Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows
| Three Years Ended December 29, 2007 (In Millions) |
2007 | 2006 | 2005 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents, beginning of year | $ | 6,598 | $ | 7,324 | $ | 8,407 | |||
| Cash flows provided by (used for) operating activities: | |||||||||
Net income |
6,976 | 5,044 | 8,664 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation |
4,546 | 4,654 | 4,345 | ||||||
Share-based compensation |
952 | 1,375 | — | ||||||
Restructuring, asset impairment, and net loss on retirement of assets |
564 | 635 | 74 | ||||||
Excess tax benefit from share-based payment arrangements |
(118) | (123) | — | ||||||
Amortization of intangibles and other acquisition-related costs |
252 | 258 | 250 | ||||||
(Gains) losses on equity investments, net |
(157) | (214) | 45 | ||||||
(Gains) on divestitures |
(21) | (612) | — | ||||||
Deferred taxes |
(443) | (325) | (413) | ||||||
Tax benefit from employee equity incentive plans |
— | — | 351 | ||||||
Changes in assets and liabilities: |
|||||||||
Trading assets |
(1,429) | 324 | 1,606 | ||||||
Accounts receivable |
316 | 1,229 | (912) | ||||||
Inventories |
700 | (1,116) | (500) | ||||||
Accounts payable |
102 | 7 | 303 | ||||||
Income taxes payable and receivable |
(248) | (60) | 797 | ||||||
Other assets and liabilities |
633 | (444) | 241 | ||||||
Total adjustments |
5,649 | 5,588 | 6,187 | ||||||
| Net cash provided by operating activities | 12,625 | 10,632 | 14,851 | ||||||
| Cash flows provided by (used for) investing activities: | |||||||||
Additions to property, plant and equipment |
(5,000) | (5,860) | (5,871) | ||||||
Acquisitions, net of cash acquired |
(76) | — | (191) | ||||||
Purchases of available-for-sale investments |
(11,728) | (5,272) | (8,475) | ||||||
Maturities and sales of available-for-sale investments |
8,011 | 7,147 | 8,433 | ||||||
Investments in non-marketable equity instruments |
(1,459) | (1,722) | (193) | ||||||
Net proceeds from divestitures |
32 | 752 | — | ||||||
Other investing activities |
294 | (33) | (118) | ||||||
| Net cash used for investing activities | (9,926) | (4,988) | (6,415) | ||||||
| Cash flows provided by (used for) financing activities: | |||||||||
Increase (decrease) in short-term debt, net |
(39) | (114) | 126 | ||||||
Proceeds from government grants |
160 | 69 | 25 | ||||||
Excess tax benefit from share-based payment arrangements |
118 | 123 | — | ||||||
Additions to long-term debt |
125 | — | 1,742 | ||||||
Repayments and retirement of debt |
— | — | (19) | ||||||
Repayment of notes payable |
— | (581) | — | ||||||
Proceeds from sales of shares through employee equity incentive plans |
3,052 | 1,046 | 1,202 | ||||||
Repurchase and retirement of common stock |
(2,788) | (4,593) | (10,637) | ||||||
Payment of dividends to stockholders |
(2,618) | (2,320) | (1,958) | ||||||
| Net cash used for financing activities | (1,990) | (6,370) | (9,519) | ||||||
| Net increase (decrease) in cash and cash equivalents | 709 | (726) | (1,083) | ||||||
| Cash and cash equivalents, end of year | $ | 7,307 | $ | 6,598 | $ | 7,324 | |||
| Supplemental disclosures of cash flow information: | |||||||||
Cash paid during the year for: |
|||||||||
Interest, net of amounts capitalized of $57 in 2007 and $60 in 2006 |
$ | 15 | $ | 25 | $ | 27 | |||
Income taxes, net of refunds |
$ | 2,762 | $ | 2,432 | $ | 3,218 | |||
| See accompanying notes. |