Dow Chemical 2009 Annual Report Download - page 111

Table of Contents
The Dow Chemical Company and Subsidiaries
Consolidated Statements of Cash Flows
(In millions) For the years ended December 31 2009 2008 2007
Operating Activities
Net Income $ 676 $ 654 $ 2,985
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 2,827 2,236 2,190
Purchased in-process research and development charges 7 44 57
Provision (Credit) for deferred income tax (652) (260) 494
Earnings of nonconsolidated affiliates less than (in excess of) dividends received 60 49 (348)
Pension contributions (355) (185) (183)
Net loss (gain) on sales of investments (9) 1 (143)
Net gain on sales of property, businesses and consolidated companies (256) (127) (108)
Other net loss (gain) (22) 15 (75)
Net gain on sales of ownership interest in nonconsolidated affiliates (795) - -
Goodwill impairment losses 7 239 -
Restructuring charges 684 837 577
Asbestos-related credit - (54) -
Excess tax benefits from share-based payment arrangements (10) (8) (31)
Changes in assets and liabilities, net of effects of acquired and divested companies:
Accounts and notes receivable (990) 2,853 (1,002)
Inventories 63 812 (712)
Accounts payable 304 (1,062) 799
Other assets and liabilities 536 (1,333) (16)
Cash provided by operating activities 2,075 4,711 4,484
Investing Activities
Capital expenditures (1,410) (2,276) (2,075)
Capital expenditures of consolidated variable interest entity (273) - -
Proceeds from sales of property and businesses 294 252 211
Acquisitions of businesses (35) - (143)
Purchases of previously leased assets (713) (63) (30)
Investments in consolidated companies, net of cash acquired (15,045) (336) (867)
Proceeds from sales of consolidated companies 1,563 66 -
Investments in nonconsolidated affiliates (122) (331) (78)
Distributions from nonconsolidated affiliates 9 6 63
Proceeds from sales of ownership interests in nonconsolidated affiliates 1,413 - 30
Purchase of unallocated Rohm and Haas ESOP shares (552) - -
Purchases of investments (580) (855) (1,952)
Proceeds from sales and maturities of investments 684 800 1,983
Cash used in investing activities (14,767) (2,737) (2,858)
Financing Activities
Changes in short-term notes payable (418) 825 1,220
Proceeds from revolving credit facility 3,000 - -
Payments on revolving credit facility (3,000) - -
Proceeds from Term Loan 9,226 - -
Payments on Term Loan (9,226) - -
Proceeds from issuance of long-term debt 8,283 1,453 21
Payments on long-term debt (1,790) (760) (1,354)
Redemption of preferred securities of subsidiaries and payment of accrued dividends (520) - -
Purchases of treasury stock (5) (898) (1,462)
Proceeds from issuance of common stock 966 - -
Proceeds from issuance of preferred stock 7,000 - -
Proceeds from sales of common stock 555 72 379
Issuance costs for debt and equity securities (368) (70) -
Excess tax benefits from share-based payment arrangements 10 8 31
Distributions to noncontrolling interests (24) (45) (51)
Dividends paid to stockholders (1,030) (1,563) (1,512)
Cash provided by (used in) financing activities 12,659 (978) (2,728)
Effect of Exchange Rate Changes on Cash 79 68 81
Summary
Increase (Decrease) in cash and cash equivalents 46 1,064 (1,021)
Cash and cash equivalents at beginning of year 2,800 1,736 2,757
Cash and cash equivalents at end of year $ 2,846 $ 2,800 $ 1,736
See Notes to the Consolidated Financial Statements.