EMC 2002 Annual Report Download - page 44

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Table of Contents
EMC CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Year Ended December 31,
2002 2001 2000
Cash flows from operating activities:
Net income (loss) $ (118,706) $ (507,712) $ 1,782,075
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization 653,686 654,698 516,798
Non-cash restructuring, inventory and other special charges (reversals) (26,027) 449,364 21,000
Other than temporary declines in equity investments 6,315 106,560 —
Amortization of deferred compensation 13,077 19,514 27,027
Provision for doubtful accounts 35,171 32,711 27,537
Deferred income taxes, net 74,088 (227,429) 35,349
Net loss on disposal of property, plant and equipment 26,405 2,282 18,523
Tax benefit from stock options exercised 34,291 137,901 207,694
Minority interest — 29 2,235
Changes in assets and liabilities, net of acquisitions:
Accounts and notes receivable 435,613 806,002 (647,577)
Inventories 240,377 127,581 (406,985)
Other assets 64,918 (19,303) (155,306)
Accounts payable 4,240 (78,429) 147,675
Accrued expenses (74,886) 201,301 200,033
Income taxes payable (158,308) (157,007) 228,089
Deferred revenue 236,813 69,637 109,594
Other liabilities (1,333) 13,558 (5,105)
Net cash provided by operating activities 1,445,734 1,631,258 2,108,656
Cash flows from investing activities:
Additions to property, plant and equipment (391,076) (889,309) (858,423)
Proceeds from sales of property, plant and equipment 6 17,310 200
Capitalized software development costs (126,678) (120,724) (102,772)
Purchases of short and long-term available for sale securities (8,437,486) (4,981,376) (2,644,077)
Sales of short and long-term available for sale securities 7,199,476 4,445,271 1,961,208
Maturities of short and long-term available for sale securities 226,408 126,683 35,000
Purchase of other assets (25,050) — —
Business acquisitions, net of cash acquired (21,993) (111,455) (233,554)
Net cash used in investing activities (1,576,393) (1,513,600) (1,842,418)
Cash flows from financing activities:
Issuance of common stock 80,924 170,284 234,057
Issuance of subsidiary's stock — — 376,607
Purchase of treasury stock (363,923) (18,258) —
Cash portion of McData Corporation spinoff dividend — (141,981) —
Redemption of 6% convertible subordinated notes due 2004 — — (155)
Payment of long-term and short-term obligations (29,694) (16,859) (10,244)
Issuance of long-term and short-term obligations 1,516 40,206 11,392
Net cash (used in) provided by financing activities (311,177) 33,392 611,657
Effect of exchange rate changes on cash (585) (5,252) (4,083)
Net (decrease) increase in cash and cash equivalents (442,421) 145,798 873,812
Cash and cash equivalents at beginning of year 2,129,019 1,983,221 1,109,409
Cash and cash equivalents at end of year $ 1,686,598 $ 2,129,019 $ 1,983,221
Non-cash activity:
– Exchange of net assets for equity investment $ 3,560 $ — $ —
– Conversion of convertible subordinated notes, net of debt issuance costs — — 665,397
– Issuance of capital lease obligations — 24,490 —
– Options associated with business acquisitions — 1,050 11,372