Pfizer 2007 Annual Report Download - page 44

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Consolidated Statements of Cash Flows
Pfizer Inc and Subsidiary Companies
YEAR ENDED DECEMBER 31,
________________________________________________________________
(MILLIONS OF DOLLARS) 2007 2006 2005
Operating Activities
Net income $ 8,144 $ 19,337 $ 8,085
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 5,200 5,293 5,576
Share-based compensation expense 437 655 157
Acquisition-related in-process research and development charges 283 835 1,652
Intangible asset impairments and other associated non-cash charges 2,220 320 1,240
Gains on disposals (326) (280) (172)
(Gains)/losses on sales of discontinued operations 168 (10,243) (77)
Cumulative effect of a change in accounting principles ——40
Deferred taxes from continuing operations (2,788) (1,525) (1,465)
Other deferred taxes —(420) 8
Other non-cash adjustments 815 606 486
Changes in assets and liabilities, net of effect of businesses acquired and divested:
Accounts receivable (320) (172) (803)
Inventories 720 118 72
Prepaid and other assets (647) 314 615
Accounts payable and accrued liabilities 1,509 (450) (1,054)
Income taxes payable (2,002) 2,909 254
Other liabilities (60) 297 119
Net cash provided by operating activities 13,353 17,594 14,733
Investing Activities
Purchases of property, plant and equipment (1,880) (2,050) (2,106)
Purchases of short-term investments (25,426) (9,597) (28,040)
Proceeds from sales and redemptions of short-term investments 30,288 20,771 26,779
Purchases of long-term investments (1,635) (1,925) (687)
Proceeds from sales and redemptions of long-term investments 172 233 1,309
Purchases of other assets (111) (153) (431)
Proceeds from sales of other assets 30 312
Proceeds from sales of businesses, products and product lines 24 200 127
Acquisitions, net of cash acquired (464) (2,320) (2,104)
Other investing activities (203) (61) 69
Net cash provided by/(used in) investing activities 795 5,101 (5,072)
Financing Activities
Increase in short-term borrowings, net 3,155 1,040 1,124
Principal payments on short-term borrowings (764) (11,969) (1,427)
Proceeds from issuances of long-term debt 2,573 1,050 1,021
Principal payments on long-term debt (64) (55) (1,039)
Purchases of common stock (9,994) (6,979) (3,797)
Cash dividends paid (7,975) (6,919) (5,555)
Stock option transactions and other 459 732 451
Net cash used in financing activities (12,610) (23,100) (9,222)
Effect of exchange-rate changes on cash and cash equivalents 41 (15) —
Net increase/(decrease) in cash and cash equivalents 1,579 (420) 439
Cash and cash equivalents at beginning of year 1,827 2,247 1,808
Cash and cash equivalents at end of year $ 3,406 $ 1,827 $ 2,247
Supplemental Cash Flow Information
Non-cash transactions:
Sale of the Consumer Healthcare business(a) $— $ 16,429 $ —
Cash paid during the period for:
Income taxes $ 5,617 $ 3,443 $ 4,713
Interest 643 715 649
(a) Reflects portion of proceeds received in the form of short-term investments.
See Notes to Consolidated Financial Statements, which are an integral part of these statements.
42 2007 Financial Report