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.