EMC 2009 Annual Report Download - page 46

Table of Contents
EMC CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Year Ended December 31,
2009 2008 2007
(As Adjusted) (As Adjusted)
Cash flows from operating activities:
Cash received from customers $ 14,647,691 $ 15,378,081 $ 13,333,489
Cash paid to suppliers and employees (11,032,859) (11,747,031) (10,182,600)
Dividends and interest received 109,525 240,031 254,062
Interest paid (73,430) (73,695) (76,025)
Income taxes paid (316,542) (232,298) (202,324)
Net cash provided by operating activities 3,334,385 3,565,088 3,126,602
Cash flows from investing activities:
Additions to property, plant and equipment (411,579) (695,899) (699,038)
Capitalized software development costs (304,520) (294,973) (232,047)
Purchases of short and long-term available-for-sale securities (5,409,540) (3,318,545) (6,204,762)
Sales of short and long-term available-for-sale securities 5,171,449 3,189,547 6,177,552
Maturities of short and long-term available-for-sale securities 704,653 204,091 349,475
Proceeds from the sale of portion of EMC's interest in VMware to Cisco — — 150,000
Business acquisitions, net of cash acquired (2,664,141) (725,521) (692,003)
Increase in strategic and other related investments (182,994) (5,510) (12,074)
Other 1,184 31,878 —
Net cash used in investing activities (3,095,488) (1,614,932) (1,162,897)
Cash flows from financing activities:
Issuance of EMC's common stock 366,361 241,060 782,449
Issuance of VMware's common stock from the exercise of stock options 227,666 190,107 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 —
Repayments of proceeds from securities lending (412,321) — —
Repurchase of EMC's common stock — (1,489,501) (1,453,669)
Excess tax benefits from stock-based compensation 46,082 97,705 91,782
Payment of long-term and short-term obligations (20,835) (6,151) (17,178)
Proceeds from long-term and short-term obligations 4,969 33,707 19,815
Net cash provided by (used in) financing activities 211,922 (534,011) 679,492
Effect of exchange rate changes on cash 7,995 (54,671) 10,908
Net increase in cash and cash equivalents 458,814 1,361,474 2,654,105
Cash and cash equivalents at beginning of year 5,843,685 4,482,211 1,828,106
Cash and cash equivalents at end of year $ 6,302,499 $ 5,843,685 $ 4,482,211
Reconciliation of net income to net cash provided by operating activities:
Net income $ 1,121,801 $ 1,319,829 $ 1,614,420
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sale of VMware stock to Cisco — — (148,585)
Depreciation and amortization 1,073,135 1,057,511 917,274
Non-cash interest expense on convertible debt 108,347 102,581 96,938
Non-cash restructuring and other special charges 25,050 139,193 3,778
Stock-based compensation expense 600,537 501,439 367,404
Provision for doubtful accounts 14,351 34,667 8,885
Deferred income taxes, net 27,198 4,629 (98,632)
Excess tax benefits from stock-based compensation (46,082) (97,705) (91,782)
Gain on Data Domain and SpringSource common stock (25,822) — —
Other (13,906) (13,471) 3,850
Changes in assets and liabilities, net of acquisitions:
Accounts and notes receivable 241,069 73,184 (576,422)
Inventories (158,482) 165,813 13,574
Other assets 3,600 (16,178) (86,022)
Accounts payable 140,376 (148,821) 155,296
Accrued expenses (80,642) 8,688 35,934
Income taxes payable (91,142) 44,821 243,216
Deferred revenue 366,361 394,067 670,820
Other liabilities 28,636 (5,159) (3,344)
Net cash provided by operating activities $ 3,334,385 $ 3,565,088 $ 3,126,602