Xerox 2004 Annual Report Download - page 42

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40
Consolidated Statements of Cash Flows
Year ended December 31, (in millions) 2004 2003 2002
Cash Flows from Operating Activities
Net income $859 $360 $ 91
Adjustments required to reconcile net income
to cash flows from operating activities:
Depreciation and amortization 686 748 1,035
Provisions for receivables and inventory 159 302 468
Deferred tax expense (benefit) 155 (70) (178)
Net gains on sales of businesses, assets and affiliate’s sale of stock (61) (1) (1)
Undistributed equity in net income of unconsolidated affiliates (89) (37) (23)
Loss (gain) on early extinguishment of debt —73 (1)
Gain on sale of ContentGuard (83) ——
Impairment of goodwill ——63
Restructuring and other charges 86 176 670
Cash payments for restructurings (187) (345) (392)
Contributions to pension benefit plans (409) (672) (138)
Early termination of derivative contracts 74 136 56
(Increase) decrease in inventories (38) 62 16
Increase in on-lease equipment (234) (166) (127)
Decrease in finance receivables 337 496 754
Decrease (increase) in accounts receivable and billed portion of
finance receivables 224 164 (266)
Increase in accounts payable and accrued benefits 333 408 398
Net change in income tax assets and liabilities (68) (3) (260)
Decrease in other current and long-term liabilities (79) (37) (177)
Other, net 85 285 (8)
Net cash provided by operating activities 1,750 1,879 1,980
Cash Flows from Investing Activities
Cost of additions to land, buildings and equipment (204) (197) (146)
Proceeds from sales of land, buildings and equipment 53 10 19
Cost of additions to internal use software (48) (53) (50)
Proceeds from divestitures and investments, net 191 35 340
Acquisitions, net of cash acquired (12) — —
Net change in escrow and other restricted investments 223 254 (63)
Other, net –– (7)
Net cash provided byinvesting activities 203 49 93
Cash Flows from Financing Activities
Cash proceeds from new secured financings 2,061 2,450 3,055
Debt payments on secured financings (1,906) (2,181) (1,662)
Net cash payments on debt (1,422) (4,044) (4,619)
Proceeds from issuance of mandatorily redeemable preferred stock —889 –
Preferred stock dividends (83) (57) (67)
Proceeds from issuances of common stock 73 477 4
Dividends to minority shareholders (16) (4) (3)
Net cash used in financing activities (1,293) (2,470) (3,292)
Effect of exchange rate changes on cash and cash equivalents 81 132 116
Increase (decrease) in cash and cash equivalents 741 (410) (1,103)
Cash and cash equivalents at beginning of year 2,477 2,887 3,990
Cash and cash equivalents at end of year $ 3,218 $ 2,477 $ 2,887
The accompanying notes are an integral part of the Consolidated Financial Statements.