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52
BAKER HUGHES INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
(In millions) 2014 2013 2012
Cash flows from operating activities:
Net income $ 1,731 $ 1,103 $ 1,317
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization 1,814 1,698 1,568
Provision (benefit) for deferred income taxes (70) 1 (114)
Gain on disposal or deconsolidation of assets (297) (275) (222)
Stock-based compensation cost 122 115 115
Provision for doubtful accounts 102 75 100
Changes in operating assets and liabilities:
Accounts receivable (524) (453) 16
Inventories (259) (120) (547)
Accounts payable 291 845 (94)
Accrued employee compensation and other accrued liabilities 115 231 (90)
Income taxes payable 90 (31) (56)
Other operating items, net (162) (28) (158)
Net cash flows provided by operating activities 2,953 3,161 1,835
Cash flows from investing activities:
Expenditures for capital assets (1,791) (2,085) (2,910)
Proceeds from disposal of assets 437 455 389
Acquisition of businesses, net of cash acquired (314) (22) —
Other investing items, net 9 (11) —
Net cash flows used in investing activities (1,659) (1,663) (2,521)
Cash flows from financing activities:
Net (repayments) proceeds of commercial paper borrowings and other debt with
three months or less original maturity (216) (650) 764
Repayment of short-term debt with greater than three months original maturity (217) (163) (92)
Proceeds of short-term debt with greater than three months original maturity 185 242 175
Repurchase of common stock (600) (350) —
Proceeds from issuance of common stock 216 101 81
Dividends paid (279) (267) (263)
Other financing items, net (28) (16) (19)
Net cash flows (used in) provided by financing activities (939) (1,103) 646
Effect of foreign exchange rate changes on cash and cash equivalents (14) (11) 5
Increase (decrease) in cash and cash equivalents 341 384 (35)
Cash and cash equivalents, beginning of period 1,399 1,015 1,050
Cash and cash equivalents, end of period $ 1,740 $ 1,399 $ 1,015
Supplemental cash flows disclosures:
Income taxes paid, net of refunds $ 881 $ 651 $ 941
Interest paid $ 250 $ 247 $ 241
Supplemental disclosure of noncash investing activities:
Capital expenditures included in accounts payable $ 171 $ 142 $ 140
See Notes to Consolidated Financial Statements