3M 2006 Annual Report Download - page 66

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
Consolidated Statement of Cash Flows
3M Company and Subsidiaries     
Years ended December 31
(Dollars in millions) 2006 2005 2004
  
Cash Flows from Operating Activities  
Net income $ 3,851 $ 3,111 $ 2,841
Adjustments to reconcile net income   
to net cash provided by operating activities
Depreciation and amortization 1,079 986 999
Company pension and postretirement contributions (385) (788) (759)
Company pension and postretirement expense 440 437 435
Stock-based compensation expense 200 155 252
Gain from sale of pharmaceuticals business (1,074) ±±
Deferred income taxes (316) 132 243
Excess tax benefits from stock-based compensation (60) (54) (54)
Changes in assets and liabilities  
Accounts receivable (103) (184) 56
Inventories (309) (294) 7
Accounts payable 68 113 35
Accrued income taxes 138 270 83
Product and other insurance receivables and claims 58 122 12
 2WKHU±QHW 252 198 78
Net cash provided by operating activities 3,839 4,204 4,228
 
Cash Flows from Investing Activities 
Purchases of property, plant and equipment (PP&E) (1,168) (943) (937)
Proceeds from sale of PP&E and other assets 49 41 69
Acquisitions, net of cash acquired (888) (1,293) (73)
Purchases of marketable securities and investments (3,253) (1,627) (10)
Proceeds from sale of marketable securities and investments 2,287 1,573 13
Proceeds from maturities of marketable securities 304 8 ±
Proceeds from sale of pharmaceuticals business 1,209 ±±
Net cash used in investing activities (1,460) (2,241) (938)
 
Cash Flows from Financing Activities
 &KDQJHLQVKRUWWHUPGHEW±QHW 882 (258) 399
Repayment of debt (maturities greater than 90 days) (440) (656) (868)
Proceeds from debt (maturities greater than 90 days) 693 429 358
Purchases of treasury stock (2,351) (2,377) (1,791)
Reissuances of treasury stock 523 545 508
Dividends paid to stockholders (1,376) (1,286) (1,125)
Distributions to minority interests (38) (56) (11)
Excess tax benefits from stock-based compensation 60 54 54
 2WKHU±QHW (14) (20) (4)
Net cash used in financing activities (2,061) (3,625) (2,480)
  
Effect of exchange rate changes on cash
and cash equivalents 57 (23) 111
Net increase/(decrease) in cash and cash equivalents 375 (1,685) 921
Cash and cash equivalents at beginning of year 1,072 2,757 1,836
Cash and cash equivalents at end of year $1,447 $1,072 $2,757
The accompanying Notes to Consolidated Financial Statements are an integral part of this statement.