Consolidated Statements of Cash Flows

Year ended December 31 ($ in millions)

2014

2013

2012

See accompanying Notes to the Consolidated Financial Statements

Operating activities:

 

 

 

Net income

2,718

2,907

2,812

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

1,305

1,318

1,182

Pension and other employee benefits

16

6

(13)

Deferred taxes

65

(137)

64

Net gain from sale of property, plant and equipment

(17)

(18)

(26)

Net (gain) loss from sale of businesses

(543)

16

2

Other

112

79

169

Changes in operating assets and liabilities:

 

 

 

Trade receivables, net

(12)

(571)

(310)

Inventories, net

(176)

324

61

Trade payables

257

(43)

(57)

Accrued liabilities

9

71

162

Billings in excess of sales

(118)

(168)

152

Provisions, net

(127)

199

(109)

Advances from customers

39

(145)

181

Income taxes payable and receivable

(13)

(18)

(261)

Other assets and liabilities, net

330

(167)

(230)

Net cash provided by operating activities

3,845

3,653

3,779

 

 

 

 

Investing activities:

 

 

 

Purchases of marketable securities (available-for-sale)

(1,430)

(526)

(2,288)

Purchases of short-term investments

(1,465)

(30)

(67)

Purchases of property, plant and equipment and intangible assets

(1,026)

(1,106)

(1,293)

Acquisition of businesses (net of cash acquired) and increases in cost- and equity-accounted companies

(70)

(914)

(3,694)

Proceeds from sales of marketable securities (available-for-sale)

361

1,367

1,655

Proceeds from maturity of marketable securities (available-for-sale)

523

118

Proceeds from short-term investments

1,011

47

27

Proceeds from sales of property, plant and equipment

33

80

40

Proceeds from sales of businesses (net of transaction costs and cash disposed) and cost- and equity-accounted companies

1,110

62

16

Other investing activities

(168)

185

29

Net cash used in investing activities

(1,121)

(717)

(5,575)

 

 

 

 

Financing activities:

 

 

 

Net changes in debt with maturities of 90 days or less

(103)

(697)

570

Increase in debt

150

492

5,986

Repayment of debt

(90)

(1,893)

(1,104)

Delivery of shares

38

74

90

Purchases of treasury stock

(1,003)

Dividends paid

(1,841)

(1,667)

(1,626)

Dividends paid to noncontrolling shareholders

(132)

(149)

(121)

Other financing activities

(43)

(16)

(33)

Net cash provided by (used in) financing activities

(3,024)

(3,856)

3,762

 

 

 

 

Effects of exchange rate changes on cash and equivalents

(278)

66

90

Net change in cash and equivalents – continuing operations

(578)

(854)

2,056

Cash and equivalents, beginning of period

6,021

6,875

4,819

Cash and equivalents, end of period

5,443

6,021

6,875

 

 

 

 

Supplementary disclosure of cash flow information:

 

 

 

Interest paid

259

287

189

Taxes paid

1,155

1,278

1,211