Honeywell 2003 Annual Report Download - page 366

CONSOLIDATED STATEMENT OF CASH FLOWS Honeywell International Inc.
Years Ended December 31,
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(Dollars in Millions) 2003 2002 2001
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CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) ........................................................................... $1,324 $ (220) $ (99)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Cumulative effect of accounting change ................................................... 20 -- --
(Gain) loss on sale of non-strategic businesses .......................................... (38) 124 --
Repositioning and other charges .......................................................... 278 634 2,491
Severance and exit cost payments ......................................................... (200) (447) (422)
Environmental and non-asbestos litigation payments ....................................... (91) (313) (380)
Business impairment charges .............................................................. -- 877 145
Asbestos related litigation charges, net of insurance .................................... -- 1,548 159
Asbestos related liability payments ...................................................... (557) (135) (176)
Insurance receipts for asbestos related liabilities ...................................... 664 76 50
Depreciation ............................................................................. 595 671 724
Goodwill and indefinite-lived intangible asset amortization .............................. -- -- 204
Undistributed earnings of equity affiliates .............................................. (38) (55) (1)
Deferred income taxes .................................................................... 344 (775) (447)
Net taxes paid on sales of businesses .................................................... -- -- (42)
Pension and other postretirement benefits expense (income) ............................... 325 (11) (165)
Pension contributions--U.S. plans ........................................................ (670) (130) --
Other postretirement benefit payments .................................................... (203) (199) (169)
Other .................................................................................... 50 (74) (233)
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts, notes and other receivables ................................................. (236) 105 601
Inventories ........................................................................... 118 333 168
Other current assets .................................................................. (20) 51 51
Accounts payable ...................................................................... 240 63 (400)
Accrued liabilities ................................................................... 294 257 (63)
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Net cash provided by operating activities .......................................... 2,199 2,380 1,996
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CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment .............................................. (655) (671) (876)
Proceeds from disposals of property, plant and equipment .................................... 37 41 46
Decrease in investments ..................................................................... -- 91 --
Cash paid for acquisitions .................................................................. (199) (520) (122)
Proceeds from sales of businesses ........................................................... 137 183 44
Decrease in short-term investments .......................................................... -- 6 2
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Net cash (used for) investing activities ........................................... (680) (870) (906)
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CASH FLOWS FROM FINANCING ACTIVITIES
Net (decrease) increase in commercial paper ................................................. (201) 198 (1,189)
Net increase (decrease) in short-term borrowings ............................................ 81 (96) 18
Proceeds from issuance of common stock ...................................................... 54 41 79
Proceeds from issuance of long-term debt .................................................... -- 6 1,237
Payments of long-term debt .................................................................. (147) (428) (390)
Repurchases of common stock ................................................................. (37) -- (30)
Cash dividends on common stock .............................................................. (645) (614) (609)
Other ....................................................................................... -- (39) --
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Net cash (used for) financing activities .......................................... (895) (932) (884)
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Effect of foreign exchange rate changes on cash and cash equivalents ........................... 305 50 (9)
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Net increase in cash and cash equivalents ...................................................... 929 628 197
Cash and cash equivalents at beginning of year ................................................. 2,021 1,393 1,196
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Cash and cash equivalents at end of year ....................................................... $2,950 $2,021 $ 1,393
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The Notes to Financial Statements are an integral part of this statement.
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