3M 2004 Annual Report Download - page 69

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43
Consolidated Statement of Cash Flows
3M Company and Subsidiaries
Years ended December 31
(Dollars in millions) 2004 2003 2002
Cash Flows from Operating Activities
Net income $ 2,990 $ 2,403 $ 1,974
Adjustments to reconcile net income
to net cash provided by operating activities
Depreciation and amortization 999 964 954
Company pension contributions (591) (749) (1,086)
Deferred income tax provision 313 115 579
Changes in assets and liabilities
Accounts receivable 56 38 145
Inventories 7 281 279
Other current assets (45) (187) 58
Other assets – net of amortization 72 (59) (54)
Accrued income taxes 83 424 (11)
Accounts payable 35 62 138
Other current liabilities (47) 50 (171)
Other liabilities 424 397 113
Other – net (14) 34 74
Net cash provided by operating activities 4,282 3,773 2,992
Cash Flows from Investing Activities
Purchases of property, plant and equipment (PP&E) (937) (677) (763)
Proceeds from sale of PP&E and other assets 69 129 83
Acquisitions, net of cash acquired (73) (439) (1,258)
Purchases of investments (10) (16) (7)
Proceeds from sale of investments 13 34 18
Net cash used in investing activities (938) (969) (1,927)
Cash Flows from Financing Activities
Change in short-term debt – net 399 (215) (204)
Repayment of debt (maturities greater than 90 days) (868) (719) (497)
Proceeds from debt (maturities greater than 90 days) 358 494 1,146
Purchases of treasury stock (1,791) (685) (942)
Reissuances of treasury stock 508 555 522
Dividends paid to stockholders (1,125) (1,034) (968)
Distributions to minority interests (11) (13) (78)
Other – net (4) (10) –
Net cash used in financing activities (2,534) (1,627) (1,021)
Effect of exchange rate changes on cash
and cash equivalents 111 41 (42)
Net increase in cash and cash equivalents 921 1,218 2
Cash and cash equivalents at beginning of year 1,836 618 616
Cash and cash equivalents at end of year $ 2,757 $ 1,836 $ 618
The accompanying Notes to Consolidated Financial Statements are an integral part of this statement.