HP 2008 Annual Report Download - page 89

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the fiscal years ended October 31
2008 2007 2006
In millions
Cash flows from operating activities:
Net earnings ........................................... $ 8,329 $ 7,264 $ 6,198
Adjustments to reconcile net earnings to net cash provided by operating
activities:
Depreciation and amortization ............................ 3,356 2,705 2,353
Stock-based compensation expense ......................... 606 629 536
Provision for doubtful accounts — accounts and financing receivables . 275 47 4
Provision for inventory .................................. 214 362 267
Restructuring charges ................................... 270 387 158
Pension curtailments and pension settlements, net ............... — (517) —
In-process research and development charges .................. 45 190 52
Acquisition-related charges ............................... 41 — —
Deferred taxes on earnings ............................... 1,035 415 693
Excess tax benefit from stock-based compensation ............... (293) (481) (251)
Losses (gains) on investments ............................. 11 (14) (25)
Other, net ........................................... (83) (86) 18
Changes in assets and liabilities:
Accounts and financing receivables ........................ (261) (2,808) (882)
Inventory .......................................... 89 (633) (1,109)
Accounts payable .................................... 1,630 (346) 1,879
Taxes on earnings .................................... (43) 502 (513)
Restructuring ....................................... (165) (606) (810)
Other assets and liabilities .............................. (465) 2,605 2,785
Net cash provided by operating activities .................. 14,591 9,615 11,353
Cash flows from investing activities:
Investment in property, plant and equipment .................... (2,990) (3,040) (2,536)
Proceeds from sale of property, plant and equipment .............. 425 568 556
Purchases of available-for-sale securities and other investments ....... (178) (283) (46)
Maturities and sales of available-for-sale securities and other investments . 280 425 94
Payments made in connection with business acquisitions, net ......... (11,248) (6,793) (855)
Net cash used in investing activities ...................... (13,711) (9,123) (2,787)
Cash flows from financing activities:
Issuance (repayment) of commercial paper and notes payable, net ..... 5,015 1,863 (55)
Issuance of debt ........................................ 3,121 4,106 1,121
Payment of debt ........................................ (1,843) (3,419) (1,259)
Issuance of common stock under employee stock plans ............. 1,810 3,103 2,538
Repurchase of common stock ............................... (9,620) (10,887) (6,057)
Prepayment of common stock repurchase ...................... — — (1,722)
Excess tax benefit from stock-based compensation ................ 293 481 251
Dividends ............................................. (796) (846) (894)
Net cash used in financing activities ..................... (2,020) (5,599) (6,077)
(Decrease) increase in cash and cash equivalents ................... (1,140) (5,107) 2,489
Cash and cash equivalents at beginning of period .................. 11,293 16,400 13,911
Cash and cash equivalents at end of period ....................... $10,153 $ 11,293 $16,400
The accompanying notes are an integral part of these Consolidated Financial Statements.
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