| |
For the Year Ended December 31, |
| (in millions) |
2003 |
2002 |
2001 |
 |
| Cash flows from operating activities: |
|
| Net earnings |
$ |
265 |
$ |
770 |
$ |
76 |
| Adjustments to reconcile to net cash provided by operating activities: |
|
| (Earnings) loss from discontinued operations |
(27) |
23 |
5 |
| Equity in losses from unconsolidated affiliates |
52 |
105 |
84 |
| Depreciation and goodwill amortization |
830 |
818 |
917 |
| Gain on sales of businesses/assets |
(11) |
(24) |
— |
| Purchased research and development |
32 |
— |
— |
| Restructuring costs, asset impairments and other charges |
156 |
85 |
415 |
| Benefit for deferred income taxes |
(14) |
(224) |
(41) |
| (Increase) decrease in receivables |
(9) |
263 |
254 |
| Decrease in inventories |
128 |
88 |
465 |
| Increase (decrease) in liabilities excluding borrowings |
94 |
29 |
(111) |
| Other items, net |
130 |
285 |
149 |
|
| Total adjustments |
1,361 |
1,448 |
2,137 |
|
| Net cash provided by continuing operations |
1,626 |
2,218 |
2,213 |
|
| Net cash provided by (used in) discontinued operations |
19 |
(14) |
(7) |
|
| Net cash provided by operating activities |
1,645 |
2,204 |
2,206 |
|
| Cash flows from investing activities: |
|
| Additions to properties |
(506) |
(577) |
(743) |
| Net proceeds from sales of businesses/assets |
26 |
27 |
— |
| Acquisitions, net of cash acquired |
(697) |
(72) |
(306) |
| Investments in unconsolidated affiliates |
(89) |
(123) |
(141) |
| Marketable securities—sales |
86 |
88 |
54 |
| Marketable securities—purchases |
(87) |
(101) |
(52) |
|
| Net cash used in investing activities |
(1,267) |
(758) |
(1,188) |
|
| Cash flows from financing activities: |
|
Net decrease in borrowings with maturities of 90 days
or less |
(574) |
(210) |
(695) |
| Proceeds from other borrowings |
1,693 |
759 |
1,907 |
| Repayment of other borrowings |
(531) |
(1,146) |
(1,355) |
| Exercise of employee stock options |
12 |
51 |
22 |
| Dividends to shareholders |
(330) |
(525) |
(643) |
| Stock repurchase programs |
— |
(260) |
(44) |
|
| Net cash provided by (used in) financing activities |
270 |
(1,331) |
(808) |
|
| Effect of exchange rate changes on cash |
33 |
6 |
(8) |
|
| Net increase in cash and cash equivalents |
681 |
121 |
202 |
| Cash and cash equivalents, beginning of year |
569 |
448 |
246 |
|
| Cash and cash equivalents, end of year |
$ |
1,250 |
$ |
569 |
$ |
448 |
|
| Supplemental Cash Flow Information |
|
| Cash paid for interest and income taxes was: |
|
| Interest, net of portion capitalized of $2, $3 and $12 |
$ |
137 |
$ |
173 |
$ |
214 |
| Income taxes |
66 |
201 |
120 |
| The following non-cash transactions are not reflected in the Consolidated Statement of Cash Flows: |
|
| Minimum pension liability adjustment |
$ |
122 |
$ |
394 |
$ |
37 |
| Liabilities assumed in acquisitions |
109 |
30 |
142 |
| Issuance of restricted stock, net of forfeitures |
13 |
1 |
5 |
| Issuance of stock related to an acquisition |
— |
25 |
— |
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these consolidated financial statements.
