Xerox 2006 Annual Report Download - page 54

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XEROX CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year ended December 31,
(in millions) 2006 2005 2004
Cash Flows from Operating Activities:
Net income ........................................................................ $1,210 $ 978 $ 859
Adjustments required to reconcile net income to cash flows from operating activities:
Depreciation and amortization ..................................................... 636 641 688
Provisions for receivables and inventory ............................................. 145 107 159
Deferred tax expense (benefit) .................................................... 99 (15) 155
Net gain on sales of businesses and assets ........................................... (44) (97) (61)
Undistributed equity in net income of unconsolidated affiliates ........................... (70) (54) (89)
Income from discontinued operations ............................................... — (53) (83)
Stock-based compensation ....................................................... 64 40 22
Restructuring and asset impairment charges .......................................... 385 366 86
Cash payments for restructurings .................................................. (265) (214) (187)
Contributions to pension benefit plans .............................................. (355) (388) (409)
Decrease (increase) in inventories .................................................. 11 (162) (38)
Increase in equipment on operating leases ........................................... (271) (248) (234)
Decrease in finance receivables .................................................... 192 254 337
(Increase) decrease in accounts receivable and billed portion of finance receivables .......... (30) (34) 224
Decrease in other current and long-term assets ........................................ 64 160 107
Increase in accounts payable and accrued compensation ................................ 330 313 333
Net change in income tax assets and liabilities ........................................ (459) (211) (68)
Net change in derivative assets and liabilities ......................................... 9 38 (23)
(Decrease) increase in other current and long-term liabilities ............................. (70) 7 (79)
Other, net ..................................................................... 36 (8) 51
Net cash provided by operating activities ........................................ 1,617 1,420 1,750
Cash Flows from Investing Activities:
Purchases of short-term investments ................................................ (162) (386) —
Proceeds from sales of short-term investments ........................................ 269 139 —
Cost of additions to land, buildings and equipment .................................... (215) (181) (204)
Proceeds from sales of land, buildings and equipment .................................. 82 5 53
Cost of additions to internal use software ............................................ (79) (56) (48)
Proceeds from divestitures and investments, net ....................................... 153 105 191
Acquisitions, net of cash acquired .................................................. (229) (1) (12)
Net change in escrow and other restricted investments .................................. 38 80 223
Net cash (used in) provided by investing activities ................................. (143) (295) 203
Cash Flows from Financing Activities:
Cash proceeds from new secured financings .......................................... 121 557 2,061
Debt payments on secured financings ............................................... (1,712) (1,879) (1,906)
Net cash proceeds (payments) on other debt .......................................... 1,276 (1,187) (1,422)
Payments of liability to subsidiary trusts issuing preferred securities ....................... (100) — —
Preferred stock dividends ........................................................ (43) (58) (83)
Proceeds from issuances of common stock ........................................... 82 40 73
Excess tax benefits from stock-based compensation .................................... 25 — —
Payments to acquire treasury stock ................................................. (1,069) (433) —
Other ........................................................................ (8) (2) (16)
Net cash used in financing activities ............................................ (1,428) (2,962) (1,293)
Effect of exchange rate changes on cash and cash equivalents ................................ 31 (59) 81
Increase (decrease) in cash and cash equivalents .......................................... 77 (1,896) 741
Cash and cash equivalents at beginning of year ........................................... 1,322 3,218 2,477
Cash and cash equivalents at end of year .............................................. $ 1,399 $ 1,322 $ 3,218
The accompanying notes are an integral part of these Consolidated Financial Statements.
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