flows from Investing Activities: |
||||||||||||
|
Cost of additions to land, buildings and equipment |
(206 | ) | (236 | ) | (215 | ) | ||||||
|
Proceeds from sales of land, buildings and equipment |
38 | 25 | 82 | |||||||||
|
Cost of additions to internal use software |
(129 | ) | (123 | ) | (79 | ) | ||||||
|
Acquisitions, net of cash acquired |
(155 | ) | (1,615 | ) | (229 | ) | ||||||
|
Net change in escrow and other restricted investments |
8 | 200 | 38 | |||||||||
|
Other, net |
3 | 137 | 260 | |||||||||
|
Net cash used in investing activities |
(441 | ) | (1,612 | ) | (143 | ) | ||||||
|
Cash Flows from Financing Activities: |
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|
Net debt payments on secured financings |
(227 | ) | (1,869 | ) | (1,591 | ) | ||||||
|
Net proceeds on other debt |
926 | 1,814 | 1,276 | |||||||||
|
Payment of liability to subsidiary trust issuing preferred securities |
— | — | (100 | ) | ||||||||
|
Common stock dividends |
(154 | ) | — | — | ||||||||
|
Preferred stock dividends |
— | — | (43 | ) | ||||||||
|
Proceeds from issuances of common stock |
6 | 65 | 82 | |||||||||
|
Excess tax benefits from stock-based compensation |
2 | 22 | 25 | |||||||||
|
Payments to acquire treasury stock, including fees |
(812 | ) | (632 | ) | (1,069 | ) | ||||||
|
Repurchases related to stock-based compensation |
(33 | ) | — | — | ||||||||
|
Other |
(19 | ) | (19 | ) | (8 | ) | ||||||
|
Net cash used in financing activities |
(311 | ) | (619 | ) | (1,428 | ) | ||||||
|
Effect of exchange rate changes on cash and cash equivalents |
(57 | ) | 60 | 31 | ||||||||
|
Increase (decrease) in cash and cash equivalents |
130 | (300 | ) | 77 | ||||||||
|
Cash and cash equivalents at beginning of year |
1,099 | 1,399 | 1,322 | |||||||||
|
Cash and cash equivalents at end of year |
$ | 1,229 | $ | 1,099 | $ | 1,399 | ||||||
The accompanying notes are an integral part of these Consolidated Financial Statements.