Medtronic 2010 Annual Report Download - page 55

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51
Medtronic, Inc.
Consolidated Statements of Cash Flows
Fiscal Year
(in millions) 2010 2009 2008
Operating Activities:
Net earnings $ 3,099 $ 2,070 $ 2,138
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 772 699 637
Amortization of discount on senior convertible notes 167 154 145
Special charges —— 78
IPR&D charges 11 621 390
Provision for doubtful accounts 36 23 31
Deferred income taxes 144 (171) (101)
Stock-based compensation 225 237 217
Excess tax benefit from exercise of stock-based awards —(24) (40)
Change in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable (271) 108 (461)
Inventories 158 (212) 30
Prepaid expenses and other assets 33 (121) 92
Accounts payable and accrued liabilities 225 510 (305)
Other operating assets and liabilities 97 (26) 272
Certain litigation charges, net 374 714 366
Certain litigation payments (939) (704) —
Net cash provided by operating activities 4,131 3,878 3,489
Investing Activities:
Acquisitions, net of cash acquired (350) (1,624) (4,221)
Purchase of intellectual property (62) (165) (93)
Additions to property, plant and equipment (573) (498) (513)
Purchases of marketable securities (7,478) (2,960) (6,433)
Sales and maturities of marketable securities 3,791 2,845 8,557
Other investing activities, net (87) (338) (87)
Net cash used in investing activities (4,759) (2,740) (2,790)
Financing Activities:
Change in short-term borrowings, net (444) (633) 543
Payments on long-term debt (20) (300) (12)
Issuance of long-term debt 3,000 1,250 300
Dividends to shareholders (907) (843) (565)
Issuance of common stock under stock purchase and award plans 165 416 403
Excess tax benefit from exercise of stock-based awards —24 40
Repurchase of common stock (1,030) (759) (1,544)
Net cash provided by (used in) financing activities 764 (845) (835)
Effect of exchange rate changes on cash and cash equivalents (7) (82) (60)
Net change in cash and cash equivalents 129 211 (196)
Cash and cash equivalents at beginning of period 1,271 1,060 1,256
Cash and cash equivalents at end of period $ 1,400 $ 1,271 $ 1,060
Supplemental Cash Flow Information
Cash paid for:
Income taxes $ 571 $ 436 $ 717
Interest 386 208 258
Supplemental non-cash investing and financing activities:
Reclassification of debentures from short-term to long-term debt $ — $ 15 $ —
Reclassification of debentures from long-term to short-term debt —— 94
Reclassification of senior notes from long-term to short-term debt 400 — —
Reclassification of senior convertible notes from long-term to short-term debt 2,200 — —
The accompanying notes are an integral part of these consolidated financial statements.