Johnson and Johnson 2009 Annual Report Download - page 41

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Consolidated Statements of Cash Flows Johnson & Johnson and Subsidiaries
(Dollars in Millions) (Note 1) 2009 2008 2007
C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S 39
Cash flows from operating activities
Net earnings $ 12,266 12,949 10,576
Adjustments to reconcile net earnings to cash flows from
operating activities:
Depreciation and amortization of property and intangibles 2,774 2,832 2,777
Stock based compensation 628 627 698
Purchased in-process research and development — 181 807
Intangible asset write-down (NATRECOR®) ——678
Deferred tax provision (436) 22 (1,762)
Accounts receivable allowances 58 86 22
Changes in assets and liabilities, net of effects from acquisitions:
Decrease/(increase) in accounts receivable 453 (736) (416)
Decrease/(increase) in inventories 95 (101) 14
(Decrease)/increase in accounts payable and accrued liabilities (507) (272) 2,642
Decrease/(increase) in other current and non-current assets 1,209 (1,600) (1,578)
Increase in other current and non-current liabilities 31 984 564
Net cash flows from operating activities 16,571 14,972 15,022
Cash flows from investing activities
Additions to property, plant and equipment (2,365) (3,066) (2,942)
Proceeds from the disposal of assets 154 785 457
Acquisitions, net of cash acquired (Note 20) (2,470) (1,214) (1,388)
Purchases of investments (10,040) (3,668) (9,659)
Sales of investments 7,232 3,059 7,988
Other (primarily intangibles) (109) (83) (368)
Net cash used by investing activities (7,598) (4,187) (5,912)
Cash flows from financing activities
Dividends to shareholders (5,327) (5,024) (4,670)
Repurchase of common stock (2,130) (6,651) (5,607)
Proceeds from short-term debt 9,484 8,430 19,626
Retirement of short-term debt (6,791) (7,319) (21,691)
Proceeds from long-term debt 9 1,638 5,100
Retirement of long-term debt (219) (24) (18)
Proceeds from the exercise of stock options/excess tax benefits 882 1,486 1,562
Net cash used by financing activities (4,092) (7,464) (5,698)
Effect of exchange rate changes on cash and cash equivalents 161 (323) 275
Increase in cash and cash equivalents 5,042 2,998 3,687
Cash and cash equivalents, beginning of year (Note 1) 10,768 7,770 4,083
Cash and cash equivalents, end of year (Note 1) $ 15,810 10,768 7,770
Supplemental cash flow data
Cash paid during the year for:
Interest $ 533 525 314
Income taxes 2,363 4,068 4,099
Supplemental schedule of noncash investing and financing activities
Treasury stock issued for employee compensation and
stock option plans, net of cash proceeds $ 541 593 738
Conversion of debt 2—9
Acquisitions
Fair value of assets acquired $ 3,345 1,328 1,620
Fair value of liabilities assumed and non-controlling interests (875) (114) (232)
Net cash paid for acquisitions $ 2,470 1,214 1,388
See Notes to Consolidated Financial Statements