3M 2011 Annual Report Download - page 55

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Consolidated Statement of Cash Flows
3M Company and Subsidiaries
Years ended December 31
(Millions) 2011 2010 2009
Cash Flows from Operating Activities
Net income including noncontrolling interest .......................... $ 4,357 $ 4,163 $ 3,244
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djustments to reconcile net income including noncontrolling
interest to net cash provided by operating activities ............
Depreciation and amortization ............................................. 1,236 1,120 1,157
Company pension and postretirement contributions ........... (582 ) (618) (792 )
Company pension and postretirement expense .................. 555 322 223
Stock-based compensation expense ................................... 253 274 217
Deferred income taxes ........................................................ 177 (170) 701
Excess tax benefits from stock-based compensation ......... (53 ) (53) (14 )
Changes in assets and liabilities .........................................
Accounts receivable ......................................................... (205 ) (189) 55
Inventories ........................................................................ (196 ) (404) 453
Accounts payable ............................................................. (83 ) 146 109
Accrued income taxes (current and long-term) ................ (45 ) 255 (147 )
Product and other insurance receivables and claims ...... 9 49 64
Other — net ......................................................................... (139 ) 279 (329 )
Net cash provided by operating activities ................................ 5,284 5,174 4,941
Cash Flows from Investing Activities
Purchases of property, plant and equipment (PP&E) ............. (1,379 ) (1,091) (903 )
Proceeds from sale of PP&E and other assets ....................... 55 25 74
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cquisitions, net of cash acquired ........................................... (649 ) (1,830) (69 )
Purchases of marketable securities and investments ............. (4,162 ) (3,287) (2,240 )
Proceeds from sale of marketable securities and investments 1,679 1,995 718
Proceeds from maturities of marketable securities ................. 1,738 1,565 683
Other investing ........................................................................ — (3) 5
Net cash used in investing activities ....................................... (2,718 ) (2,626) (1,732 )
Cash Flows from Financing Activities
Change in short-term debt — net ............................................ 11 (24) (536 )
Repayment of debt (maturities greater than 90 days) ............. (1,429 ) (556) (519 )
Proceeds from debt (maturities greater than 90 days) ............ 1,111 108 41
Purchases of treasury stock .................................................... (2,701 ) (854) (17 )
Proceeds from issuances of treasury stock pursuant to stock
option and benefit plans ...................................................... 902 666 431
Dividends paid to shareholders ............................................... (1,555 ) (1,500) (1,431 )
Excess tax benefits from stock-based compensation ............. 53 53 14
Other — net ............................................................................. (67 ) (77) 3
Net cash used in financing activities ....................................... (3,675 ) (2,184) (2,014 )
Effect of exchange rate changes on cash and cash equivalents (49 ) (27) (4 )
Net increase/(decrease) in cash and cash equivalents .......... (1,158 ) 337 1,191
Cash and cash equivalents at beginning of year .................... 3,377 3,040 1,849
Cash and cash equivalents at end of year .............................. $ 2,219 $ 3,377 $ 3,040
The accompanying Notes to Consolidated Financial Statements are an integral part of this statement.