EMC 2006 Annual Report Download - page 48

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Table of Contents
EMC CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Year Ended December 31,
2006
2005
2004
Cash flows from operating activities:
Cash received from customers $ 11,167,249 $ 9,732,761 $ 8,329,367
Cash paid to suppliers and employees (8,666,586) (7,539,855) (6,299,057)
Dividends and interest received 258,631 249,208 162,427
Interest paid (26,804) (9,132) (6,423)
Income taxes paid (592,066) (216,686) (84,019)
Net cash provided by operating activities 2,140,424 2,216,296 2,102,295
Cash flows from investing activities:
Additions to property, plant and equipment (718,095) (601,145) (371,449)
Capitalized software development costs (192,895) (167,109) (166,347)
Purchases of short and long-term available for sale securities (6,611,698) (12,115,524) (8,391,782)
Sales of short and long-term available for sale securities 7,758,144 12,726,160 7,450,027
Maturities of short and long-term available for sale securities 107,120 257,751 83,659
Business acquisitions, net of cash acquired (2,618,376) (683,663) (590,410)
Other (20,860) (28,155) (78,398)
Net cash used in investing activities (2,296,660) (611,685) (2,064,700)
Cash flows from financing activities:
Issuance of common stock 257,789 263,296 229,951
Repurchase of common stock (3,655,404) (1,003,419) (545,718)
Excess tax benefits from stock-based compensation 20,025 — —
Payment of short and long-term obligations (2,331,587) (3,721) (8,196)
Proceeds from short and long-term obligations 5,654,004 220 140
Purchase of call options (669,076) — —
Sale of warrants 391,144 — —
Debt issuance costs (58,863) — —
Net cash used in financing activities (391,968) (743,624) (323,823)
Effect of exchange rate changes on cash 53,940 (15,420) 10,055
Net (decrease) increase in cash and cash equivalents (494,264) 845,567 (276,173)
Cash and cash equivalents at beginning of year 2,322,370 1,476,803 1,752,976
Cash and cash equivalents at end of year $ 1,828,106 $ 2,322,370 $ 1,476,803
Reconciliation of net income to net cash provided by operating activities:
Net income $ 1,223,982 $ 1,133,165 $ 871,189
Adjustments to reconcile net income to net cash provided by operating activities:
Cumulative effect of a change in accounting principle 3,372 — —
Depreciation and amortization 764,162 639,974 616,357
Non-cash restructuring and other special charges 75,889 17,370 19,291
Stock-based compensation expense 398,687 81,578 59,715
Provision for doubtful accounts 10,290 9,750 10,067
Deferred income taxes, net (131,966) (3,173) 241,591
Tax benefit from stock options exercised — 42,593 46,302
Excess tax benefits from stock-based compensation (20,025) — —
Other 27,271 56,594 (2,143)
Changes in assets and liabilities, net of acquisitions:
Accounts and notes receivable (232,295) (221,507) (208,595)
Inventories (69,567) (180,442) 21,084
Other assets (31,822) (65,150) (20,554)
Accounts payable 59,631 12,186 108,827
Accrued expenses 133,856 153,622 75,346
Income taxes payable (297,936) 263,255 (58,612)