Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows
| Three Years Ended December 27, 2008 (In Millions) |
2008 | 2007 | 2006 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents, beginning of year | $ | 7,307 | $ | 6,598 | $ | 7,324 | |||
| Cash flows provided by (used for) operating activities: | |||||||||
Net income |
5,292 | 6,976 | 5,044 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation |
4,360 | 4,546 | 4,654 | ||||||
Share-based compensation |
851 | 952 | 1,375 | ||||||
Restructuring, asset impairment, and net loss on retirement of assets |
795 | 564 | 635 | ||||||
Excess tax benefit from share-based payment arrangements |
(30) | (118) | (123) | ||||||
Amortization of intangibles |
256 | 252 | 258 | ||||||
(Gains) losses on equity method investments, net |
1,380 | (3) | (2) | ||||||
(Gains) losses on other equity investments, net |
376 | (154) | (212) | ||||||
(Gains) losses on divestitures |
(59) | (21) | (612) | ||||||
Deferred taxes |
(790) | (443) | (325) | ||||||
Changes in assets and liabilities: |
|||||||||
Trading assets |
193 | (1,429) | 324 | ||||||
Accounts receivable |
260 | 316 | 1,229 | ||||||
Inventories |
(395) | 700 | (1,116) | ||||||
Accounts payable |
29 | 102 | 7 | ||||||
Accrued compensation and benefits |
(569) | 354 | (435) | ||||||
Income taxes payable and receivable |
(834) | (248) | (60) | ||||||
Other assets and liabilities |
(189) | 279 | (9) | ||||||
Total adjustments |
5,634 | 5,649 | 5,588 | ||||||
| Net cash provided by operating activities | 10,926 | 12,625 | 10,632 | ||||||
| Cash flows provided by (used for) investing activities: | |||||||||
Additions to property, plant and equipment |
(5,197) | (5,000) | (5,860) | ||||||
Acquisitions, net of cash acquired |
(16) | (76) | — | ||||||
Purchases of available-for-sale investments |
(6,479) | (11,728) | (5,272) | ||||||
Maturities and sales of available-for-sale investments |
7,993 | 8,011 | 7,147 | ||||||
Purchases of trading assets |
(2,676) | — | — | ||||||
Maturities and sales of trading assets |
1,766 | — | — | ||||||
Investments in non-marketable equity investments |
(1,691) | (1,459) | (1,722) | ||||||
Return of equity method investment |
316 | — | — | ||||||
Proceeds from divestitures |
85 | 32 | 752 | ||||||
Other investing activities |
34 | 294 | (33) | ||||||
| Net cash used for investing activities | (5,865) | (9,926) | (4,988) | ||||||
| Cash flows provided by (used for) financing activities: | |||||||||
Increase (decrease) in short-term debt, net |
(40) | (39) | (114) | ||||||
Proceeds from government grants |
182 | 160 | 69 | ||||||
Excess tax benefit from share-based payment arrangements |
30 | 118 | 123 | ||||||
Additions to long-term debt |
— | 125 | — | ||||||
Repayment of notes payable |
— | — | (581) | ||||||
Proceeds from sales of shares through employee equity incentive plans |
1,105 | 3,052 | 1,046 | ||||||
Repurchase and retirement of common stock |
(7,195) | (2,788) | (4,593) | ||||||
Payment of dividends to stockholders |
(3,100) | (2,618) | (2,320) | ||||||
| Net cash used for financing activities | (9,018) | (1,990) | (6,370) | ||||||
| Net increase (decrease) in cash and cash equivalents | (3,957) | 709 | (726) | ||||||
| Cash and cash equivalents, end of year | $ | 3,350 | $ | 7,307 | $ | 6,598 | |||
| Supplemental disclosures of cash flow information: | |||||||||
Cash paid during the year for: |
|||||||||
Interest, net of amounts capitalized of $86 in 2008 ($57 in 2007 and $60 in 2006) |
$ | 6 | $ | 15 | $ | 25 | |||
Income taxes, net of refunds |
$ | 4,007 | $ | 2,762 | $ | 2,432 | |||
| See accompanying notes. |