EMC 2007 Annual Report Download - page 51

EMC CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Year Ended December 31,
2007 2006 2005
Cash flows from operating activities:
Cash received from customers $ 13,333,489 $11,167,249 $ 9,732,761
Cash paid to suppliers and employees (10,182,600) (8,666,586) (7,539,855)
Dividends and interest received 254,062 258,631 249,208
Interest paid (76,025) (26,804) (9,132)
Income taxes paid (202,324) (592,066) (216,686)
Net cash provided by operating activities 3,126,602 2,140,424 2,216,296
Cash flows from investing activities:
Additions to property, plant and equipment (699,038) (718,095) (601,145)
Capitalized software development costs (232,047) (192,895) (167,109)
Purchases of short and long-term available for sale securities (6,204,762) (6,611,698) (12,115,524)
Sales of short and long-term available for sale securities 6,177,552 7,758,144 12,726,160
Maturities of short and long-term available for sale securities 349,475 107,120 257,751
Proceeds from the sale of portion of EMC's interest in VMware to Cisco 150,000 — —
Business acquisitions, net of cash acquired (692,003) (2,618,376) (683,663)
Other (12,074) (20,860) (28,155)
Net cash used in investing activities (1,162,897) (2,296,660) (611,685)
Cash flows from financing activities:
Issuance of common stock from the exercise of stock options 782,449 257,789 263,296
Proceeds from the sale of VMware's common stock 1,253,533 — —
Issuance of VMware's common stock from the exercise of stock options 2,760 — —
Repurchase of EMC common stock (1,453,669) (3,655,404) (1,003,419)
Excess tax benefits from stock-based compensation 91,782 20,025 —
Payment of long-term and short-term obligations (17,178) (2,331,587) (3,721)
Proceeds from long-term and short-term obligations 19,815 5,654,004 220
Purchase of call options — (669,076) —
Sale of warrants — 391,144 —
Debt issuance costs — (58,863) —
Net cash provided by (used in) financing activities 679,492 (391,968) (743,624)
Effect of exchange rate changes on cash 10,908 53,940 (15,420)
Net increase (decrease) in cash and cash equivalents 2,654,105 (494,264) 845,567
Cash and cash equivalents at beginning of year 1,828,106 2,322,370 1,476,803
Cash and cash equivalents at end of year $ 4,482,211 $ 1,828,106 $ 2,322,370
Reconciliation of net income to net cash provided by operating activities:
Net income $ 1,665,668 $ 1,227,601 $ 1,133,165
Adjustments to reconcile net income to net cash provided by operating activities:
Cumulative effect of a change in accounting principle — (247) —
Minority interest in VMware, net of taxes 15,455 — —
Gain on sale of VMware stock to Cisco (148,585) — —
Depreciation and amortization 917,274 764,162 639,974
Non-cash restructuring and other special charges 3,778 75,889 17,370
Stock-based compensation expense 367,404 398,687 81,578
Increase in provision for doubtful accounts 8,885 10,290 9,750
Deferred income taxes, net (68,397) (131,966) (3,173)
Excess tax benefits from stock-based compensation (91,782) (20,025) —
Tax benefit from stock options exercised — — 42,593
Other 3,850 27,271 56,594
Changes in assets and liabilities, net of acquisitions:
Accounts and notes receivable (576,422) (232,295) (221,507)
Inventories 13,574 (69,567) (180,442)
Other assets (86,022) (31,822) (65,150)