McKesson 2008 Annual Report Download - page 70

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McKESSON CORPORATION
See Financial Notes
63
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Years Ended March 31,
2008 2007 2006
Operating Activities
Net income $ 990 $ 913 $ 751
Discontinued operations, net of income taxes (1) 55 (6)
Adjustments to reconcile to net cash provided by operating
activities:
Depreciation 124 112 109
Amortization 247 183 153
Provision for bad debts 41 24 11
Deferred taxes 198 167 403
Share-based compensation expense 91 60 16
Excess tax benefit from share-based payment arrangements (83) (70) -
Other non-cash items (24) (66) (64)
Changes in operating assets and liabilities, net of acquisitions:
Receivables (288) (209) (519)
Inventories (676) (928) 601
Drafts and accounts payable 762 872 1,104
Deferred revenue 98 181 379
Taxes 336 144 (53)
Securities Litigation charge (credit), net (5) (6) 45
Securities Litigation settlement payments (962) (25) (243)
Proceeds from sale of notes receivable 16 5 60
Other 5 127 (9)
Net cash provided by operating activities 869 1,539 2,738
Investing Activities
Property acquisitions (195) (126) (166)
Capitalized software expenditures (161) (180) (160)
Acquisitions of businesses, less cash and cash equivalents
acquired (610) (1,938) (589)
Proceeds from sale of businesses - 179 63
Restricted cash for Consolidated Securities Litigation Action 962 - (962)
Other (1) (43) 1
Net cash used in investing activities (5) (2,108) (1,813)
Financing Activities
Proceeds from issuances of debt, net - 1,997 -
Repayment of debt (162) (1,031) (24)
Capital stock transactions:
Issuances 354 399 568
Share repurchases (1,698) (1,003) (958)
Excess tax benefits from share-based arrangements 83 70 -
ESOP notes and guarantees 11 10 12
Dividends paid (70) (72) (73)
Other 12 9 (108)
Net cash provided by (used in) financing activities (1,470) 379 (583)
Effect of exchange rate changes on cash and cash equivalents 14 5 (3)
Net increase (decrease) in cash and cash equivalents (592) (185) 339
Cash and cash equivalents at beginning of year 1,954 2,139 1,800
Cash and cash equivalents at end of year $ 1,362 $ 1,954 $ 2,139
Supplemental Information:
Cash paid for:
Interest $ 146 $ 100 $ 100
Income taxes, net of refunds (66) 27 84
Non-cash Transaction:
Common stock issued in conjunction with redemption of
long-term debt $ - $ - $ 196