AT&T Uverse 2007 Annual Report Download - page 57

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2007 AT&T Annual Report
| 55
Consolidated Statements of Cash Flows
Dollars in millions, increase (decrease) in cash and cash equivalents
2007 2006 2005
Operating Activities
Net income $ 11,951 $ 7,356 $ 4,786
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 21,577 9,907 7,643
Undistributed earnings from investments in equity affiliates (297) (1,946) (451)
Provision for uncollectible accounts 1,617 586 744
Amortization of investment tax credits (31) (28) (21)
Deferred income tax benefit (240) (87) (658)
Net gain on sales of investments (11) (10) (135)
Gain on license exchange (409) — —
Changes in operating assets and liabilities:
Accounts receivable (1,491) 519 (94)
Other current assets (1,020) 30 34
Accounts payable and accrued liabilities 672 (2,213) 74
Stock-based compensation tax benefit (173) (18) (3)
Other – net 1,927 1,519 1,055
Total adjustments 22,121 8,259 8,188
Net Cash Provided by Operating Activities 34,072 15,615 12,974
Investing Activities
Construction and capital expenditures (17,717) (8,320) (5,576)
Net investments in affiliates — (1,104) 2,436
Dispositions 1,594 756 526
Acquisitions, net of cash acquired (2,873) 368 1,504
Proceeds from sale of marketable securities 471 — —
Proceeds from sale of debt and equity securities 562 — —
Investments in debt and equity securities (579) — —
Maturities of held-to-maturity securities — — 99
Proceeds from note repayment — — 37
Other 36 7 —
Net Cash Used in Investing Activities (18,506) (8,293) (974)
Financing Activities
Net change in short-term borrowings with original maturities of three months or less (3,411) 3,649 (4,119)
Issuance of long-term debt 11,367 1,491 1,973
Repayment of long-term debt (6,772) (4,242) (2,682)
Purchase of treasury shares (10,390) (2,678) (1,843)
Issuance of treasury shares 1,986 589 432
Repurchase of preferred shares of subsidiaries — — (728)
Dividends paid (8,743) (5,153) (4,256)
Stock-based compensation tax benefit 173 18 3
Other (224) 198 (6)
Net Cash Used in Financing Activities (16,014) (6,128) (11,226)
Net increase (decrease) in cash and cash equivalents from continuing operations (448) 1,194 774
Net Cash Used in Operating Activities From Discontinued Operations — — (310)
Net increase (decrease) in cash and cash equivalents (448) 1,194 464
Cash and cash equivalents beginning of year 2,418 1,224 760
Cash and Cash Equivalents End of Year $ 1,970 $ 2,418 $ 1,224
The accompanying notes are an integral part of the consolidated financial statements.