UPS 2008 Annual Report Download - page 64

UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED CASH FLOWS
(In millions)
Years Ended December 31,
2008 2007 2006
Cash Flows From Operating Activities:
Net income ......................................................... $3,003 $ 382 $ 4,202
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization .................................. 1,814 1,745 1,748
Pension and postretirement benefit expense ........................ 726 513 568
Pension and postretirement benefit contributions .................... (246) (687) (1,625)
Deferred taxes, credits and other ................................. 187 (249) 99
Stock compensation expense .................................... 516 447 369
Self-insurance reserves ........................................ 87 69 180
Asset impairment charges ...................................... 575 221 —
Other (gains) losses ........................................... 634 243 128
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable ...................................... 197 (380) (77)
Income taxes receivable ................................... 1,161 (1,191) 17
Other current assets ....................................... (144) (3) 82
Accounts payable ........................................ 87 (37) 24
Accrued wages and withholdings ............................ 44 108 12
Other current liabilities .................................... (184) 56 (120)
Other operating activities ...................................... (31) (114) (18)
Net cash from operating activities .................................... 8,426 1,123 5,589
Cash Flows From Investing Activities:
Capital expenditures .................................................. (2,636) (2,820) (3,085)
Proceeds from disposals of property, plant and equipment .................... 147 85 75
Purchases of marketable securities and short-term investments ................. (3,391) (9,017) (9,056)
Sales and maturities of marketable securities and short-term investments ......... 3,113 9,638 9,538
Net (increase) decrease in finance receivables .............................. (49) (39) 68
Other investing activities ............................................... (363) (46) 120
Net cash (used in) investing activities ................................. (3,179) (2,199) (2,340)
Cash Flows From Financing Activities:
Net change in short-term debt ........................................... (2,016) 2,613 (513)
Proceeds from long-term borrowings ..................................... 3,613 4,094 649
Repayments of long-term borrowings ..................................... (2,518) (198) (90)
Purchases of common stock ............................................ (3,570) (2,639) (2,460)
Issuances of common stock ............................................. 169 174 164
Dividends .......................................................... (2,219) (1,703) (1,577)
Other financing activities .............................................. (161) (44) (24)
Net cash provided by (used in) financing activities ...................... (6,702) 2,297 (3,851)
Effect Of Exchange Rate Changes On Cash And Cash Equivalents .............. (65) 12 27
Net Increase (Decrease) In Cash And Cash Equivalents ........................ (1,520) 1,233 (575)
Cash And Cash Equivalents:
Beginning of period ................................................... 2,027 794 1,369
End of period ........................................................ $ 507 $2,027 $ 794
Cash Paid During The Period For:
Interest (net of amount capitalized) ....................................... $ 359 $ 248 $ 210
Income taxes ........................................................ $ 760 $1,351 $ 2,061
See notes to consolidated financial statements.
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