IBM 2002 Annual Report Download - page 71

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Consolidated Statement of Cash Flows
69
international business machines corporation and Subsidiary Companies
(dollars in millions)
for the year ended december 31: 2002 2001*2000*
cash flow from operating activities from continuing operations:
Income from continuing operations $«5,334 $«8,146 $«7,874
Adjustments to reconcile net income from continuing operations
to cash provided by operating activities:
Depreciation 3,691 3,881 4,224
Amortization of software 688 625 482
Deferred income taxes (67) 664 44
Net gain on assets sales and other (343) (340) (751)
Other than temporary declines in securities and other investments 58 405 —
Noncash portion of special actions 1,350 ——
Change in operating assets and liabilities, net of acquisitions/divestitures:
Receivables 4,125 2,837 (4,692)
Inventories 793 287 (22)
Pension assets (4,227) (1,758) (1,333)
Other assets 70 1,244 673
Accounts payable (55) (918) 2,134
Pension liabilities 83 (69) (237)
Other liabilities 2,288 (1,038) 441
net cash provided by operating activities from continuing operations 13,788 13,966 8,837
cash flow from investing activities from continuing operations:
Payments for plant, rental machines and other property (4,753) (5,400) (5,319)
Proceeds from disposition of plant, rental machines and other property 775 1,149 1,569
Investment in software (597) (655) (565)
Purchases of marketable securities and other investments (1,582) (778) (750)
Proceeds from disposition of marketable securities and other investments 1,185 738 1,393
Divestiture of businesses 1,233 ——
Acquisition of businesses (3,158) (916) (329)
net cash used in investing activities from continuing operations (6,897) (5,862) (4,001)
cash flow from financing activities from continuing operations:
Proceeds from new debt 6,726 4,535 9,604
Short-term (repayments)/borrowings less than 90 days
—
net (4,087) 2,926 (1,400)
Payments to settle debt (5,812) (7,898) (7,561)
Preferred stock transactions
—
net —(254) —
Common stock transactions
—
net (3,087) (3,652) (6,073))
Cash dividends paid (1,005) (966) (929)
net cash used in financing activities from continuing operations (7,265) (5,309) (6,359)
Effect of exchange rate changes on cash and cash equivalents 148 (83) (147)
Net cash (used in)/provided by discontinued operations (722) 55 190
Net change in cash and cash equivalents (948) 2,767 (1,480)
Cash and cash equivalents at January 1 6,330 3,563 5,043
cash and cash equivalents at december 31 $«5,382 $«6,330 $«3,563
supplemental data:
Cash paid during the year for the total company:
Income taxes $«1,841 $«2,279 $«2,697
Interest $««««831 $«1,247 $«1,447
noncash investing and financing activities:
The noncash portion of the purchase price paid for PwCC is a significant noncash investing activity. This transaction is
described on page 78.
*Reclassified to conform with 2002 presentation.
The accompanying notes on pages 70 through 104 are an integral part of the financial statements.