UPS 2006 Annual Report Download - page 68

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED CASH FLOWS
(In millions)
Years Ended December 31,
2006 2005 2004
Cash Flows From Operating Activities:
Netincome..................................................... $4,202 $ 3,870 $ 3,333
Adjustments to reconcile net income to net cash from operating
activities:
Depreciation and amortization ............................. 1,748 1,644 1,543
Pension and postretirement benefit expense ................... 568 442 483
Pension and postretirement benefit contributions ............... (1,625) (995) (586)
Deferred taxes, credits and other ............................ 279 450 289
Stock compensation expense ............................... 369 234 610
Other (gains) losses ...................................... 128 170 144
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable, net .............................. (77) (789) (686)
Other current assets .................................. 81 213 390
Accountspayable.................................... 24 158 318
Accrued wages and withholdings ....................... 12 56 (73)
Incometaxespayable................................. (58) 179 (399)
Other current liabilities ............................... (62) 161 (35)
Net cash from operating activities ............................... 5,589 5,793 5,331
Cash Flows From Investing Activities:
Capital expenditures ............................................. (3,085) (2,187) (2,127)
Proceeds from disposals of property, plant and equipment . . . . . . . . . . . . . . . . 75 27 75
Purchases of marketable securities and short-term investments ............ (9,056) (7,623) (6,322)
Sales and maturities of marketable securities and short-term investments .... 9,538 10,375 4,724
Net decrease in finance receivables .................................. 68 95 318
Cash paid for business acquisitions .................................. (50) (1,488) (238)
Other investing activities .......................................... 170 (174) (68)
Net cash (used in) investing activities ............................ (2,340) (975) (3,638)
Cash Flows From Financing Activities:
Net change in short-term debt ...................................... (513) (287) 471
Proceeds from long-term borrowings ................................ 649 128 340
Repayments of long-term borrowings ................................ (90) (302) (468)
Purchases of common stock ....................................... (2,460) (2,479) (1,310)
Issuances of common stock ........................................ 164 164 193
Dividends ...................................................... (1,577) (1,391) (1,208)
Other financing activities ......................................... (24) (8) (32)
Net cash (used in) financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,851) (4,175) (2,014)
Effect Of Exchange Rate Changes On Cash and Cash Equivalents .......... 27 (13) (4)
Net Increase (Decrease) In Cash And Cash Equivalents ................... (575) 630 (325)
Cash And Cash Equivalents:
Beginning of period .............................................. 1,369 739 1,064
End of period ................................................... $ 794 $ 1,369 $ 739
Cash Paid During The Period For:
Interest (net of amount capitalized) .................................. $ 210 $ 169 $ 120
Income taxes ................................................... $2,061 $ 1,465 $ 2,037
See notes to consolidated financial statements.
F-8