Alcoa 2007 Annual Report Download - page 50

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Statement of Consolidated Cash Flows
(in millions)
Alcoa and subsidiaries
For the year ended December 31, 2007 2006 2005
Cash from Operations
Net income $ 2,564 $ 2,248 $ 1,233
Adjustments to reconcile net income to cash from operations:
Depreciation, depletion, and amortization 1,269 1,280 1,258
Deferred income taxes 248 (68) (16)
Equity (income) loss, net of dividends (116) (89) 35
Goodwill impairment charge (E) 133 ——
Restructuring and other charges (D) 399 543 292
Gains from investing activities—asset sales (O) (1,800) (25) (406)
Provision for doubtful accounts 15 22 19
Loss (income) from discontinued operations (B) 7(87) 22
Minority interests 365 436 259
Cumulative effect of accounting change (C) ——2
Stock-based compensation (R) 97 72 25
Excess tax benefits from stock-based payment arrangements (79) (17) —
Other (81) (222) 12
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign
currency translation adjustments:
Decrease (increase) in receivables 517 (109) (465)
Decrease (increase) in inventories 186 (509) (403)
(Increase) in prepaid expenses and other current assets (129) (175) (27)
Increase (decrease) in accounts payable and accrued expenses 79 (285) 656
(Decrease) increase in taxes, including taxes on income (169) 30 (124)
Cash received (paid) on long-term aluminum supply contract 93 — (93)
Pension contributions (322) (397) (383)
Net change in other noncurrent assets and liabilities (172) (41) (208)
Decrease (increase) in net assets held for sale 8(44) (44)
Cash provided from continuing operations 3,112 2,563 1,644
Cash (used for) provided from discontinued operations (1) 432
Cash provided from operations 3,111 2,567 1,676
Financing Activities
Net change in short-term borrowings 94 126 5
Net change in commercial paper (617) 560 282
Additions to long-term debt (K) 2,050 29 278
Debt issuance costs (K) (126) ——
Payments on long-term debt (K) (873) (36) (254)
Common stock issued for stock compensation plans 835 156 72
Excess tax benefits from stock-based payment arrangements 79 17 —
Repurchase of common stock (2,496) (290) (108)
Dividends paid to shareholders (590) (524) (524)
Dividends paid to minority interests (368) (400) (75)
Contributions from minority interests 474 342 —
Cash used for financing activities (1,538) (20) (324)
Investing Activities
Capital expenditures (3,636) (3,201) (2,116)
Capital expenditures of discontinued operations —(4) (22)
Acquisitions of minority interests (F and P) (3) (1) (199)
Acquisitions, net of cash acquired (F and P) (15) 8 (262)
Proceeds from the sale of assets and businesses 183 372 505
Additions to investments (131) (58) (30)
Sales of investments (I) 2,011 35 1,081
Net change in short-term investments and restricted cash 3(4) (8)
Other (37) 12 16
Cash used for investing activities (1,625) (2,841) (1,035)
Effect of exchange rate changes on cash and cash equivalents 29 38 (12)
Net change in cash and cash equivalents (23) (256) 305
Cash and cash equivalents at beginning of year 506 762 457
Cash and cash equivalents at end of year $ 483 $ 506 $ 762
The accompanying notes are an integral part of the consolidated financial statements.
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