Xerox 2007 Annual Report Download - page 81

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XEROX CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
(in millions) 2007 2006 2005
Cash Flows from Operating Activities:
Net income .......................................................................... $1,135 $ 1,210 $ 978
Adjustments required to reconcile net income to cash flows from operating activities:
Depreciation and amortization .................................................... 656 636 641
Provisions for receivables and inventory ............................................ 197 145 107
Deferred tax expense (benefit) .................................................... 224 99 (15)
Net gain on sales of businesses and assets ......................................... (7) (44) (97)
Undistributed equity in net income of unconsolidated affiliates ...................... (60) (70) (54)
Stock-based compensation ....................................................... 89 64 40
Restructuring and asset impairment charges ....................................... (6) 385 366
Cash payments for restructurings .................................................. (235) (265) (214)
Contributions to pension benefit plans ............................................. (298) (355) (388)
(Increase) decrease in inventories ................................................. (43) 11 (162)
Increase in equipment on operating leases ......................................... (331) (271) (248)
Decrease in finance receivables ................................................... 119 192 254
Increase in accounts receivable and billed portion of finance receivables .............. (79) (30) (34)
Decrease in other current and long-term assets ..................................... 130 64 160
Increase in accounts payable and accrued compensation ............................ 285 330 313
Net change in income tax assets and liabilities ...................................... 73 (459) (211)
Net change in derivative assets and liabilities ....................................... (10) 9 38
Increase (decrease) in other current and long-term liabilities ......................... 38 (70) 7
Other, net ....................................................................... (6) 36 (61)
Net cash provided by operating activities ...................................... 1,871 1,617 1,420
Cash Flows from Investing Activities:
Purchases of short-term investments ............................................... (18) (162) (386)
Proceeds from sales of short-term investments ...................................... 155 269 139
Cost of additions to land, buildings and equipment .................................. (236) (215) (181)
Proceeds from sales of land, buildings and equipment ............................... 25 82 5
Cost of additions to internal use software .......................................... (123) (79) (56)
Proceeds from divestitures and investments, net .................................... – 153 105
Acquisitions, net of cash acquired ................................................. (1,615) (229) (1)
Net change in escrow and other restricted investments .............................. 200 38 80
Net cash used in investing activities ........................................... (1,612) (143) (295)
Cash Flows from Financing Activities:
Cash proceeds from new secured financings ........................................ 62 121 557
Debt payments on secured financings ............................................. (1,931) (1,712) (1,879)
Net cash proceeds (payments) on other debt ....................................... 1,814 1,276 (1,187)
Payment of liability to subsidiary trust issuing preferred securities .................... – (100) –
Preferred stock dividends ......................................................... – (43) (58)
Proceeds from issuances of common stock ......................................... 65 82 40
Excess tax benefits from stock-based compensation ................................. 22 25 –
Payments to acquire treasury stock, including fees .................................. (632) (1,069) (433)
Other ........................................................................... (19) (8) (2)
Net cash used in financing activities ........................................... (619) (1,428) (2,962)
Effect of exchange rate changes on cash and cash equivalents ........................... 60 31 (59)
(Decrease) increase in cash and cash equivalents ........................................ (300) 77 (1,896)
Cash and cash equivalents at beginning of year ......................................... 1,399 1,322 3,218
Cash and cash equivalents at end of year ............................................. $ 1,099 $ 1,399 $ 1,322
The accompanying notes are an integral part of these Consolidated Financial Statements.
Xerox Annual Report 2007 79