Xerox 2002 Annual Report Download - page 42

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40
Consolidated Statements of Cash Flows
Year ended December 31 (in millions) 2002 2001 2000
Cash Flows from Operating Activities:
Net income (loss) $91 $ (94) $ (273)
Adjustments required to reconcile net income (loss)
to cash flows from operating activities:
Depreciation and amortization 1,035 1,332 1,244
Impairment of goodwill 63 ––
Provisions for receivables and inventory 468 748 848
Restructuring and other charges 670 715 502
Deferred tax benefit (178) (10) (130)
Cash payments for restructurings (392) (484) (387)
Gain on early extingushment of debt (1) (63) –
Gains on sales of businesses and assets (1) (765) (288)
Undistributed equity in income of affiliated companies (23) (20) (25)
Decrease in inventories 16 319 74
Increase in on-lease equipment (127) (271) (506)
Decrease (increase) in finance receivables 754 88 (701)
(Increase) decrease in accounts receivable and billed portion of
finance receivables (266) 189 (385)
Proceeds from sale of accounts receivable, net –– 328
Increase (decrease) in accounts payable and accrued
compensation and benefits costs 192 (270) 59
(Decrease) increase in income tax liabilities (204) 452 (291)
(Decrease) increase in other current and long-term liabilities (254) (160) 55
Early termination of derivative contracts 39 (148) (108)
Other, net (6) 8 191
Net cash provided by operating activities 1,876 1,566 207
Cash Flows from Investing Activities:
Cost of additions to land, buildings and equipment (146) (219) (452)
Proceeds from sales of land, buildings and equipment 19 69 44
Cost of additions to internal use software (50) (124) (211)
Proceeds from divestitures 340 1,768 640
Acquisitions, net of cash acquired (4) 18 (856)
Funds released from (placed in) escrow and other restricted cash, net 41 (628) –
Other, net (3) (11) (20)
Net cash provided by (used in) investing activities 197 873 (855)
Cash Flows from Financing Activities:
Cash proceeds from new secured financings 3,055 2,418 411
Debt payments on secured financings (1,662) (1,068) (532)
Other changes in debt, net (4,619) (2,448) 3,038
Proceeds from issuance of mandatorily redeemable preferred securities –1,004 –
Dividends on common and preferred stock (67) (93) (587)
Proceeds from issuances of common stock 428 –
Settlements of equity put options, net –(28) (68)
Dividends to minority shareholders (3) (2) (7)
Net cash (used in) provided by financing activities (3,292) (189) 2,255
Effect of exchange rate changes on cash and cash equivalents 116 (10) 11
(Decrease) increase in cash and cash equivalents (1,103) 2,240 1,618
Cash and cash equivalents at beginning of year 3,990 1,750 132
Cash and cash equivalents at end of year $ 2,887 $ 3,990 $1,750
The accompanying notes are an integral part of the consolidated financial statements.