Corning 2007 Annual Report

Consolidated Statements of Cash Flows Corning Incorporated and Subsidiary Companies
For the years ended December 31,
(In millions) 2007 2006 2005
Cash Flows from Operating Activities:
Net income $ 2,150 $ 1,855 $ 585
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 597 580 499
Amortization of purchased intangibles 10 11 13
Asbestos settlement 185 (2) 218
Restructuring, impairment and other (credits) charges (4) 54 (38)
Loss on repurchases and retirement of debt 15 11 16
Stock compensation charges 138 127 29
Gain on sale of business (19)
Undistributed earnings of affiliated companies (452) (597) (310)
Deferred tax (benefit) provision (98) (101) 425
Interest expense on convertible debentures (23)
Restructuring payments (39) (15) (25)
Decrease in restricted cash 22
Customer deposits, net of (credits) issued (126) 45 428
Employee benefit payments (in excess of) less than expense (111) 27 34
Changes in certain working capital items:
Trade accounts receivable (128) (105) (77)
Inventories 5 (65) (62)
Other current assets (27) (10) 6
Accounts payable and other current liabilities, net of restructuring payments 10 (85) 87
Other, net (29) 73 112
Net cash provided by operating activities 2,077 1,803 1,939
Cash Flows from Investing Activities:
Capital expenditures (1,262) (1,182) (1,553)
Acquisitions of businesses, net of cash acquired (4) (16)
Net (payments) proceeds from sale or disposal of assets (5) 12 18
Net increase in long-term investments and other long-term assets (77)
Short-term investments - acquisitions (2,152) (2,894) (1,668)
Short-term investments - liquidations 2,862 1,976 1,452
Other, net 39
Net cash used in investing activities (561) (2,181) (1,712)
Cash Flows from Financing Activities:
Net repayments of short-term borrowings and current portion of long-term debt (20) (14) (451)
Proceeds from issuance of long-term debt, net 246 147
Retirements of long-term debt (238) (368) (102)
Proceeds from issuance of common stock, net 21 26 365
Proceeds from the exercise of stock options 109 303 202
Repurchases of common stock (250)
Dividends paid (158)
Other, net (3) (13) (14)
Net cash (used in) provided by financing activities (539) 180 147
Effect of exchange rates on cash 82 13 (41)
Net increase (decrease) in cash and cash equivalents 1,059 (185) 333
Cash and cash equivalents at beginning of year 1,157 1,342 1,009
Cash and cash equivalents at end of year $ 2,216 $ 1,157 $ 1,342
The accompanying notes are an integral part of these consolidated financial statements.
Certain amounts for prior periods were reclassified to conform with the 2007 presentation.
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