Lockheed Martin 2008 Annual Report Download - page 73

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Lockheed Martin Corporation
Consolidated Statement of Cash Flows
Year ended December 31,
(In millions) 2008 2007 2006
Operating Activities
Net earnings $ 3,217 $ 3,033 $ 2,529
Adjustments to reconcile net earnings to Net Cash Provided by Operating Activities
Depreciation and amortization of plant and equipment 727 666 600
Amortization of purchased intangibles 118 153 164
Stock-based compensation 155 149 111
Excess tax benefits on stock-based compensation (92) (124) (129)
Deferred income taxes 72 110 75
Changes in operating assets and liabilities:
Receivables (333) (324) 94
Inventories (183) (57) (530)
Accounts payable (141) (66) 217
Customer advances and amounts in excess of costs incurred 313 394 475
Other 568 304 159
Net Cash Provided by Operating Activities 4,421 4,238 3,765
Investing Activities
Expenditures for property, plant and equipment (926) (940) (893)
Acquisitions of businesses / investments in affiliates (233) (337) (1,122)
Divestitures of businesses / investments in affiliates —26 180
Net proceeds from short-term investment transactions 272 48 48
Other (20) (2) 132
Net Cash Used for Investing Activities (907) (1,205) (1,655)
Financing Activities
Issuances of common stock 250 350 627
Excess tax benefits on stock-based compensation 92 124 129
Repurchases of common stock (2,931) (2,127) (2,115)
Common stock dividends (737) (615) (538)
Issuance of long-term debt and related costs 491 ——
Repayments of long-term debt (1,103) (32) (210)
Premium and transaction costs for debt exchange —— (353)
Net Cash Used for Financing Activities (3,938) (2,300) (2,460)
Effect of exchange rate changes on cash and cash equivalents (56) 318
Net (decrease) increase in cash and cash equivalents (480) 736 (332)
Cash and cash equivalents at beginning of year 2,648 1,912 2,244
Cash and Cash Equivalents at end of year $ 2,168 $ 2,648 $ 1,912
See accompanying Notes to Consolidated Financial Statements.
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