|
Consolidated Statement of Cash Flows
| (in millions
of dollars) |
2004 |
2003 |
2002 |
 |
|
|
|
|
|
| Operating Activities |
|
|
|
|
| Net income |
$2,788 |
$2,361 |
$2,236 |
|
| Adjustments to
reconcile net income to net cash flows provided by operating
activities: |
|
|
|
|
| Depreciation
and amortization |
978 |
799 |
727 |
|
| Deferred
income tax provision |
209 |
254 |
318 |
|
Minority
interests in subsidiaries’ earnings
|
234 |
168 |
153 |
|
Change
in:
|
|
|
|
|
Accounts
receivable
|
(346) |
(26)
|
80 |
|
Inventories
and contracts in progress
|
(144) |
41 |
194 |
|
Other
current assets
|
23 |
(14) |
10 |
|
Accounts
payable and accrued liabilities
|
380 |
55
|
(168) |
|
Voluntary
contributions to pension plans
|
(906) |
(994) |
(530) |
|
Other,
net
|
483 |
231 |
(167) |
|
| Net
Cash Provided by Operating Activities |
3,699
|
2,875
|
2,853 |
|
| |
|
|
|
|
Investing
Activities
|
|
|
|
|
Capital expenditures
|
(795) |
(530) |
(586) |
|
Increase in customer financing
assets
|
(309) |
(458) |
(386) |
|
Decrease in customer
financing assets
|
258 |
225 |
222 |
|
Business acquisitions
|
(1,075) |
(1,097) |
(402) |
|
Dispositions of businesses
|
27 |
15 |
26 |
|
Other, net
|
132 |
84 |
38 |
|
| Net
Cash Used in Investing Activities |
(1,762) |
(1,761) |
(1,088) |
|
| |
|
|
|
|
Financing Activities
|
|
|
|
|
Issuance of long-term debt
|
— |
—
|
500 |
|
Repayment of long-term debt
|
(535) |
(1,092) |
(231) |
|
Increase (decrease) in short-term
borrowings
|
577 |
286 |
(357) |
|
Common Stock issued under
employee stock plans
|
431 |
331 |
183 |
|
Dividends paid on Common
Stock
|
(660) |
(533)
|
(462) |
|
Repurchase of Common Stock
|
(992) |
(401)
|
(700) |
|
Dividends to minority interests
and other
|
(223) |
(287)
|
(184) |
|
| Net
Cash Used in Financing Activities |
(1,402) |
(1,696) |
(1,251) |
|
| |
|
|
|
|
| Effect of foreign exchange
rate changes on Cash and cash equivalents |
107 |
125 |
8 |
|
| |
|
|
|
|
| Net increase
(decrease) in Cash and cash equivalents |
642 |
(457) |
522 |
|
| Cash and cash
equivalents, beginning of year |
1,623 |
2,080 |
1,558 |
|
| Cash and cash
equivalents, end of year |
$2,265 |
$1,623 |
$2,080 |
|
| |
|
|
|
|
Supplemental Disclosure of
Cash Flow Information:
|
|
|
|
|
Interest
paid, net of amounts capitalized
|
$522 |
$372
|
$368 |
|
| Income
taxes paid, net of refunds |
$758 |
$378
|
$396 |
|
Non-cash investing and financing
activities include:
|
|
|
|
|
The 2002
Treasury Stock contribution of $253 million
|
|
|
|
|
to
domestic defined benefit pension plans
|
|
|
|
|
The 2003
conversion of the ESOP convertible preferred shares of $698
million
|
|
|
|
|
| into
Common Shares |
|
|
|
|
|
|