EMC 2010 Annual Report Download - page 47

Table of Contents
EMC CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Year Ended December 31,
2010 2009 2008
Cash flows from operating activities:
Cash received from customers $ 17,585,447 $ 14,647,691 $ 15,378,081
Cash paid to suppliers and employees (12,830,684) (11,032,859) (11,747,031)
Dividends and interest received 102,912 109,525 240,031
Interest paid (76,711) (73,430) (73,695)
Income taxes paid (232,121) (316,542) (232,298)
Net cash provided by operating activities 4,548,843 3,334,385 3,565,088
Cash flows from investing activities:
Additions to property, plant and equipment (745,412) (411,579) (695,899)
Capitalized software development costs (362,956) (304,520) (294,973)
Purchases of short- and long-term available-for-sale securities (6,321,535) (5,409,540) (3,318,545)
Sales of short- and long-term available-for-sale securities 3,625,260 5,171,449 3,189,547
Maturities of short- and long-term available-for-sale securities 437,297 704,653 204,091
Business acquisitions, net of cash acquired (3,194,611) (2,664,141) (725,521)
Decrease (increase) in strategic and other related investments 85,908 (182,994) (5,510)
Other — 1,184 31,878
Net cash used in investing activities (6,476,049) (3,095,488) (1,614,932)
Cash flows from financing activities:
Issuance of EMC's common stock 780,732 366,361 241,060
Issuance of VMware's common stock from the exercise of stock options 431,306 227,666 190,107
Repurchase of EMC's common stock (999,924) — (1,489,501)
Purchase of VMware's common stock (399,224) — (13,259)
VMware repurchase of VMware's common stock (338,527) — —
Proceeds from securities lending — — 412,321
Repayments of proceeds from securities lending — (412,321) —
Excess tax benefits from stock-based compensation 281,872 46,082 97,705
Payment of long-term and short-term obligations (4,128) (20,835) (6,151)
Proceeds from long-term and short-term obligations 4,066 4,969 33,707
Net cash (used in) provided by financing activities (243,827) 211,922 (534,011)
Effect of exchange rate changes on cash (12,328) 7,995 (54,671)
Net (decrease) increase in cash and cash equivalents (2,183,361) 458,814 1,361,474
Cash and cash equivalents at beginning of year 6,302,499 5,843,685 4,482,211
Cash and cash equivalents at end of year $ 4,119,138 $ 6,302,499 $ 5,843,685
Reconciliation of net income to net cash provided by operating activities:
Net income $ 1,969,686 $ 1,121,801 $ 1,319,829
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 1,167,550 1,073,135 1,057,511
Non-cash interest expense on convertible debt 105,649 108,347 102,581
Non-cash restructuring and other special charges 6,861 25,050 139,193
Stock-based compensation expense 667,728 600,537 501,439
Provision for doubtful accounts 18,965 14,351 34,667
Deferred income taxes, net (49,787) 27,198 4,629
Excess tax benefits from stock-based compensation (281,872) (46,082) (97,705)
Gain on Data Domain and SpringSource common stock — (25,822) —
Other (21,250) (13,906) (13,471)
Changes in assets and liabilities, net of acquisitions:
Accounts and notes receivable (405,758) 241,069 73,184
Inventories (114,111) (158,482) 165,813
Other assets (54,469) 3,600 (16,178)
Accounts payable 154,496 140,376 (148,821)
Accrued expenses 4,162 (80,642) 8,688
Income taxes payable 455,964 (91,142) 44,821
Deferred revenue 957,114 366,361 394,067
Other liabilities (32,085) 28,636 (5,159)
Net cash provided by operating activities $ 4,548,843 $ 3,334,385 $ 3,565,088
Non-cash investing and financing activity:
Issuance of common stock and stock options exchanged in business acquisitions $ 28,668 $ 83,780 $ 4,057