Pfizer 2005 Annual Report Download - page 39

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38 2005 Financial Report
Consolidated Statements of Cash Flows
Pfizer Inc and Subsidiary Companies
YEAR ENDED DECEMBER 31,
________________________________________________________________
(MILLIONS OF DOLLARS) 2005 2004 2003
Operating Activities
Net Income $8,085 $11,361 $ 3,910
Adjustments to reconcile net income to net cash provided by continuing
operating activities:
Depreciation and amortization 5,576 5,093 4,025
Merger-related in-process research and development charges 1,652 1,071 5,052
Charge for fair value mark-up of acquired inventory sold —40 2,747
Intangible asset impairments and other associated non-cash charges 1,240 702 —
Gains on disposal of investments, products and product lines (188) (16) (85)
Loss/(income) from discontinued operations 33 39 (43)
Gains on sales of discontinued operations (77) (75) (3,885)
Cumulative effect of a change in accounting principles 40 —47
Deferred taxes from continuing operations (1,384) (1,579) (104)
Other deferred taxes 8(15) 735
Other non-cash adjustments 334 558 588
Changes in assets and liabilities, net of effect of businesses acquired and divested:
Accounts receivable (803) (465) 207
Inventories 72 (542) (200)
Prepaid and other assets 582 (640) (918)
Accounts payable and accrued liabilities (729) (704) 909
Income taxes payable 172 827 (541)
Other liabilities 120 685 (717)
Net cash provided by continuing operating activities 14,733 16,340 11,727
Investing Activities
Purchases of property, plant and equipment (2,106) (2,601) (2,629)
Purchases of short-term investments (28,040) (17,499) (9,931)
Proceeds from redemptions of short-term investments 26,779 11,723 12,060
Purchases of long-term investments (687) (1,329) (1,883)
Proceeds from sales of long-term investments 1,309 1,570 356
Purchases of other assets (431) (327) (788)
Proceeds from sales of other assets 12 6360
Proceeds from sales of businesses, product lines and other products 127 1,276 5,602
Acquisitions, net of cash acquired (2,104) (2,263) —
Cash and cash equivalents acquired through acquisition of Pharmacia ——1,789
Other investing activities 69 22 (86)
Net cash (used in)/provided by investing activities (5,072) (9,422) 4,850
Financing Activities
Increase in short-term borrowings, net 1,124 2,466 194
Principal payments on short-term borrowings (1,427) (288) (946)
Proceeds from issuances of long-term debt 1,021 2,586 600
Principal payments on long-term debt (1,039) (664) (439)
Purchases of common stock (3,797) (6,659) (13,037)
Cash dividends paid (5,555) (5,082) (4,353)
Stock option transactions and other 451 1,012 1,072
Net cash used in financing activities (9,222) (6,629) (16,909)
Effect of exchange-rate changes on cash and cash equivalents —(1) (26)
Net increase/(decrease) in cash and cash equivalents 439 288 (358)
Cash and cash equivalents at beginning of year 1,808 1,520 1,878
Cash and cash equivalents at end of year $2,247 $1,808 $ 1,520
Supplemental Cash Flow Information
Non-cash transactions:
Acquisition of Pharmacia, net of transaction costs $— $— $55,871
Cash paid during the period for:
Income taxes $4,713 $3,388 $ 2,905
Interest 649 496 350
See Notes to Consolidated Financial Statements which are an integral part of these statements.