Consolidated Statements of Cash Flows – As Adjusted

(dollars in millions)

Years Ended December 31,

 

2010

 

 

2009

 

 

2008

 

Cash Flows from Operating Activities

 

 

 

 

 

 

 

 

 

Net Income

$

10,217

 

$

11,601

 

$

3,962

 

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization expense

 

16,405

 

 

16,534

 

 

14,610

 

Employee retirement benefits

 

3,988

 

 

2,964

 

 

16,077

 

Deferred income taxes

 

3,233

 

 

2,093

 

 

(3,468

)

Provision for uncollectible accounts

 

1,246

 

 

1,306

 

 

1,085

 

Equity in earnings of unconsolidated businesses, net of dividends received

 

2

 

 

389

 

 

212

 

Changes in current assets and liabilities, net of effects

from acquisition/disposition of businesses:

Accounts receivable

 

(859

)

 

(1,393

)

 

(1,085

)

Inventories

 

299

 

 

235

 

 

(188

)

Other assets

 

(313

)

 

(102

)

 

(59

)

Accounts payable and accrued liabilities

 

1,075

 

 

(1,251

)

 

(1,701

)

Other, net

 

(1,930

)

 

(986

)

 

(1,993

)

Net cash provided by operating activities

 

33,363

 

 

31,390

 

 

27,452

 

 

Cash Flows from Investing Activities

Capital expenditures (including capitalized software)

 

(16,458

)

 

(16,872

)

 

(17,133

)

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

 

(1,438

)

 

(5,958

)

 

(15,904

)

Proceeds from dispositions

 

2,594

 

 

 

 

 

Net change in short-term investments

 

(3

)

 

84

 

 

1,677

 

Other, net

 

251

 

 

(410

)

 

(114

)

Net cash used in investing activities

 

(15,054

)

 

(23,156

)

 

(31,474

)

 

 

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

 

 

 

 

 

Proceeds from long-term borrowings

 

 

 

12,040

 

 

21,598

 

Repayments of long-term borrowings and capital lease obligations

 

(8,136

)

 

(19,260

)

 

(4,146

)

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

 

(1,097

)

 

(1,652

)

 

2,389

 

Dividends paid

 

(5,412

)

 

(5,271

)

 

(4,994

)

Proceeds from access line spin-off

 

3,083

 

 

 

 

 

Proceeds from sale of common stock

 

 

 

 

 

16

 

Purchase of common stock for treasury

 

 

 

 

 

(1,368

)

Other, net

 

(2,088

)

 

(1,864

)

 

(844

)

Net cash provided by (used in) financing activities

 

(13,650

)

 

(16,007

)

 

12,651

 

 

Increase (decrease) in cash and cash equivalents

 

4,659

 

 

(7,773

)

 

8,629

 

Cash and cash equivalents, beginning of year

 

2,009

 

 

9,782

 

 

1,153

 

Cash and cash equivalents, end of year

$

6,668

 

$

2,009

 

$

9,782

 

See Notes to Consolidated Financial Statements