IBM 1999 Annual Report Download - page 70

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consolidated statement of cash flows
International Business Machines Corporation
and Subsidiary Companies
(Dollars in millions)
At December 31: 1999 1998*1997*
Cash flow from operating activities:
Net income $«7,712 $«6,328 $«6,093
Adjustments to reconcile net income to cash provided
from operating activities:
Depreciation 6,159 4,475 4,018
Amortization of software 426 517 983
Deferred income taxes (713) (606) 358
Gain on disposition of fixed and other assets (4,791) (261) (273)
Other changes that (used) provided cash:
Receivables (1,677) (2,736) (3,727)
Inventories 301 73 432
Other assets (130) 219 (378)
Accounts payable (3) 362 699
Other liabilities 2,827 902 660
Net cash provided from operating activities 10,111 9,273 8,865
Cash flow from investing activities:
Payments for plant, rental machines and other property (5,959) (6,520) (6,793)
Proceeds from disposition of plant, rental machines
and other property 1,207 905 1,130
Investment in software (464) (250) (314)
Purchases of marketable securities and other investments (3,949) (4,211) (1,617)
Proceeds from marketable securities and other investments 2,616 3,945 1,439
Proceeds from sale of the Global Network 4,880 ——
Net cash used in investing activities (1,669) (6,131) (6,155)
Cash flow from financing activities:
Proceeds from new debt 6,133 7,567 9,142
Short-term borrowings less than 90 days—net 276 499 (668)
Payments to settle debt (7,510) (5,942) (4,530)
Preferred stock transactions—net —(5) (1)
Common stock transactions—net (6,645) (6,278) (6,250)
Cash dividends paid (879) (834) (783)
Net cash used in financing activities (8,625) (4,993) (3,090)
Effect of exchange rate changes on cash and cash equivalents (149) 120 (201)
Net change in cash and cash equivalents (332) (1,731) (581)
Cash and cash equivalents at January 1 5,375 7,106 7,687
Cash and cash equivalents at December 31 $«5,043 $«5,375 $«7,106
Supplemental data:
Cash paid during the year for:
Income taxes $«1,904 $«1,929 $«2,472
Interest $«1,574 $«1,605 $«1,475
*Reclassified to conform with 1999 presentation.
The accompanying notes on pages 69 through 93 are an integral part of the financial statements.
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