IBM 2011 Annual Report Download - page 75

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73
Consolidated Statement of Cash Flows
International Business Machines Corporation and Subsidiary Companies
($ in millions)
For the year ended December 31: 2011 2010 2009
Cash flows from operating activities
Net income $ 15,855 $ 14,833 $ 13,425
Adjustments to reconcile net income
to cash provided by operating activities
Depreciation 3,589 3,657 3,773
Amortization of intangibles 1,226 1,174 1,221
Stock-based compensation 697 629 558
Deferred taxes 1,212 1,294 1,773
Net (gain)/loss on asset sales and other (342) (801) (395)
Change in operating assets and liabilities, net of acquisitions/divestitures
Receivables (including financing receivables) (1,279) (489) 2,131
Retirement related (1,371) (1,963) (2,465)
Inventories (163) 92 263
Other assets/other liabilities (28) 949 319
Accounts payable 451 174 170
Net cash provided by operating activities 19,846 19,549 20,773
Cash flows from investing activities
Payments for property, plant and equipment (4,108) (4,185) (3,447)
Proceeds from disposition of property, plant and equipment 608 770 330
Investment in software (559) (569) (630)
Purchases of marketable securities and other investments (1,594) (6,129) (5,604)
Proceeds from disposition of marketable securities and other investments 3,345 7,877 3,599
Non-operating finance receivables—net (291) (405) (184)
Acquisition of businesses, net of cash acquired (1,811) (5,922) (1,194)
Divestiture of businesses, net of cash transferred 14 55 400
Net cash used in investing activities (4,396) (8,507) (6,729)
Cash flows from financing activities
Proceeds from new debt 9,996 8,055 6,683
Payments to settle debt (8,947) (6,522) (13,495)
Short-term borrowings/(repayments) less than 90 days—net 1,321 817 (651)
Common stock repurchases (15,046) (15,375) (7,429)
Common stock transactions—other 2,453 3,774 3,052
Cash dividends paid (3,473) (3,177) (2,860)
Net cash used in financing activities (13,696) (12,429) (14,700)
Effect of exchange rate changes on cash and cash equivalents (493) (135) 98
Net change in cash and cash equivalents 1,262 (1,522) (558)
Cash and cash equivalents at January 1 10,661 12,183 12,741
Cash and cash equivalents at December 31 $ 11,922 $ 10,661 $ 12,183
Supplemental data
Income taxes paid—net of refunds received $ 4,168 $ 3,238 $ 1,567
Interest paid on debt $ 956 $ 951 $ 1,240
Capital lease obligations $ 39 $ 30 $ 15
Amounts may not add due to rounding.
The accompanying notes on pages 76 through 139 are an integral part of the financial statements.