Medtronic 2009 Annual Report Download - page 56

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52 Medtronic, Inc.
Consolidated Statements of Cash Flows
Fiscal Year
(in millions) 2009 2008 2007
Operating Activities:
Net earnings $ 2,169 $ 2,231 $ 2,802
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 699 637 583
Special charges —78 98
IPR&D charges 621 390 —
Provision for doubtful accounts 23 31 31
Deferred income taxes (116) (49) (236)
Stock-based compensation 237 217 185
Excess tax benefit from exercise of stock-based awards (24) (40) (36)
Change in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable 108 (461) (326)
Inventories (212) 30 (24)
Prepaid expenses and other assets (121) 92 (45)
Accounts payable and accrued liabilities 520 61 17
Other operating assets and liabilities (26) 272 (70)
Net cash provided by operating activities 3,878 3,489 2,979
Investing Activities:
Acquisitions, net of cash acquired (1,624) (4,221) (8)
Purchase of intellectual property (165) (93) (121)
Additions to property, plant and equipment (498) (513) (573)
Purchases of marketable securities (2,960) (6,433) (11,837)
Sales and maturities of marketable securities 2,845 8,557 10,894
Other investing activities, net (338) (87) (56)
Net cash used in investing activities (2,740) (2,790) (1,701)
Financing Activities:
Change in short-term borrowings, net (633) 543 45
Payments on long-term debt (300) (12) (1,880)
Issuance of long-term debt 1,250 300 —
Dividends to shareholders (843) (565) (504)
Issuance of common stock under stock purchase and award plans 416 403 331
Excess tax benefit from exercise of stock-based awards 24 40 36
Repurchase of common stock (759) (1,544) (1,039)
Net cash used in financing activities (845) (835) (3,011)
Effect of exchange rate changes on cash and cash equivalents (82) (60) (5)
Net change in cash and cash equivalents 211 (196) (1,738)
Cash and cash equivalents at beginning of period 1,060 1,256 2,994
Cash and cash equivalents at end of period $ 1,271 $ 1,060 $ 1,256
Supplemental Cash Flow Information
Cash paid for:
Income taxes $ 436 $ 717 $ 1,034
Interest 208 258 230
Supplemental noncash investing and financing activities:
Reclassification of debentures from short-term to long-term debt $ 15 $ — $ 94
Reclassification of debentures from long-term to short-term debt —94 —
The accompanying notes are an integral part of these consolidated financial statements.