Baker Hughes 2007 Annual Report Download - page 126

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2007 Form 10-K 43
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
(In millions) 2007 2006 2005
Cash flows from operating activities:
Income from continuing operations $ 1,513.9 $ 2,398.6 $ 874.4
Adjustments to reconcile income from continuing operations
to net cash flows from operating activities:
Depreciation and amortization 521.2 433.7 382.4
Amortization of net deferred gains on derivatives (5.1) (5.1) (5.7)
Stock-based compensation costs 50.9 46.0 9.2
Acquired in-process research and development – 2.6 5.1
(Benefit)/provision for deferred income taxes (3.7) 77.7 7.4
Gain on sale of interest in affiliate – (1,743.5) –
Provision for income taxes on gain on sale of interest in affiliate – 708.3 –
Gain on disposal of assets (78.8) (59.2) (34.8)
Equity in income of affiliates (1.2) (60.4) (100.1)
Changes in operating assets and liabilities:
Accounts receivable (287.3) (316.4) (329.4)
Inventories (141.8) (364.9) (108.7)
Accounts payable 25.9 69.1 122.3
Accrued employee compensation and other accrued liabilities (138.9) 104.1 92.4
Income taxes payable 129.1 (98.0) 54.9
Income taxes paid on sale of interest in affiliate (125.3) (555.1) –
Liabilities for pensions and other postretirement benefits and other liabilities (4.3) 57.4 41.7
Other 20.1 (105.2) (61.5)
Net cash flows from continuing operations 1,474.7 589.7 949.6
Net cash flows from discontinued operations – 0.4 5.8
Net cash flows from operating activities 1,474.7 590.1 955.4
Cash flows from investing activities:
Expenditures for capital assets (1,127.0) (922.2) (478.3)
Purchase of short-term investments (2,520.7) (3,882.9) (77.0)
Proceeds from maturities of short-term investments 2,838.8 3,606.2 –
Proceeds from disposal of assets 178.8 135.4 90.1
Proceeds from sale of interests in affiliates 9.9 2,400.0 –
Acquisition of businesses, net of cash acquired – (66.2) (46.8)
Distributions from affiliates – 59.6 30.0
Receipt of true-up payment related to affiliate – – 13.0
Proceeds from sale of business – 46.3 3.7
Net cash flows from continuing operations (620.2) 1,376.2 (465.3)
Net cash flows from discontinued operations – – (0.1)
Net cash flows from investing activities (620.2) 1,376.2 (465.4)
Cash flows from financing activities:
Net (repayments) borrowings of commercial paper and other short-term debt 14.2 (8.8) (71.1)
Payment to terminate interest rate swap agreement – – (5.5)
Proceeds from issuance of common stock 67.7 92.5 228.1
Repurchase of common stock (521.5) (1,856.0) (98.5)
Dividends (166.2) (172.6) (161.1)
Excess tax benefits from stock-based compensation 13.8 18.5 –
Net cash flows from financing activities (592.0) (1,926.4) (108.1)
Effect of foreign exchange rate changes on cash 41.9 13.1 (3.9)
Increase in cash and cash equivalents 304.4 53.0 378.0
Cash and cash equivalents, beginning of year 750.0 697.0 319.0
Cash and cash equivalents, end of year $ 1,054.4 $ 750.0 $ 697.0
Income taxes paid $ 716.7 $ 1,197.5 $ 299.7
Interest paid $ 75.9 $ 74.4 $ 80.8
See Notes to Consolidated Financial Statements