HP 2007 Annual Report Download - page 91

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the fiscal years ended October 31
2007 2006 2005
In millions
Cash flows from operating activities:
Net earnings .................................................................................................................................. $7,264 $6,198 $2,398
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization.................................................................................................. 2,705 2,353 2,344
Stock-based compensation expense.......................................................................................... 629 536 104
Provision (benefit) for doubtful accounts — accounts and financing receivables................... 47 4(22)
Provision for inventory ............................................................................................................. 362 267 398
Restructuring charges................................................................................................................ 387 158 1,684
Pension curtailments and pension settlements, net................................................................... (517) —(199)
In-process research and development charges.......................................................................... 190 52 2
Deferred taxes on earnings........................................................................................................ 415 693 (162)
Excess tax benefit from stock-based compensation ................................................................. (481) (251) —
(Gains) losses on investments...................................................................................................(14) (25) 13
Other, net................................................................................................................................... (86) 18 (82)
Changes in assets and liabilities:
Accounts and financing receivables...................................................................................... (2,808) (882) 666
Inventory................................................................................................................................ (633) (1,109) (208)
Accounts payable................................................................................................................... (346) 1,879 846
Taxes on earnings.................................................................................................................. 502 (513) 748
Restructuring ......................................................................................................................... (606) (810) (247)
Other assets and liabilities..................................................................................................... 2,605 2,785 (255)
Net cash provided by operating activities ......................................................................... 9,615 11,353 8,028
Cash flows from investing activities:
Investment in property, plant and equipment............................................................................... (3,040) (2,536) (1,995)
Proceeds from sale of property, plant and equipment.................................................................. 568 556 542
Purchases of available-for-sale securities and other investments ................................................ (283) (46) (1,729)
Maturities and sales of available-for-sale securities and other investments ................................ 425 94 2,066
Payments made in connection with business acquisitions, net .................................................... (6,793) (855) (641)
Net cash used in investing activities.................................................................................. (9,123) (2,787) (1,757)
Cash flows from financing activities:
Issuance (repayment) of commercial paper and notes payable, net............................................. 1,863 (55) (1)
Issuance of debt ............................................................................................................................ 4,106 1,121 84
Payment of debt ............................................................................................................................ (3,419) (1,259) (1,827)
Issuance of common stock under employee stock plans.............................................................. 3,103 2,538 1,161
Repurchase of common stock....................................................................................................... (10,887) (6,057) (3,514)
Prepayment of common stock repurchase.................................................................................... —(1,722) —
Excess tax benefit from stock-based compensation..................................................................... 481 251 —
Dividends ...................................................................................................................................... (846) (894) (926)
Net cash used in financing activities ................................................................................. (5,599) (6,077) (5,023)
(Decrease) increase in cash and cash equivalents............................................................................ (5,107) 2,489 1,248
Cash and cash equivalents at beginning of period........................................................................... 16,400 13,911 12,663
Cash and cash equivalents at end of period ..................................................................................... $11,293 $16,400 $13,911
The accompanying notes are an integral part of these Consolidated Financial Statements.
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