3M 2007 Annual Report Download - page 49

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43
Consolidated Statement of Cash Flows
3M Company and Subsidiaries
Years ended December 31
(Millions) 2007 2006 2005
Cash Flows from Operating Activities
Net income $4,096 $3,851 $3,111
Adjustments to reconcile net income
to net cash provided by operating activities
Depreciation and amortization 1,072 1,079 986
Company pension and postretirement contributions (379) (385) (788)
Company pension and postretirement expense 255 440 437
Stock-based compensation expense 228 200 155
Gain from sale of businesses (849) (1,074) –
Deferred income taxes 11 (316) 132
Excess tax benefits from stock-based compensation (74) (60) (54)
Changes in assets and liabilities
Accounts receivable (35) (103) (184)
Inventories (54) (309) (294)
Accounts payable (4) 68
113
Accrued income taxes (45) 138
270
Product and other insurance receivables and claims 158 58
122
Other – net (105) 252 198
Net cash provided by operating activities 4,275
3,839
4,204
Cash Flows from Investing Activities
Purchases of property, plant and equipment (PP&E) (1,422) (1,168) (943)
Proceeds from sale of PP&E and other assets 103 49 41
Acquisitions, net of cash acquired (539) (888) (1,293)
Purchases of marketable securities and investments (8,194) (3,253) (1,627)
Proceeds from sale of marketable securities and investments 6,902 2,287 1,573
Proceeds from maturities of marketable securities 886 304 8
Proceeds from sale of businesses 897 1,209 –
Net cash used in investing activities (1,367) (1,460) (2,241)
Cash Flows from Financing Activities
Change in short-term debt – net (1,222) 882 (258)
Repayment of debt (maturities greater than 90 days) (1,580) (440) (656)
Proceeds from debt (maturities greater than 90 days) 4,024 693 429
Purchases of treasury stock (3,239) (2,351) (2,377)
Reissuances of treasury stock 796 523 545
Dividends paid to stockholders (1,380) (1,376) (1,286)
Distributions to minority interests (20) (38) (56)
Excess tax benefits from stock-based compensation 74 60 54
Other – net – (14) (20)
Net cash used in financing activities (2,547) (2,061) (3,625)
Effect of exchange rate changes on cash
and cash equivalents 88 57 (23)
Net increase/(decrease) in cash and cash equivalents 449 375 (1,685)
Cash and cash equivalents at beginning of year 1,447 1,072 2,757
Cash and cash equivalents at end of year $1,896 $1,447 $1,072
The accompanying Notes to Consolidated Financial Statements are an integral part of this statement.