National Oilwell Varco 2010 Annual Report Download - page 65

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NATIONAL OILWELL VARCO, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Years Ended December 31,
2010 2009 2008
Cash flows from operating activities:
Net income $ 1,659 $ 1,473 $ 1,968
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 507 490 402
Deferred income taxes (165) (174) (33)
Stock-based compensation 66 68 67
Excess tax benefit from the exercise of stock options (10) (1) (37)
Equity income in unconsolidated affiliate (36) (47) (42)
Dividend from unconsolidated affiliate 17 86
Intangible asset impairment 147
Other 135 75 115
Change in operating assets and liabilities, net of acquisitions:
Receivables (189) 1,033 (626)
Inventories 39 468 (643)
Costs in excess of billings (4) (122) 25
Prepaid and other current assets 15 23 230
Accounts payable 40 (361) 95
Billings in excess of costs (620) (1,071) 765
Other assets/liabilities, net 88 8 8
Net cash provided by operating activities 1,542 2,095 2,294
Cash flows from investing activities:
Purchases of property, plant and equipment (232) (250) (379)
Business acquisitions, net of cash acquired (556) (573) (3,008)
Business divestitures, net of cash disposed 801
Sale of equity interest, net 251
Dividend from unconsolidated affiliate 16 8 113
Other, net 29 12
Net cash used in investing activities (743) (552) (2,473)
Cash flows from financing activities:
Borrowings against lines of credit and other debt 3 7 2,731
Payments against lines of credit and other debt (16) (47) (2,920)
Dividends paid (172) (460)
Excess tax benefits from exercise of stock options 10 1 37
Proceeds from stock options exercised 73 8 78
Net cash used in financing activities (102) (491) (74)
Effect of exchange rates on cash 14 27 (46)
Increase (decrease) in cash and cash equivalents 711 1,079 (299)
Cash and cash equivalents, beginning of period 2,622 1,543 1,842
Cash and cash equivalents, end of period $ 3,333 $ 2,622 $ 1,543
Supplemental disclosures of cash flow information:
Cash payments during the period for:
Interest $ 56 $ 56 $ 76
Income taxes $ 551 $ 929 $ 1,261
The accompanying notes are an integral part of these statements.
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