3M 2005 Annual Report Download - page 66

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40
Consolidated Statement of Cash Flows
3M Company and Subsidiaries
Years ended December 31
(Dollars in millions) 2005 2004 2003
Cash Flows from Operating Activities
Net income $3,199 $2,990 $2,403
Adjustments to reconcile net income
to net cash provided by operating activities
Depreciation and amortization 986 999 964
Company pension and postretirement contributions (788) (759) (943)
Company pension and postretirement expense 437 435 256
Deferred income tax provision 147 313 115
Changes in assets and liabilities
Accounts receivable (184) 56 38
Inventories (294) 7 281
Accounts payable 113 35 62
Accrued income taxes 270 83 424
Product and other insurance receivables and claims 122 12 (35)
Other – net 250 111 208
Net cash provided by operating activities 4,258 4,282 3,773
Cash Flows from Investing Activities
Purchases of property, plant and equipment (PP&E) (943) (937) (677)
Proceeds from sale of PP&E and other assets 41 69 129
Acquisitions, net of cash acquired (1,293) (73) (439)
Purchases of investments (1,627) (10) (16)
Proceeds from sale of investments 1,581 13 34
Net cash used in investing activities (2,241) (938) (969)
Cash Flows from Financing Activities
Change in short-term debt – net (258) 399 (215)
Repayment of debt (maturities greater than 90 days) (656) (868) (719)
Proceeds from debt (maturities greater than 90 days) 429 358 494
Purchases of treasury stock (2,377) (1,791) (685)
Reissuances of treasury stock 545 508 55
5
Dividends paid to stockholders (1,286) (1,125) (1,034)
Distributions to minority interests (56) (11) (13)
Other – net (20) (4) (10)
Net cash used in financing activities (3,679) (2,534) (1,627)
Effect of exchange rate changes on cash
and cash equivalents (23) 111 41
Net increase/(decrease) in cash and cash equivalents (1,685) 921 1,218
Cash and cash equivalents at beginning of year 2,757 1,836 618
Cash and cash equivalents at end of year $1,072 $2,757 $1,836
The accompanying Notes to Consolidated Financial Statements are an integral part of this statement.