Xerox 2008 Annual Report Download - page 51

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Xerox Corporation
Consolidated Statements of Cash Flows
Year Ended December 31,
(in millions) 2008 2007 2006
Cash Flows from Operating Activities:
Net income $ 230 $ 1,135 $ 1,210
Adjustments required to reconcile net income to cash flows from operating activities:
Depreciation and amortization 669 656 636
Provisions for receivables and inventory 314 197 145
Deferred tax (benefit) expense (324) 224 99
Net gain on sales of businesses and assets (21) (7) (44)
Undistributed equity in net income of unconsolidated affiliates (53) (60) (70)
Stock-based compensation 85 89 64
Provision for litigation, net 781 ——
Payments for securities litigation, net (615) ——
Restructuring and asset impairment charges 429 (6) 385
Payments for restructurings (131) (235) (265)
Contributions to pension benefit plans (299) (298) (355)
Decrease (increase) in accounts receivable and billed portion of finance receivables 57 (79) (30)
(Increase) decrease in inventories (114) (43) 11
Increase in equipment on operating leases (331) (331) (271)
Decrease in finance receivables 164 119 192
(Increase) decrease in other current and long-term assets (8) 130 64
Increase in accounts payable and accrued compensation 211 285 330
(Decrease) increase in other current and long-term liabilities (174) 38 (70)
Net change in income tax assets and liabilities (92) 73 (459)
Net change in derivative assets and liabilities 230 (10) 9
Other, net (69) (6) 36
Net cash provided by operating activities 939 1,871 1,617
Cash Flows from Investing Activities:
Cost of additions to land, buildings and equipment (206) (236) (215)
Proceeds from sales of land, buildings and equipment 38 25 82
Cost of additions to internal use software (129) (123) (79)
Acquisitions, net of cash acquired (155) (1,615) (229)
Net change in escrow and other restricted investments 8200 38
Other, net 3137 260
Net cash used in investing activities (441) (1,612) (143)
Cash Flows from Financing Activities:
Net debt payments on secured financings (227) (1,869) (1,591)
Net proceeds on other debt 926 1,814 1,276
Payment of liability to subsidiary trust issuing preferred securities —— (100)
Common stock dividends (154) ——
Preferred stock dividends —— (43)
Proceeds from issuances of common stock 665 82
Excess tax benefits from stock-based compensation 222 25
Payments to acquire treasury stock, including fees (812) (632) (1,069)
Repurchases related to stock-based compensation (33) ——
Other (19) (19) (8)
Net cash used in financing activities (311) (619) (1,428)
Effect of exchange rate changes on cash and cash equivalents (57) 60 31
Increase (decrease) in cash and cash equivalents 130 (300) 77
Cash and cash equivalents at beginning of year 1,099 1,399 1,322
Cash and cash equivalents at end of year $1,229 $ 1,099 $ 1,399
The accompanying notes are an integral part of these Consolidated Financial Statements.
Xerox 2008 Annual Report 49