Consolidated statement of cash flows (audited)
| ($ in millions) | |||
| For the Year Ended December 31: | 2007 | 2006 | 2005 |
|---|---|---|---|
|
* Reclassified to conform with 2007 presentation combining Pension assets and Pension liabilities into one caption—Retirement related. ** Reclassified to conform with 2007 presentation to combine Other than temporary declines in securities and other investments and the Other assets/other liabilities into one caption. *** See note A, “Consolidated Statement of Cash Flows,” for additional information. + Reclassified to conform with 2007 presentation of the new Common stock repurchases and Common stock transactions—other previously combined in Common stock transactions—net. ++ Reclassified to conform with 2007 presentation of disclosing interest paid on debt versus total interest paid including net investment hedging activity. +++ Lenovo equity valued at $542 million net of lock-up provisions of $112 million. See note C, “Acquisitions/Divestitures,” for additional information. The accompanying notes are an integral part of the financial statements. |
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| Cash Flow from Operating Activities from Continuing Operations: | |||
| Net income | $ 10,418 | $ 9,492 | $ 7,934 |
| Loss/(income) from discontinued operations | (00) | (76) | 24 |
| Adjustments to reconcile income from continuing operations to cash provided by operating activities: | |||
| Depreciation | 4,038 | 3,907 | 4,147 |
| Amortization of intangibles | 1,163 | 1,076 | 1,041 |
| Stock-based compensation | 713 | 846 | 1,043 |
| Deferred income taxes | 740 | 1,724 | 2,185 |
| Net gain on asset sales and other | (89) | (175) | (1,525) |
| Change in operating assets and liabilities, net of acquisitions/divestitures: | |||
| Receivables (including financing receivables) | (1,408) | (512) | 2,219 |
| Retirement related | (228) | (850)* | (1,728)* |
| Inventories | 182 | 112 | 202 |
| Other assets/other liabilities | 706 | (881)** | (91)** |
| Accounts payable | (142) | 355 | (536) |
| Net Cash Provided by Operating Activities from Continuing Operations | 16,094 | 15,019 | 14,914 |
| Cash Flow from Investing Activities from Continuing Operations: | |||
| Payments for plant, rental machines and other property | (4,630) | (4,362) | (3,842) |
| Proceeds from disposition of plant, rental machines and other property | 537 | 430 | 1,107 |
| Investment in software | (875) | (804) | (792) |
| Purchases of marketable securities and other investments | (30,449) | (28,555) | (4,526) |
| Proceeds from disposition of marketable securities and other investments | 31,441 | 25,542 | 4,180 |
| Divestiture of businesses, net of cash transferred | 310 | — | 932 |
| Acquisition of businesses, net of cash acquired | (1,009) | (3,799) | (1,482) |
| Net Cash Used in Investing Activities from Continuing Operations | (4,675) | (11,549) | (4,423) |
| Cash Flow from Financing Activities from Continuing Operations: | |||
| Proceeds from new debt*** | 21,744 | 1,444 | 4,363 |
| Short-term borrowings/(repayments) less than 90 days—net | 1,674 | 1,834 | (232) |
| Payments to settle debt*** | (11,306) | (3,400) | (3,522) |
| Common stock repurchases+ | (18,828) | (8,084) | (7,739) |
| Common stock transactions—other+ | 4,123 | 1,685 | 1,233 |
| Cash dividends paid | (2,147) | (1,683) | (1,250) |
| Net Cash Used in Financing Activities from Continuing Operations | (4,740) | (8,204) | (7,147) |
| Effect of exchange rate changes on cash and cash equivalents | 294 | 201 | (789) |
| Net cash used in discontinued operations from: Operating activities | (5) | (12) | (40) |
| Net change in cash and cash equivalents | 6,969 | (4,546) | 2,515 |
| Cash and cash equivalents at January 1 | 8,022 | 12,568 | 10,053 |
| Cash and Cash Equivalents at December 31 | $ 14,991 | $ 8,022 | $ 12,568 |
| Supplemental Data: | |||
| Income taxes paid—net of refunds received | $ 2,608 | $ 2,068 | $ 1,994 |
| Interest paid on debt | $ 1,485 | $ 1,202++ | $ 973++ |
| Capital lease obligations | $ 57 | $ 36 | $ 287 |
| Equity securities received as divestiture consideration+++ | $ — | $ — | $ 430 |
