Consolidated Statements of Cash Flows
(dollars in millions) |
|||||||||
Years Ended December 31, |
2007 |
2006 |
2005 |
||||||
|---|---|---|---|---|---|---|---|---|---|
|
|||||||||
Cash Flows from Operating Activities |
|||||||||
Net Income |
$ |
5,521 |
|
$ |
6,197 |
|
$ |
7,397 |
|
Adjustments to reconcile net income to net cash provided by |
|||||||||
operating activities — continuing operations: |
|||||||||
Depreciation and amortization expense |
|
14,377 |
|
|
14,545 |
|
|
13,615 |
|
Sales of businesses, net |
|
— |
|
|
— |
|
|
(530 |
) |
Loss on sale of discontinued operations |
|
— |
|
|
541 |
|
|
— |
|
Employee retirement benefits |
|
1,720 |
|
|
1,923 |
|
|
1,695 |
|
Deferred income taxes |
|
408 |
|
|
(252 |
) |
|
(1,093 |
) |
Provision for uncollectible accounts |
|
1,047 |
|
|
1,034 |
|
|
1,076 |
|
Equity in earnings of unconsolidated businesses, net of dividends received |
|
1,986 |
|
|
(731 |
) |
|
1,649 |
|
Extraordinary item, net of tax |
|
131 |
|
|
— |
|
|
— |
|
Cumulative effect of accounting change, net of tax |
|
— |
|
|
42 |
|
|
— |
|
Changes in current assets and liabilities, net of effects |
|||||||||
from acquisition/disposition of businesses: |
|||||||||
Accounts receivable |
|
(1,931 |
) |
|
(1,312 |
) |
|
(788 |
) |
Inventories |
|
(255 |
) |
|
8 |
|
|
(236 |
) |
Other assets |
|
(140 |
) |
|
52 |
|
|
(176 |
) |
Accounts payable and accrued liabilities |
|
(567 |
) |
|
(383 |
) |
|
(899 |
) |
Other, net |
|
4,012 |
|
|
1,366 |
|
|
(1,266 |
) |
Net cash provided by operating activities — continuing operations |
|
26,309 |
|
|
23,030 |
|
|
20,444 |
|
Net cash provided by (used in) operating activities — |
|||||||||
discontinued operations |
|
(570 |
) |
|
1,076 |
|
|
1,581 |
|
Net cash provided by operating activities |
|
25,739 |
|
|
24,106 |
|
|
22,025 |
|
|
|||||||||
Cash Flows from Investing Activities |
|||||||||
Capital expenditures (including capitalized software) |
|
(17,538 |
) |
|
(17,101 |
) |
|
(14,964 |
) |
Acquisitions, net of cash acquired, and investments |
|
(763 |
) |
|
(1,422 |
) |
|
(4,684 |
) |
Proceeds from disposition of businesses |
|
— |
|
|
— |
|
|
1,326 |
|
Net change in short-term and other current investments |
|
169 |
|
|
290 |
|
|
(346 |
) |
Other, net |
|
1,267 |
|
|
811 |
|
|
532 |
|
Net cash used in investing activities — continuing operations |
|
(16,865 |
) |
|
(17,422 |
) |
|
(18,136 |
) |
Net cash provided by (used in) investing activities — |
|||||||||
discontinued operations |
|
757 |
|
|
1,806 |
|
|
(356 |
) |
Net cash used in investing activities |
|
(16,108 |
) |
|
(15,616 |
) |
|
(18,492 |
) |
|
|||||||||
Cash Flows from Financing Activities |
|||||||||
Proceeds from long-term borrowings |
|
3,402 |
|
|
3,983 |
|
|
1,487 |
|
Repayments of long-term borrowings and capital lease obligations |
|
(5,503 |
) |
|
(11,233 |
) |
|
(3,825 |
) |
Increase (decrease) in short-term obligations, excluding current maturities |
|
(3,252 |
) |
|
7,944 |
|
|
2,098 |
|
Dividends paid |
|
(4,773 |
) |
|
(4,719 |
) |
|
(4,427 |
) |
Proceeds from sale of common stock |
|
1,274 |
|
|
174 |
|
|
37 |
|
Purchase of common stock for treasury |
|
(2,843 |
) |
|
(1,700 |
) |
|
(271 |
) |
Other, net |
|
(2 |
) |
|
(201 |
) |
|
(57 |
) |
Net cash used in financing activities — continuing operations |
|
(11,697 |
) |
|
(5,752 |
) |
|
(4,958 |
) |
Net cash used in financing activities — discontinued operations |
|
— |
|
|
(279 |
) |
|
(76 |
) |
Net cash used in financing activities |
|
(11,697 |
) |
|
(6,031 |
) |
|
(5,034 |
) |
|
|||||||||
Increase (decrease) in cash and cash equivalents |
|
(2,066 |
) |
|
2,459 |
|
|
(1,501 |
) |
Cash and cash equivalents, beginning of year |
|
3,219 |
|
|
760 |
|
|
2,261 |
|
Cash and cash equivalents, end of year |
$ |
1,153 |
|
$ |
3,219 |
|
$ |
760 |
|
See Notes to Consolidated Financial Statements.