consolidated statements of cash flows

(dollars in millions)

Years Ended December 31,

 

2011

 

 

2010

 

 

2009

 

Cash Flows from Operating Activities

 

 

 

 

 

 

 

 

 

Net Income

$

10,198

 

$

10,217

 

$

11,601

 

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

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

16,496

 

 

16,405

 

 

16,534

 

Employee retirement benefits

 

7,426

 

 

3,988

 

 

2,964

 

Deferred income taxes

 

(223

)

 

3,233

 

 

2,093

 

Provision for uncollectible accounts

 

1,026

 

 

1,246

 

 

1,306

 

Equity in earnings of unconsolidated businesses, net of dividends received

 

36

 

 

2

 

 

389

 

Changes in current assets and liabilities, net of effects

 

 

 

 

 

 

 

 

 

from acquisition/disposition of businesses

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(966

)

 

(859

)

 

(1,393

)

Inventories

 

208

 

 

299

 

 

235

 

Other assets

 

86

 

 

(313

)

 

(102

)

Accounts payable and accrued liabilities

 

(1,607

)

 

1,075

 

 

(1,251

)

Other, net

 

(2,900

)

 

(1,930

)

 

(986

)

Net cash provided by operating activities

 

29,780

 

 

33,363

 

 

31,390

 

 

Cash Flows from Investing Activities

 

 

 

 

 

 

 

 

 

Capital expenditures (including capitalized software)

 

(16,244

)

 

(16,458

)

 

(16,872

)

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

 

(2,018

)

 

(1,438

)

 

(5,958

)

Proceeds from dispositions

 

 

 

2,594

 

 

 

Net change in short-term investments

 

35

 

 

(3

)

 

84

 

Other, net

 

977

 

 

251

 

 

(410

)

Net cash used in investing activities

 

(17,250

)

 

(15,054

)

 

(23,156

)

 

Cash Flows from Financing Activities

 

 

 

 

 

 

 

 

 

Proceeds from long-term borrowings

 

11,060

 

 

 

 

12,040

 

Repayments of long-term borrowings and capital lease obligations

 

(11,805

)

 

(8,136

)

 

(19,260

)

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

 

1,928

 

 

(1,097

)

 

(1,652

)

Dividends paid

 

(5,555

)

 

(5,412

)

 

(5,271

)

Proceeds from sale of common stock

 

241

 

 

 

 

 

Proceeds from access line spin-off

 

 

 

3,083

 

 

 

Other, net

 

(1,705

)

 

(2,088

)

 

(1,864

)

Net cash used in financing activities

 

(5,836

)

 

(13,650

)

 

(16,007

)

 

Increase (decrease) in cash and cash equivalents

 

6,694

 

 

4,659

 

 

(7,773

)

Cash and cash equivalents, beginning of period

 

6,668

 

 

2,009

 

 

9,782

 

Cash and cash equivalents, end of period

$

13,362

 

$

6,668

 

$

2,009

 

See Notes to Consolidated Financial Statements