Verizon Wireless 2008 Annual Report Download - page 42

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40
VERIZON COMMUNICATIONS INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(dollars in millions)
Years Ended December 31, 2008 2007 2006
Cash Flows from Operating Activities
Net Income $ 6,428 $ 5,521 $ 6,197
Adjustments to reconcile net income to net cash provided by operating activities –
continuing operations:
Depreciation and amortization expense 14,565 14,377 14,545
Loss on sale of discontinued operations –– 541
Employee retirement benets 1,955 1,720 1,923
Deferred income taxes 2,183 408 (252)
Provision for uncollectible accounts 1,085 1,047 1,034
Equity in earnings of unconsolidated businesses, net of dividends received 212 1,986 (731)
Extraordinary item, net of tax –131 –
Cumulative eect of accounting change, net of tax –– 42
Changes in current assets and liabilities, net of eects from acquisition/disposition
of businesses:
Accounts receivable (1,085) (1,931) (1,312)
Inventories (188) (255) 8
Other assets (59) (140) 52
Accounts payable and accrued liabilities (1,701) (567) (383)
Other, net 3,225 4,012 1,366
Net cash provided by operating activities – continuing operations 26,620 26,309 23,030
Net cash provided by (used in) operating activities – discontinued operations –(570) 1,076
Net cash provided by operating activities 26,620 25,739 24,106
Cash Flows from Investing Activities
Capital expenditures (including capitalized software) (17,238) (17,538) (17,101)
Acquisitions of licenses, investments and businesses, net of cash acquired (15,904) (763) (1,422)
Net change in short-term investments 1,677 169 290
Other, net (114) 1,267 811
Net cash used in investing activities – continuing operations (31,579) (16,865) (17,422)
Net cash provided by investing activities – discontinued operations –757 1,806
Net cash used in investing activities (31,579) (16,108) (15,616)
Cash Flows from Financing Activities
Proceeds from long-term borrowings 21,598 3,402 3,983
Repayments of long-term borrowings and capital lease obligations (4,146) (5,503) (11,233)
Increase (decrease) in short-term obligations, excluding current maturities 2,389 (3,252) 7,944
Dividends paid (4,994) (4,773) (4,719)
Proceeds from sale of common stock 16 1,274 174
Purchase of common stock for treasury (1,368) (2,843) (1,700)
Other, net 93 (2) (201)
Net cash provided by (used in) nancing activities – continuing operations 13,588 (11,697) (5,752)
Net cash used in nancing activities – discontinued operations –– (279)
Net cash provided by (used in) nancing activities 13,588 (11,697) (6,031)
Increase (decrease) in cash and cash equivalents 8,629 (2,066) 2,459
Cash and cash equivalents, beginning of year 1,153 3,219 760
Cash and cash equivalents, end of year $ 9,782 $ 1,153 $ 3,219
See Notes to Consolidated Financial Statements.