PG&E 2007 Annual Report Download - page 87

85
Year ended December 31,
(in millions) 2007 2006 2005
Cash Flows From Operating Activities
Net income $ 1,006 $ 991 $ 917
Gain on disposal of NEGT (net of income tax benefi t of $13 million in 2005) — — (13)
Net income from continuing operations 1,006 991 904
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, decommissioning, and allowance for equity funds used during construction 1,895 1,756 1,698
Tax benefi t from employee stock plans — — 50
Gain on sale of assets (1) (11) —
Deferred income taxes and tax credits, net 55 (285) (659)
Other changes in noncurrent assets and liabilities 192 151 33
Net effect of changes in operating assets and liabilities:
Accounts receivable (6) 130 (245)
Inventories (41) 32 (60)
Accounts payable (178) 17 257
Accrued taxes/income taxes receivable 56 124 (207)
Regulatory balancing accounts, net (567) 329 254
Other current assets 172 (273) 29
Other current liabilities 8 (233) 273
Other (45) (14) 82
Net cash provided by operating activities 2,546 2,714 2,409
Cash Flows From Investing Activities
Capital expenditures (2,769) (2,402) (1,804)
Net proceeds from sale of assets 21 17 39
Decrease in restricted cash 185 115 434
Proceeds from nuclear decommissioning trust sales 830 1,087 2,918
Purchases of nuclear decommissioning trust investments (933) (1,244) (3,008)
Other — — 23
Net cash used in investing activities (2,666) (2,427) (1,398)
Cash Flows From Financing Activities
Borrowings under accounts receivable facility and working capital facility 850 350 260
Repayments under accounts receivable facility and working capital facility (900) (310) (300)
Net issuance (repayments) of commercial paper, net of discount of $1 million in 2007 and $2 million in 2006 (209) 458 —
Proceeds from issuance of long-term debt, net of discount and issuance costs of $16 million in 2007 and
$3 million in 2005 1,184 — 451
Proceeds from issuance of energy recovery bonds, net of issuance costs of $21 million in 2005 — — 2,711
Long-term debt matured, redeemed, or repurchased — — (1,556)
Rate reduction bonds matured (290) (290) (290)
Energy recovery bonds matured (340) (316) (140)
Preferred stock with mandatory redemption provisions redeemed — — (122)
Preferred stock without mandatory redemption provisions redeemed — — (37)
Common stock issued 175 131 243
Common stock repurchased — (114) (2,188)
Common stock dividends paid (496) (456) (334)
Other 35 3 32
Net cash provided by (used in) fi nancing activities 9 (544) (1,270)
Net change in cash and cash equivalents (111) (257) (259)
Cash and cash equivalents at January 1 456 713 972
Cash and cash equivalents at December 31 $ 345 $ 456 $ 713
Supplemental disclosures of cash fl ow information
Cash paid for:
Interest (net of amounts capitalized) $ 514 $ 503 $ 403
Income taxes paid, net 537 736 1,392
Supplemental disclosures of noncash investing and fi nancing activities
Common stock dividends declared but not yet paid $ 129 $ 117 $ 115
Assumption of capital lease obligation — 408 —
Transfer of Gateway Generating Station asset — 69 —
CONSOLIDATED STATEMENTS OF CASH FLOWS
PG&E Corporation
See accompanying Notes to the Consolidated Financial Statements.