Baker Hughes 2009 Annual Report Download - page 114

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40 Baker Hughes Incorporated
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
(In millions) 2009 2008 2007
Cash flows from operating activities:
Net income $ 421 $ 1,635 $ 1,514
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization 711 637 521
(Gain) loss on investments (4) 25 –
Stock-based compensation costs 88 60 51
(Benefit) provision for deferred income taxes (256) (21) (4)
Gain on sale of product line – (28) –
Gain on disposal of assets (64) (101) (79)
Provision for doubtful accounts 94 31 22
Changes in operating assets and liabilities:
Accounts receivable 399 (515) (309)
Inventories 240 (371) (142)
Accounts payable (89) 242 26
Accrued employee compensation and other accrued liabilities (130) 90 (139)
Income taxes payable (169) 76 129
Income taxes paid on sale of interest in affiliate – – (125)
Liabilities for pensions and other postretirement benefits and other liabilities 13 (38) (4)
Other (15) (108) 14
Net cash flows from operations 1,239 1,614 1,475
Cash flows from investing activities:
Expenditures for capital assets (1,086) (1,303) (1,127)
Proceeds from disposal of property, plant and equipment 163 222 179
Proceeds from sale of businesses and interests in affiliates – 31 10
Acquisition of businesses, net of cash acquired (58) (120) –
Proceeds from sale of investments 15 – –
Purchase of short-term investments – – (2,521)
Proceeds from maturities of short-term investments – – 2,839
Net cash flows from investing activities (966) (1,170) (620)
Cash flows from financing activities:
Net (repayments) borrowings of commercial paper and other short-term debt (16) 15 14
Repayment of long-term debt (525) – –
Proceeds from issuance of long-term debt – 1,235 –
Proceeds from issuance of common stock 51 87 67
Repurchase of common stock – (627) (521)
Dividends (185) (173) (167)
Excess tax benefits from stock-based compensation – 4 14
Net cash flows from financing activities (675) 541 (593)
Effect of foreign exchange rate changes on cash 42 (84) 42
(Decrease) increase in cash and cash equivalents (360) 901 304
Cash and cash equivalents, beginning of year 1,955 1,054 750
Cash and cash equivalents, end of year $ 1,595 $ 1,955 $ 1,054
Supplemental cash flows disclosures:
Income taxes paid $ 604 $ 621 $ 717
Interest paid $ 154 $ 86 $ 76
Supplemental disclosure of noncash investing activities:
Capital expenditures included in accounts payable $ 29 $ 43 $ 40
See Notes to Consolidated Financial Statements