Lockheed Martin 2007 Annual Report Download - page 72

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Lockheed Martin Corporation
Consolidated Statement of Cash Flows
Year ended December 31,
(In millions) 2007 2006 2005
Operating Activities
Net earnings $ 3,033 $ 2,529 $ 1,825
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization of property, plant and equipment 666 600 555
Amortization of purchased intangibles 153 164 150
Stock-based compensation 149 111 —
Excess tax benefits on stock-based compensation (124) (129) —
Deferred income taxes 110 75 24
Changes in operating assets and liabilities:
Receivables (324) 94 (390)
Inventories (57) (530) (39)
Accounts payable (66) 217 239
Customer advances and amounts in excess of costs incurred 394 475 296
Other 307 177 534
Net cash provided by operating activities 4,241 3,783 3,194
Investing Activities
Expenditures for property, plant and equipment (940) (893) (865)
Acquisitions of businesses / investments in affiliates (337) (1,122) (564)
Divestitures of businesses / investments in affiliates 26 180 935
Sale (purchase) of short-term investments, net 48 48 (33)
Other (2) 132 28
Net cash used for investing activities (1,205) (1,655) (499)
Financing Activities
Issuances of common stock 350 627 406
Excess tax benefits on stock-based compensation 124 129 —
Repurchases of common stock (2,127) (2,115) (1,310)
Common stock dividends (615) (538) (462)
Repayments of long-term debt (32) (210) (145)
Premium and transaction costs for debt exchange —(353) —
Net cash used for financing activities (2,300) (2,460) (1,511)
Net increase (decrease) in cash and cash equivalents 736 (332) 1,184
Cash and cash equivalents at beginning of year 1,912 2,244 1,060
Cash and cash equivalents at end of year $ 2,648 $ 1,912 $ 2,244
See accompanying Notes to Consolidated Financial Statements.
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