Consolidated Statements of Cash Flows

(dollars in millions)

Years Ended December 31,

2009

 

2008

 

2007

 

Cash Flows from Operating Activities

Net Income

$

10,358

 

$

12,583

 

$

10,574

 

Adjustments to reconcile net income to net cash provided by

operating activities – continuing operations:

Depreciation and amortization expense

 

16,532

 

 

14,565

 

 

14,377

 

Employee retirement benefits

 

5,095

 

 

1,955

 

 

1,720

 

Deferred income taxes

 

1,384

 

 

2,183

 

 

408

 

Provision for uncollectible accounts

 

1,306

 

 

1,085

 

 

1,047

 

Equity in earnings of unconsolidated businesses, net of dividends received

 

389

 

 

212

 

 

1,986

 

Extraordinary item, net of tax

 

 

 

 

 

131

 

Changes in current assets and liabilities, net of effects

from acquisition/disposition of businesses:

Accounts receivable

 

(1,393

)

 

(1,085

)

 

(1,931

)

Inventories

 

235

 

 

(188

)

 

(255

)

Other assets

 

(102

)

 

(59

)

 

(140

)

Accounts payable and accrued liabilites

 

(1,251

)

 

(1,701

)

 

(567

)

Other, net

 

(988

)

 

(1,993

)

 

59

 

Net cash provided by operating activities – continuing operations

 

31,565

 

 

27,557

 

 

27,409

 

Net cash used in operating activities – discontinued operations

 

 

 

 

 

(570

)

Net cash provided by operating activities

 

31,565

 

 

27,557

 

 

26,839

 

 

Cash Flows from Investing Activities

Capital expenditures (including capitalized software)

 

(17,047

)

 

(17,238

)

 

(17,538

)

Acquisitions of licenses, investments and businesses, net of cash acquired

 

(5,958

)

 

(15,904

)

 

(763

)

Net change in short-term investments

 

84

 

 

1,677

 

 

169

 

Other, net

 

(410

)

 

(114

)

 

1,267

 

Net cash used in investing activities – continuing operations

 

(23,331

)

 

(31,579

)

 

(16,865

)

Net cash provided by investing activities – discontinued operations

 

 

 

 

 

757

 

Net cash used in investing activities

 

(23,331

)

 

(31,579

)

 

(16,108

)

 

Cash Flows from Financing Activities

Proceeds from long-term borrowings

 

12,040

 

 

21,598

 

 

3,402

 

Repayments of long-term borrowings and capital lease obligations

 

(19,260

)

 

(4,146

)

 

(5,503

)

Increase (decrease) in short-term obligations, excluding current maturities

 

(1,652

)

 

2,389

 

 

(3,252

)

Dividends paid

 

(5,271

)

 

(4,994

)

 

(4,773

)

Proceeds from sale of common stock

 

 

 

16

 

 

1,274

 

Purchase of common stock for treasury

 

 

 

(1,368

)

 

(2,843

)

Other, net

 

(1,864

)

 

(844

)

 

(1,102

)

Net cash provided by (used in) financing activities – continuing operations

 

(16,007

)

 

12,651

 

 

(12,797

)

Net cash used in financing activities – discontinued operations

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

(16,007

)

 

12,651

 

 

(12,797

)

 

Increase (decrease) in cash and cash equivalents

 

(7,773

)

 

8,629

 

 

(2,066

)

Cash and cash equivalents, beginning of year

 

9,782

 

 

1,153

 

 

3,219

 

Cash and cash equivalents, end of year

$

2,009

 

$

9,782

 

$

1,153

 

See Notes to Consolidated Financial Statements