| My Company and Subsidiaries | |||||||
| Consolidated Statement of Cash Flows | |||||||
| (Unaudited) | |||||||
| Six months ended | |||||||
| June 30 | |||||||
| (Dollars in millions) | 2009 | 2008 | |||||
| Cash Flows from Operating Activities | |||||||
| Net income including noncontrolling interest | $ | 1,322 | $ | 1,969 | |||
| Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities | |||||||
| Depreciation and amortization | 569 | 553 | |||||
| Company pension and postretirement contributions | (205 | ) | (95 | ) | |||
| Company pension and postretirement expense | 109 | 52 | |||||
| Stock-based compensation expense | 132 | 122 | |||||
| (Gain)/loss from sale of businesses | — | 23 | |||||
| Deferred income taxes | (15 | ) | 46 | ||||
| Excess tax benefits from stock-based compensation | — | (20 | ) | ||||
| Changes in assets and liabilities | |||||||
| Accounts receivable | (222 | ) | (405 | ) | |||
| Inventories | 447 | (171 | ) | ||||
| Accounts payable | (76 | ) | 30 | ||||
| Accrued income taxes | 199 | (42 | ) | ||||
| Product and other insurance receivables and claims | 34 | 129 | |||||
| Other – net | (133 | ) | 49 | ||||
| Net cash provided by operating activities | 2,161 | 2,240 | |||||
| Cash Flows from Investing Activities | |||||||
| Purchases of property, plant and equipment (PP&E) | (454 | ) | (632 | ) | |||
| Proceeds from sale of PP&E and other assets | 57 | 6 | |||||
| Acquisitions, net of cash acquired | (12 | ) | (549 | ) | |||
| Purchases of marketable securities and investments | (485 | ) | (1,479 | ) | |||
| Proceeds from sale of marketable securities and investments | 330 | 732 | |||||
| Proceeds from maturities of marketable securities | 195 | 427 | |||||
| Proceeds from sale of businesses | — | 85 | |||||
| Other investing | (6 | ) | (57 | ) | |||
| Net cash used in investing activities | (375 | ) | (1,467 | ) | |||
| Cash Flows from Financing Activities | |||||||
| Change in short-term debt – net | (552 | ) | 1,120 | ||||
| Repayment of debt (maturities greater than 90 days) | (88 | ) | (807 | ) | |||
| Purchases of treasury stock | (6 | ) | (1,082 | ) | |||
| Reissuances of treasury stock | 225 | 217 | |||||
| Dividends paid to stockholders | (709 | ) | (704 | ) | |||
| Distributions to noncontrolling interest | — | (12 | ) | ||||
| Excess tax benefits from stock-based compensation | — | 20 | |||||
| Other – net | 3 | 131 | |||||
| Net cash used in financing activities | (1,127 | ) | (1,117 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | 88 | (5 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 747 | (349 | ) | ||||
| Cash and cash equivalents at beginning of year | 1,849 | 1,896 | |||||
| Cash and cash equivalents at end of period | $ | 2,596 | $ | 1,547 | |||
| The accompanying Notes to Consolidated Financial Statements are an integral part of this statement. | |||||||