Johnson & Johnson - Index

Johnson & Johnson - report - Index

Consolidated Statements of Cash Flows
See Notes to Consolidated Financial Statements
Johnson & Johnson and Subsidiaries
(Dollars in Millions) (Note 1) 2007 2006 2005
Cash flows from operating activities
Net earnings $ 10,576 11,053 10,060
Adjustments to reconcile net earnings to cash flows:
Depreciation and amortization of property and intangibles 2,777 2,177 2,093
Stock based compensation 698 659 540
Purchased in-process research and development 807 559 362
Intangible asset write-down (NATRECOR®) 678 — —
Deferred tax provision (1,762) (1,168) (235)
Accounts receivable allowances 22 (14) (31)
Changes in assets and liabilities, net of effects from acquisitions:
Increase in accounts receivable (416) (699) (568)
Decrease/(increase) in inventories 14 (210) (396)
Increase/(decrease) in accounts payable and accrued liabilities 2,642 1,750 (911)
(Increase)/decrease in other current and non-current assets (1,351) (269) 542
Increase in other current and non-current liabilities 564 410 343
Net cash flows from operating activities 15,249 14,248 11,799
Cash flows from investing activities
Additions to property, plant and equipment (2,942) (2,666) (2,632)
Proceeds from the disposal of assets 230 511 154
Acquisitions, net of cash acquired (Note 17) (1,388) (18,023) (987)
Purchases of investments (9,659) (467) (5,660)
Sales of investments 7,988 426 9,187
Other (primarily intangibles) (368) (72) (341)
Net cash used by investing activities (6,139) (20,291) (279)
Cash flows from financing activities
Dividends to shareholders (4,670) (4,267) (3,793)
Repurchase of common stock (5,607) (6,722) (1,717)
Proceeds from short-term debt 19,626 6,385 1,215
Retirement of short-term debt (21,691) (2,633) (732)
Proceeds from long-term debt 5,100 6 6
Retirement of long-term debt (18) (13) (196)
Proceeds from the exercise of stock options/excess tax benefits 1,562 1,135 774
Net cash used by financing activities (5,698) (6,109) (4,443)
Effect of exchange rate changes on cash and cash equivalents 275 180 (225)
(Decrease)/increase in cash and cash equivalents 3,687 (11,972) 6,852
Cash and cash equivalents, beginning of year (Note 1) 4,083 16,055 9,203
Cash and cash equivalents, end of year (Note 1) $ 7,770 4,083 16,055
Supplemental cash flow data
Cash paid during the year for:
Interest $ 314 143 151
Income taxes 4,099 4,250 3,429
Supplemental schedule of noncash investing and
financing activities
Treasury stock issued for employee compensation
and stock option plans, net of cash proceeds $ 738 622 818
Conversion of debt 9 26 369
Acquisitions
Fair value of assets acquired $ 1,620 19,306 1,128
Fair value of liabilities assumed (232) (1,283) (141)
Net cash paid for acquisitions $ 1,388 18,023 987
C ONSOLIDA TED FINANCIAL ST A TEMENTS 51