Sprint - Nextel 2005 Annual Report Download - page 104

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SPRINT NEXTEL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2005, 2004 and 2003
2005 2004 2003
(revised
see note 14)
(in millions)
Cash flows from operating activities
Net income (loss) .............................................. $ 1,785 $ (1,012) $ 1,290
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Discontinued operations, net ................................... — — (1,324)
Cumulative effect of change in accounting principle, net ............. 16 — (258)
Provision for losses on accounts receivable ....................... 441 386 422
Depreciation and amortization .................................. 6,269 4,720 4,973
Equity in (earnings) losses of unconsolidated subsidiaries, net ........ (110) 39 77
Deferred income taxes ........................................ 830 (576) 439
Gain on sale of assets, net ..................................... (43) (14) (4)
Losses on impairment of assets ................................. 127 3,540 1,873
Other, net .................................................. 436 281 161
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable ........................................ (442) (617) (347)
Inventories and other current assets ............................ 11 (22) 204
Accounts payable and other current liabilities ................... 299 (117) (856)
Proceeds from communications towers lease transaction ........... 1,195 — —
Noncurrent assets and liabilities, net ........................... (136) 17 (115)
Net cash provided by operating activities ..................... 10,678 6,625 6,535
Cash flows from investing activities
Capital expenditures ........................................... (5,057) (3,980) (3,797)
Cash acquired in Nextel merger, net of cash paid ..................... 1,183 — —
Purchase of PCS Affiliates, net of cash acquired ..................... (1,371) — —
Proceeds from divestiture of directory business ...................... — — 2,213
Purchases of marketable securities ................................ (821) (542) (439)
Proceeds from maturities and sales of marketable securities ............ 808 444 —
Proceeds from sales of assets and investments ....................... 648 77 101
Distributions from (investments in) unconsolidated subsidiaries, net ..... 167 (20) (32)
Other, net .................................................... (281) (35) —
Net cash used in investing activities ......................... (4,724) (4,056) (1,954)
Cash flows from financing activities
Borrowings under bank credit facility .............................. 3,200 — 44
Repayments under bank credit facility ............................. (3,200) — —
Purchase and retirements of debt securities .......................... (1,170) (1,884) (2,952)
Proceeds from issuance of common stock ........................... 432 1,874 12
Dividends paid ................................................ (525) (670) (457)
Other, net .................................................... 35 — 24
Net cash used in financing activities ......................... (1,228) (680) (3,329)
Net increase in cash and cash equivalents ........................... 4,726 1,889 1,252
Cash and cash equivalents, beginning of period ...................... 4,176 2,287 1,035
Cash and cash equivalents, end of period ........................... $ 8,902 $ 4,176 $ 2,287
See accompanying Notes to the Consolidated Financial Statements.
F-9