Cisco 2004 Annual Report Download - page 37

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Years Ended July 31, 2004 July 26, 2003 July 27, 2002
Cash flows from operating activities:
Net income $ 4,401 $ 3,578 $ 1,893
Adjustments to reconcile net income to net cash provided by operating activities:
Cumulative effect of accounting change, net of tax 567 ——
Depreciation and amortization 1,443 1,591 1,957
Provision for doubtful accounts 19 (59) 91
Provision for inventory 205 70 131
Deferred income taxes 552 (14) (573)
Tax benefits from employee stock option plans 537 132 61
In-process research and development 3453
Net (gains) losses and impairment charges on investments (155) 520 1,127
Change in operating assets and liabilities:
Accounts receivable (488) (125) 270
Inventories (538) (17) 673
Prepaid expenses and other current assets (42) (61) (28)
Accounts payable 54 35 (174)
Income taxes payable 260 (125) 389
Accrued compensation (7) 104 307
Deferred revenue 688 (84) 678
Other accrued liabilities (378) (309) (268)
Net cash provided by operating activities 7,121 5,240 6,587
Cash flows from investing activities:
Purchases of short-term investments (12,206) (9,396) (5,473)
Proceeds from sales and maturities of short-term investments 13,570 10,319 5,868
Purchases of investments (20,848) (18,063) (15,760)
Proceeds from sales and maturities of investments 20,757 12,497 15,317
Purchases of restricted investments —— (291)
Proceeds from sales and maturities of restricted investments —— 1,471
Acquisition of property and equipment (613) (717) (2,641)
Acquisition of businesses, net of cash and cash equivalents (104) 33 16
Change in lease receivables, net (159) 79 380
Change in investments in privately held companies (13) (223) (58)
Lease deposits —— 320
Purchase of minority interest of Cisco Systems, K.K. (Japan) (71) (59) (115)
Other 153 94 159
Net cash provided by (used in) investing activities 466 (5,436) (807)
Cash flows from financing activities:
Issuance of common stock 1,257 578 655
Repurchase of common stock (9,080) (5,984) (1,854)
Other 33 43 30
Net cash used in financing activities (7,790) (5,363) (1,169)
Net (decrease) increase in cash and cash equivalents (203) (5,559) 4,611
Cash and cash equivalents, beginning of fiscal year 3,925 9,484 4,873
Cash and cash equivalents, end of fiscal year $3,722 $3,925 $9,484
See Notes to Consolidated Financial Statements.
40 CISCO SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)