Occidental Petroleum 2008 Annual Report Download - page 55

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Consolidated Statements of Cash Flows
In millions
Occidental Petroleum Corporation
and Subsidiaries
For the years ended December 31, 2008 2007 2006
CASH FLOW FROM OPERATING ACTIVITIES
Net income $6,857 $5,400 $4,191
Adjustments to reconcile net income to net cash provided by operating activities:
Discontinued operations, net (18) (322) 11
Depreciation, depletion and amortization of assets 2,710 2,379 2,008
Deferred income tax provision 268 35 98
Other noncash charges to income 1,187 945 588
Gains on disposition of assets, net (27) (874) (118)
Income from equity investments (213) (82) (183)
Dry hole and impairment expense 244 189 115
Changes in operating assets and liabilities:
Decrease (increase) in accounts and notes receivable 1,518 (2,219) (85)
Increase in inventories (64) (71) (64)
Decrease (increase) in prepaid expenses and other assets 6 (96) (161)
(Decrease) increase in accounts payable and accrued liabilities (1,342) 1,807 (191)
Decrease in current domestic and foreign income taxes (222) (73) (44)
Other operating, net (275) (358) (234)
Operating cash flow from continuing operations 10,629 6,660 5,931
Operating cash flow from discontinued operations, net of taxes 23 138 422
Net cash provided by operating activities 10,652 6,798 6,353
CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditures (4,664) (3,360) (2,857)
Sales of assets, net 27 509 982
Purchases of assets, net (4,701) (1,522) (2,625)
Purchases of short-term investments — (10) (177)
Sales of short-term investments — 250 190
Sales of equity investments and available-for-sale investments 51 1,157 251
Equity investments and other, net (170) (141) (124)
Investing cash flow from continuing operations (9,457) (3,117) (4,360)
Investing cash flow from discontinued operations — (11) (23)
Net cash used by investing activities (9,457) (3,128) (4,383)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from long-term debt 1,043 127 173
Payments of long-term debt and capital lease liabilities (96) (1,291) (1,066)
Proceeds from issuance of common stock 32 17 7
Purchases of treasury stock (1,511) (1,129) (1,473)
Redemption of preferred stock — (75) —
Cash dividends paid (940) (765) (646)
Stock options exercised 11 28 46
Excess tax benefits related to share-based payments 77 43 140
Other financing, net 2 — —
Net cash used by financing activities (1,382) (3,045) (2,819)
(Decrease) increase in cash and cash equivalents (187) 625 (849)
Cash and cash equivalents — beginning of year 1,964 1,339 2,188
Cash and cash equivalents — end of year $1,777 $1,964 $1,339
The accompanying notes are an integral part of these consolidated financial statements.
41
Notes to Consolidated Financial Statements Occidental Petroleum Corporation