IBM 2003 Annual Report Download - page 81

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79
(dollars in millions)
FOR THE YEAR ENDED DECEMBER 31: 2003 2002 2001
Cash Flow from Operating Activities from Continuing Operations:
Income from continuing operations $««7,613 $««5,334 $««8,146
Adjustments to reconcile income from continuing operations
to cash provided by operating activities:
Depreciation 3,961 3,691 3,881
Amortization of software 740 688 625
Deferred income taxes 1,126 (67) 664
Net gain on asset sales and other (275) (343) (340)
Other than temporary declines in securities and other investments 50 58 405
Noncash portion of special actions —1,350 —
Change in operating assets and liabilities, net of acquisitions/divestitures:
Receivables 2,024 4,125 2,837
Inventories 293 793 287
Pension assets (1,409) (4,227) (1,758)
Other assets (352) 70 1,244
Accounts payable 617 (55) (918)
Pension liabilities (286) 83 (69)
Other liabilities 467 2,288 (1,038)
Net Cash Provided by Operating Activities from Continuing Operations 14,569 13,788 13,966
Cash Flow from Investing Activities from Continuing Operations:
Payments for plant, rental machines and other property (4,393) (4,753) (5,400)
Proceeds from disposition of plant, rental machines and other property 1,039 775 1,149
Investment in software (581) (597) (655)
Purchases of marketable securities and other investments (6,471) (1,582) (778)
Proceeds from disposition of marketable securities and other investments 7,023 1,185 738
Divestiture of businesses 97 1,233 —
Acquisition of businesses (1,836) (3,158) (916)
Net Cash Used in Investing Activities from Continuing Operations (5,122) (6,897) (5,862)
Cash Flow from Financing Activities from Continuing Operations:
Proceeds from new debt 1,573 6,726 4,535
Short-term borrowings/(repayments) less than 90 days—net 777 (4,087) 2,926
Payments to settle debt (5,831) (5,812) (7,898)
Preferred stock transactions—net ——(254)
Common stock transactions—net (3,232) (3,087) (3,652)
Cash dividends paid (1,085) (1,005) (966)
Net Cash Used in Financing Activities from Continuing Operations (7,798) (7,265) (5,309)
Effect of exchange rate changes on cash and cash equivalents 421 148 (83)
Net cash (used in)/provided by discontinued operations (162) (722) 55
Net change in cash and cash equivalents 1,908 (948) 2,767
Cash and cash equivalents at January 1 5,382 6,330 3,563
Cash and Cash Equivalents at December 31 $««7,290 $««5,382 $««6,330
Supplemental Data:
Cash paid during the year for the total company:
Income taxes $««1,707 $««1,841 $««2,279
Interest $«««««853 $«««««831 $««1,247
Noncash Investing and Financing Activities :
The noncash portion of the purchase price paid to PwCC is a significant noncash investing activity. This transaction is
described on pages 90 and 91.
The accompanying notes on pages 80 through 121 are an integral part of the financial statements.
Consolidated Statement of Cash Flows
INTERNATIONAL BUSINESS MACHINES CORPORATION AND SUBSIDIARY COMPANIES