Honeywell 2004 Annual Report Download - page 61

HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
Years Ended December 31,
2004 2003 2002
(Dollars in millions)
Cash Flows from Operating Activities
Net income (loss) $ 1,281 $1,324 $ (220)
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 (255) (38) 124
Repositioning and other charges 657 278 634
Severance and exit cost payments (164) (200) (447)
Environmental and non-asbestos litigation payments (273) (91) (313)
Business impairment charges 42 — 877
Asbestos related litigation charges, net of insurance 76 — 1,548
Asbestos related liability payments (518) (557) (135)
Insurance receipts for asbestos related liabilities 67 664 76
Depreciation and amortization 650 661 730
Undistributed earnings of equity affiliates (75) (38) (55)
Deferred income taxes 223 344 (775)
Pension and other postretirement benefits expense (income) 628 325 (11)
Pension contributions—U.S. plans (40) (670) (130)
Other postretirement benefit payments (207) (203) (199)
Other (121) (16) (133)
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts, notes and other receivables (470) (236) 105
Inventories (84) 118 333
Other current assets (77) (20) 51
Accounts payable 408 240 63
Accrued liabilities 505 294 257
Net cash provided by operating activities 2,253 2,199 2,380
Cash Flows from Investing Activities
Expenditures for property, plant and equipment (629) (655) (671)
Proceeds from disposals of property, plant and equipment 38 37 41
Decrease in investments 80 — 91
(Increase) in investments (115) — —
Cash paid for acquisitions (384) (199) (520)
Proceeds from sales of businesses 426 137 183
Decrease in short-term investments — — 6
Net cash (used for) investing activities (584) (680) (870)
Cash Flows from Financing Activities
Net increase (decrease) in commercial paper 220 (201) 198
Net (decrease) increase in short-term borrowings (121) 81 (96)
Proceeds from issuance of common stock 74 54 41
Proceeds from issuance of long-term debt — — 6
Payments of long-term debt (29) (147) (428)
Repurchases of common stock (724) (37) —
Cash dividends on common stock (643) (645) (614)
Other — — (39)
Net cash (used for) financing activities (1,223) (895) (932)
Effect of foreign exchange rate changes on cash and cash equivalents 190 305 50
Net increase in cash and cash equivalents 636 929 628
Cash and cash equivalents at beginning of year 2,950 2,021 1,393