Honeywell 2008 Annual Report Download - page 71

HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
Years Ended December 31,
2008 2007 2006
(Dollars in millions)
Cash flows from operating activities:
Net income $ 2,792 $ 2,444 $ 2,083
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 903 837 794
Gain on sale of non-strategic businesses and assets (635) (19) (30)
Repositioning and other charges 1,012 543 483
Payments of repositioning and other charges (446) (504) (559)
Pension and other postretirement expense 113 322 459
Pension and other postretirement benefit payments (214) (300) (353)
Stock option expense 128 65 77
Deferred income taxes 115 332 450
Excess tax benefits from share based payment arrangements (21) (86) (31)
Other 81 180 50
Changes in assets and liabilities, net of the effects of acquisitions and
divestitures:
Accounts, notes and other receivables 392 (467) (573)
Inventories (161) (183) (128)
Other current assets 25 17 (11)
Accounts payable (152) 397 516
Accrued liabilities (141) 333 (16)
Net cash provided by operating activities 3,791 3,911 3,211
Cash flows from investing activities:
Expenditures for property, plant and equipment (884) (767) (733)
Proceeds from disposals of property, plant and equipment 53 98 87
Increase in investments (6) (20) —
Decrease in investments 18 6 —
Cash paid for acquisitions, net of cash acquired (2,181) (1,150) (633)
Proceeds from sales of businesses, net of fees paid 909 51 665
Other 68 — —
Net cash (used for) investing activities (2,023) (1,782) (614)
Cash flows from financing activities:
Net (decrease)/increase in commercial paper (325) 1,078 (86)
Net (decrease) in short-term borrowings (1) (3) (224)
Payment of debt assumed with acquisitions — (40) (346)
Proceeds from issuance of common stock 146 603 396
Proceeds from issuance of long-term debt 1,487 1,885 1,239
Payments of long-term debt (428) (430) (1,019)
Excess tax benefits from share based payment arrangements 21 86 31
Repurchases of common stock (1,459) (3,986) (1,896)
Cash dividends paid on common stock (811) (767) (744)
Net cash (used for) financing activities (1,370) (1,574) (2,649)
Effect of foreign exchange rate changes on cash and cash equivalents (162) 50 42
Net increase/(decrease) in cash and cash equivalents 236 605 (10)
Cash and cash equivalents at beginning of period 1,829 1,224 1,234
Cash and cash equivalents at end of period $ 2,065 $ 1,829 $ 1,224