IBM 2014 Annual Report Download - page 84

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83
Consolidated Statement of Cash Flows
International Business Machines Corporation and Subsidiary Companies
($ in millions)
For the year ended December 31: 2014 2013 2012
Cash flows from operating activities
Net income $ 12,022 $ 16,483 $ 16,604
Adjustments to reconcile net income
to cash provided by operating activities
Depreciation 3,145 3,327 3,392
Amortization of intangibles 1,347 1,351 1,284
Stock-based compensation 512 614 688
Deferred taxes (237) (1,610) 797
Net (gain)/loss on asset sales and other (1,535) (236) (729)
Loss on microelectronics business disposal 3,381 — —
Change in operating assets and liabilities, net of acquisitions/divestitures
Receivables (including financing receivables) 1,270 (1,407) (2,230)
Retirement related (655) 294 (1,008)
Inventories (39) (57) 280
Other assets/other liabilities (1,886) (747) 733
Accounts payable (456) (529) (224)
Net cash provided by operating activities 16,868 17,485 19,586
Cash flows from investing activities
Payments for property, plant and equipment (3,740) (3,623) (4,082)
Proceeds from disposition of property, plant and equipment 404 372 410
Investment in software (443) (517) (635)
Purchases of marketable securities and other investments (2,338) (4,608) (4,109)
Proceeds from disposition of marketable securities and other investments 2,493 4,873 3,142
Non-operating finance receivables—net (1,078) (1,063) (608)
Acquisition of businesses, net of cash acquired (656) (3,056) (3,722)
Divestiture of businesses, net of cash transferred 2,357 297 599
Net cash used in investing activities (3,001) (7,326) (9,004)
Cash flows from financing activities
Proceeds from new debt 8,180 16,353 12,242
Payments to settle debt (4,644) (10,013) (9,549)
Short-term borrowings/(repayments) less than 90 days—net (1,753) 621 (441)
Common stock repurchases (13,679) (13,859) (11,995)
Common stock transactions—other 709 1,074 1,540
Cash dividends paid (4,265) (4,058) (3,773)
Net cash used in financing activities (15,452) (9,883) (11,976)
Effect of exchange rate changes on cash and cash equivalents (655) 28 (116)
Net change in cash and cash equivalents (2,240) 304 (1,511)
Cash and cash equivalents at January 1 10,716 10,412 11,922
Cash and cash equivalents at December 31 $ 8,476 $ 10,716 $ 10,412
Supplemental data
Income taxes paid—net of refunds received $ 5,748 $ 4,024 $ 3,169
Interest paid on debt $ 1,061 $ 982 $ 1,009
Capital lease obligations $ 2 $ 14 $ 10
Amounts may not add due to rounding.
The accompanying notes on pages 86 through 150 are an integral part of the financial statements.