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Table of Contents
EMC CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Year Ended December 31,
2004 2003 2002
Cash flows from operating activities:
Cash received from customers $ 8,329,367 $ 6,693,785 $ 6,145,949
Cash paid to suppliers and employees (6,299,057) (5,507,699) (5,060,176)
Dividends and interest received 162,427 185,898 252,045
Interest paid (6,423) (3,067) (11,797)
Income taxes (paid) refunded (84,019) 152,313 119,713
Net cash provided by operating activities 2,102,295 1,521,230 1,445,734
Cash flows from investing activities:
Additions to property, plant and equipment (371,449) (368,545) (391,076)
Capitalized software development costs (166,347) (113,427) (126,678)
Purchases of short and long-term available for sale securities (8,391,782) (7,453,138) (9,972,491)
Sales of short and long-term available for sale securities 7,450,027 6,309,180 8,930,580
Maturities of short and long-term available for sale securities 83,659 304,407 226,409
Business acquisitions, net of cash (used) acquired (590,410) 323,930 (21,993)
Other (78,398) (61,801) (25,044)
Net cash used in investing activities (2,064,700) (1,059,394) (1,380,293)
Cash flows from financing activities:
Issuance of common stock 229,951 112,592 80,924
Purchase of treasury stock (545,718) (126,975) (363,923)
Payment of short and long-term obligations (8,196) (30,406) (29,694)
Issuance of short and long-term obligations 140 4,736 1,516
Net cash used in financing activities (323,823) (40,053) (311,177)
Effect of exchange rate changes on cash 10,055 14,848 (585)
Net (decrease) increase in cash and cash equivalents (276,173) 436,631 (246,321)
Cash and cash equivalents at beginning of year 1,752,976 1,316,345 1,562,666
Cash and cash equivalents at end of year $ 1,476,803 $ 1,752,976 $ 1,316,345
Reconciliation of net income (loss) to net cash provided by operating activities:
Net income (loss) $ 871,189 $ 496,108 $ (118,706)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization 616,357 520,698 653,686
Non-cash restructuring, and other special charges (reversals) 19,291 45,969 (26,027)
Amortization of deferred compensation 59,715 13,725 13,077
Provision for doubtful accounts 10,067 1,761 35,171
Deferred income taxes, net 241,591 (19,068) 74,088
Tax benefit from stock options exercised 46,302 10,515 34,291
Other (2,143) 9,256 32,720
Changes in assets and liabilities, net of acquisitions:
Accounts and notes receivable (208,595) 42,398 435,613
Inventories 21,084 (46,342) 240,377
Other assets (20,554) (25,760) 64,918
Accounts payable 108,827 (32,170) 4,240
Accrued expenses 75,346 (44,786) (74,886)
Income taxes payable (58,612) 230,156 (158,308)
Deferred revenue 298,407 412,818 236,813
Other liabilities 24,023 (94,048) (1,333)
Net cash provided by operating activities $ 2,102,295 $ 1,521,230 $ 1,445,734
Non-cash activity:
– Issuance of common stock and stock options exchanged in business combinations $ 73,351 $ 3,109,899 $ –
– Exchange of net assets for equity investment – – 3,560
The accompanying notes are an integral part of the consolidated financial statements.
49