Cisco 2007 Annual Report Download - page 44

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2007 Annual Report 47
Consolidated Statements of Cash Flows
(in millions)
Years Ended July 28, 2007 July 29, 2006 July 30, 2005
Cash flows from operating activities:
Net income $ 7,333 $ 5,580 $ 5,741
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 1,413 1,293 1,020
Employee share-based compensation expense 931 1,050 —
Share-based compensation expense related to acquisitions and investments 34 87 154
Provision for doubtful accounts 6 24 —
Deferred income taxes (622) (343) 55
Tax benefits from employee stock option plans — — 35
Excess tax benefits from share-based compensation (918) (432) —
In-process research and development 81 91 26
Net gains and impairment charges on investments (210) (124) (95)
Other — 31 —
Change in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable (597) (913) (373)
Inventories 61 121 (84)
Prepaid expenses and other current assets (452) (300) (58)
Lease receivables, net (156) (171) (163)
Accounts payable (107) (43) 62
Income taxes payable 1,104 743 947
Accrued compensation 479 150 (154)
Deferred revenue 1,293 575 541
Other liabilities 431 480 (86)
Net cash provided by operating activities 10,104 7,899 7,568
Cash flows from investing activities:
Purchases of investments (20,532) (21,732) (20,314)
Proceeds from sales and maturities of investments 17,368 18,480 24,630
Acquisition of property and equipment (1,251) (772) (692)
Acquisition of businesses, net of cash and cash equivalents acquired (3,684) (5,399) (911)
Change in investments in privately held companies (92) (186) (171)
Purchase of minority interest of Cisco Systems, K.K. (Japan) — (25) (34)
Other (151) (10) 106
Net cash (used in) provided by investing activities (8,342) (9,644) 2,614
Cash flows from financing activities:
Issuance of common stock 5,306 1,682 1,087
Repurchase of common stock (7,681) (8,295) (10,235)
Issuance of debt — 6,481 —
Excess tax benefits from share-based compensation 918 432 —
Other 126 — (14)
Net cash (used in) provided by financing activities (1,331) 300 (9,162)
Net increase (decrease) in cash and cash equivalents 431 (1,445) 1,020
Cash and cash equivalents, beginning of fiscal year 3,297 4,742 3,722
Cash and cash equivalents, end of fiscal year $ 3,728 $ 3,297 $ 4,742
See Notes to Consolidated Financial Statements.