Progress Energy 2004 Annual Report Download - page 60

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Consolidated Financial Statements
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Years ended December 31 2004 2003 2002
Operating Activities
Net income $759 $782 $528
Adjustments to reconcile net income to net cash provided by operating activities
(Income) loss from discontinued operations (6) 824
Net (gain) loss on sale of operating assets (57) 1–
Impairment of long-lived assets and investments –38 389
Cumulative effect of changes in accounting principles –21 –
Depreciation and amortization 1,181 1,146 1,099
Deferred income taxes (74) (276) (402)
Investment tax credit (14) (16) (18)
Deferred fuel credit (19) (133) (37)
Cash provided (used) by changes in operating assets and liabilities
Receivables (35) (158) (50)
Inventory (108) 8 (66)
Prepayments and other current assets (18) 39 (24)
Accounts payable 33 37 100
Other current liabilities 82 121 56
Regulatory assets and liabilities (284) (21) 46
Other 167 127 (18)
Net Cash Provided by Operating Activities 1,607 1,724 1,627
Investing Activities
Gross utility property additions (998) (972) (1,169)
Diversified business property additions (236) (584) (558)
Nuclear fuel additions (101) (117) (81)
Proceeds from sales of subsidiaries and other investments 366 579 43
Acquisition of businesses, net of cash –– (365)
Purchases of short-term investments (2,108) (2,813) (2,962)
Proceeds from sales of short-term investments 2,252 2,587 2,962
Acquisition of intangibles (1) (200) (10)
Other (46) (26) (61)
Net Cash Used in Investing Activities (872) (1,546) (2,201)
Financing Activities
Issuance of common stock, net 73 304 687
Issuance of long-term debt, net 421 1,539 1,783
Net increase (decrease) in short-term indebtedness 680 (696) (247)
Retirement of long-term debt (1,353) (810) (1,157)
Dividends paid on common stock (558) (541) (480)
Other 17 12 (5)
Net Cash (Used in) Provided by Financing Activities (720) (192) 581
Net Increase (Decrease) in Cash and Cash Equivalents 15 (14) 7
Cash and Cash Equivalents at Beginning of Year 47 61 54
Cash and Cash Equivalents at End of Year $62 $47 $61
Supplemental Disclosures of Cash Flow Information
Cash paid during the year – interest (net of amount capitalized) $657 $643 $651
– income taxes (net of refunds) $189 $177 $219
Noncash Activities
•In April 2002, Progress Fuels Corporation, a subsidiary of the Company, acquired 100% of Westchester Gas Company. In conjunction with
the purchase, the Company issued approximately $129 million in common stock (See Note 5D).
•In December 2003, Progress Telecommunications Corporation (PTC) and Caronet, Inc., both indirectly wholly owned subsidiaries of
Progress Energy, and EPIK Communications, Inc., a wholly owned subsidiary of Odyssey Telecorp, Inc., contributed substantially all of their
assets and transferred certain liabilities to Progress Telecom, LLC, a subsidiary of PTC (See Note 5A).
See Notes to Consolidated Financial Statements. 58