Dow Chemical 2012 Annual Report Download - page 98

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The Dow Chemical Company and Subsidiaries
Consolidated Statements of Cash Flows
(In millions) For the years ended December 31 2012 2011 2010
Operating Activities
Net income $ 1,100 $ 2,784 $ 2,321
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 2,698 2,883 2,962
Provision (Credit) for deferred income tax (465) 1 328
Earnings of nonconsolidated affiliates less than (in excess of) dividends received 287 (207) (444)
Pension contributions (903) (806) (708)
Net gain on sales of investments (19) (39) —
Net gain on sales of property, businesses and consolidated companies (74) (25) (95)
Other net (gain) loss 48 10 (12)
Net gain on sales of ownership interest in nonconsolidated affiliates — (61) (25)
Goodwill impairment loss 220 — —
Restructuring charges 1,343 — 26
Loss on early extinguishment of debt 123 482 46
Asbestos-related credit — — (54)
Excess tax benefits from share-based payment arrangements (76) (23) (20)
Changes in assets and liabilities, net of effects of acquired and divested companies:
Accounts and notes receivable (2,534) (2,184) (1,209)
Proceeds from interests in trade accounts receivable conduits 2,650 1,737 1,038
Inventories (871) (702) (750)
Accounts payable 261 376 495
Other assets and liabilities 287 (347) 203
Cash provided by operating activities 4,075 3,879 4,102
Investing Activities
Capital expenditures (2,614) (2,687) (2,130)
Construction of assets pending sale / leaseback — (113) —
Proceeds from sale / leaseback of assets — 119 —
Proceeds from sales of property and businesses 77 670 1,877
Acquisitions of businesses (2) (8) (8)
Purchases of previously leased assets — (30) (45)
Investments in consolidated companies, net of cash acquired (37) (218) (215)
Proceeds from sales of consolidated companies — 56 74
Investments in and loans to nonconsolidated affiliates (285) (248) (107)
Distributions and loan repayments from nonconsolidated affiliates 130 295 29
Proceeds from sales of ownership interests in nonconsolidated affiliates — 93 113
Change in restricted cash — — 436
Purchases of investments (509) (797) (946)
Proceeds from sales and maturities of investments 553 874 1,057
Cash provided by (used in) investing activities (2,687) (1,994) 135
Financing Activities
Changes in short-term notes payable (116) (844) (700)
Proceeds from notes payable ——84
Payments on notes payable — — (668)
Proceeds from issuance of long-term debt 3,347 3,624 3,131
Payments on long-term debt (3,988) (5,337) (1,387)
Purchases of treasury stock — (19) (14)
Proceeds from issuance of common stock 295 236 181
Proceeds from sales of common stock — 98 109
Issuance costs for debt and equity securities (22) (27) (12)
Excess tax benefits from share-based payment arrangements 76 23 20
Distributions to noncontrolling interests (72) (42) (8)
Contribution from noncontrolling interests — 184 100
Dividends paid to stockholders (2,050) (1,258) (1,014)
Cash used in financing activities (2,530) (3,362) (178)
Effect of Exchange Rate Changes on Cash 16 (121) 88
Cash Assumed in Initial Consolidation of Variable Interest Entities — 3 46
Summary
Increase (Decrease) in cash and cash equivalents (1,126) (1,595) 4,193
Cash and cash equivalents at beginning of year 5,444 7,039 2,846
Cash and cash equivalents at end of year $ 4,318 $ 5,444 $ 7,039
See Notes to the Consolidated Financial Statements.