EMC 2008 Annual Report Download - page 54

Table of Contents
EMC CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Year Ended December 31,
2008 2007 2006
Cash flows from operating activities:
Cash received from customers $ 15,378,081 $ 13,333,489 $11,167,249
Cash paid to suppliers and employees (11,747,031) (10,182,600) (8,666,586)
Dividends and interest received 240,031 254,062 258,631
Interest paid (73,695) (76,025) (26,804)
Income taxes paid (232,298) (202,324) (592,066)
Net cash provided by operating activities 3,565,088 3,126,602 2,140,424
Cash flows from investing activities:
Additions to property, plant and equipment (695,899) (699,038) (718,095)
Capitalized software development costs (294,973) (232,047) (192,895)
Purchases of short and long-term available for sale securities (3,318,545) (6,204,762) (6,611,698)
Sales of short and long-term available for sale securities 3,189,547 6,177,552 7,758,144
Maturities of short and long-term available for sale securities 204,091 349,475 107,120
Proceeds from the sale of portion of EMC's interest in VMware to Cisco — 150,000 —
Business acquisitions, net of cash acquired (725,521) (692,003) (2,618,376)
Other 26,368 (12,074) (20,860)
Net cash used in investing activities (1,614,932) (1,162,897) (2,296,660)
Cash flows from financing activities:
Issuance of EMC's common stock from the exercise of stock options 241,060 782,449 257,789
Issuance of VMware's common stock from the exercise of stock options 190,107 2,760 —
Purchase of VMware's common stock (13,259) — —
Proceeds from the sale of VMware's common stock — 1,253,533 —
Proceeds from securities lending 412,321 — —
Repurchase of EMC's common stock (1,489,501) (1,453,669) (3,655,404)
Excess tax benefits from stock-based compensation 97,705 91,782 20,025
Payment of long-term and short-term obligations (6,151) (17,178) (2,331,587)
Proceeds from long-term and short-term obligations 33,707 19,815 5,654,004
Purchase of call options — — (669,076)
Sale of warrants — — 391,144
Debt issuance costs — — (58,863)
Net cash (used in) provided by financing activities (534,011) 679,492 (391,968)
Effect of exchange rate changes on cash (54,671) 10,908 53,940
Net increase (decrease) in cash and cash equivalents 1,361,474 2,654,105 (494,264)
Cash and cash equivalents at beginning of year 4,482,211 1,828,106 2,322,370
Cash and cash equivalents at end of year $ 5,843,685 $ 4,482,211 $ 1,828,106
Reconciliation of net income to net cash provided by operating activities:
Net income $ 1,345,567 $ 1,665,668 $ 1,227,601
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 44,725 15,455 —
Gain on sale of VMware stock to Cisco — (148,585) —
Depreciation and amortization 1,057,511 917,274 764,162
Non-cash restructuring and other special charges 139,193 3,778 75,889
Stock-based compensation expense 501,439 367,404 398,687
Provision for doubtful accounts 34,667 8,885 10,290
Deferred income taxes, net 36,747 (68,397) (131,966)
Excess tax benefits from stock-based compensation (97,705) (91,782) (20,025)
Other (13,471) 3,850 27,271
Changes in assets and liabilities, net of acquisitions:
Accounts and notes receivable 73,184 (576,422) (232,295)
Inventories 165,813 13,574 (69,567)
Other assets (16,178) (86,022) (31,822)
Accounts payable (148,821) 155,296 59,631
Accrued expenses 8,688 35,934 133,856
Income taxes payable 44,821 243,216 (297,936)