HP 2006 Annual Report Download - page 80

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the fiscal years ended October 31
2006 2005 2004
In millions
Cash flows from operating activities:
Net earnings ....................................... $ 6,198 $ 2,398 $ 3,497
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation and amortization ........................ 2,353 2,344 2,395
Stock-based compensation expense ..................... 536 104 48
Provision (benefit) for doubtful accounts—accounts and
financing receivables .............................. 4 (22) 98
Provision for inventory .............................. 267 398 367
Restructuring charges .............................. 158 1,684 114
Pension curtailment gain ............................ — (199) —
Acquisition-related charges, including in-process research and
development ................................... 52 2 91
Deferred taxes on earnings ........................... 693 (162) 26
Excess tax benefit from stock-based compensation .......... (251) — —
Other, net ....................................... (7) (69) 61
Changes in assets and liabilities:
Accounts and financing receivables ................... (882) 666 (696)
Inventory ...................................... (1,109) (208) (1,341)
Accounts payable ................................ 1,879 846 3
Taxes on earnings ................................ (513) 748 (32)
Restructuring ................................... (810) (247) (601)
Other assets and liabilities ......................... 2,785 (255) 1,058
Net cash provided by operating activities ............. 11,353 8,028 5,088
Cash flows from investing activities:
Investment in property, plant and equipment ............... (2,536) (1,995) (2,126)
Proceeds from sale of property, plant and equipment ......... 556 542 447
Purchases of available-for-sale and other investments ......... (46) (1,729) (3,964)
Maturities and sales of available-for-sale securities and other
investments ...................................... 94 2,066 4,313
Payments made in connection with business acquisitions, net .... (855) (641) (1,124)
Net cash used in investing activities ................. (2,787) (1,757) (2,454)
Cash flows from financing activities:
Repayment of commercial paper and notes payable, net ....... (55) (1) (172)
Issuance of debt .................................... 1,121 84 9
Payment of debt .................................... (1,259) (1,827) (285)
Issuance of common stock under employee stock plans ........ 2,538 1,161 570
Repurchase of common stock .......................... (6,057) (3,514) (3,309)
Prepayment of common stock repurchase .................. (1,722) — —
Excess tax benefit from stock-based compensation ........... 251 — —
Dividends ......................................... (894) (926) (972)
Net cash used in financing activities ................. (6,077) (5,023) (4,159)
Increase (decrease) in cash and cash equivalents .............. 2,489 1,248 (1,525)
Cash and cash equivalents at beginning of period .............. 13,911 12,663 14,188
Cash and cash equivalents at end of period .................. $16,400 $13,911 $12,663
The accompanying notes are an integral part of these Consolidated Financial Statements.
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