Medtronic 2011 Annual Report Download - page 54

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50 Medtronic, Inc.
Consolidated Statements of Cash Flows
Fiscal Year
(in millions) 2011 2010 2009
Operating Activities:
Net earnings $ 3,096 $ 3,099 $ 2,070
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 804 772 699
Amortization of discount on senior convertible notes 171 167 154
Acquisition-related items 44 11 621
Provision for doubtful accounts 47 36 23
Deferred income taxes 153 144 (171)
Stock-based compensation 198 225 237
Excess tax benefit from exercise of stock-based awards — — (24)
Change in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable, net (342) (271) 108
Inventories (101) 158 (212)
Accounts payable and accrued liabilities (37) 225 510
Other operating assets and liabilities (532) 130 (147)
Certain litigation charges, net 245 374 714
Certain litigation payments (5) (939) (704)
Net cash provided by operating activities 3,741 4,131 3,878
Investing Activities:
Acquisitions, net of cash acquired (1,332) (350) (1,624)
Purchase of intellectual property (47) (62) (165)
Additions to property, plant, and equipment (501) (573) (498)
Purchases of marketable securities (6,249) (7,478) (2,960)
Sales and maturities of marketable securities 6,443 3,791 2,845
Other investing activities, net (129) (87) (338)
Net cash used in investing activities (1,815) (4,759) (2,740)
Financing Activities:
Change in short-term borrowings, net 1,621 (444) (633)
Issuance of long-term debt 1,000 3,000 1,250
Payments on long-term debt (2,603) (20) (300)
Dividends to shareholders (969) (907) (843)
Issuance of common stock85 165 416
Excess tax benefit from exercise of stock-based awards — — 24
Repurchase of common stock(1,140) (1,030) (759)
Net cash provided by (used in) financing activities (2,006) 764 (845)
Effect of exchange rate changes on cash and cash equivalents 62(7) (82)
Net change in cash and cash equivalents (18) 129 211
Cash and cash equivalents at beginning of period 1,400 1,271 1,060
Cash and cash equivalents at end of period $ 1,382 $ 1,400 $ 1,271
Supplemental Cash Flow Information
Cash paid for:
Income taxes $ 826 $ 571 $ 436
Interest 447 386 208
Supplemental noncash financing activities:
Reclassification of debentures from short-term to long-term debt $ — $ — $ 15
Reclassification of senior notes from long-term to short-term debt — 400 —
Reclassification of senior convertible notes from long-term to short-term debt — 2,200 —
The accompanying notes are an integral part of these consolidated financial statements.