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Consolidated Statement of Cash Flows
(dollars in thousands)
| Year Ended December 31 | 2007 | 2006 | 2005 |
| Cash Flow From (Used in) Operating Activities: | |||
| Net earnings | $3,606,314 | $1,716,755 | $3,372,065 |
| Adjustments to reconcile net earnings to net cash from operating activities — | |||
| Depreciation | 1,072,855 | 983,485 | 868,808 |
| Amortization of intangible assets | 782,031 | 575,265 | 490,131 |
| Share-based compensation | 429,677 | 329,957 | 30,140 |
| Acquired in-process research and development | — | 1,927,300 | 17,131 |
| Investing and financing (gains) losses, net | 356,331 | 277,388 | 125,328 |
| Trade receivables | (431,846) | (101,781) | (98,216) |
| Inventories | 131,324 | 104,653 | (88,257) |
| Prepaid expenses and other assets | (418,344) | (283,455) | (406,858) |
| Trade accounts payable and other liabilities | (82,960) | (183,203) | 199,703 |
| Income taxes | (261,539) | (84,275) | 537,429 |
| Net Cash From Operating Activities | 5,183,843 | 5,262,089 | 5,047,404 |
| Cash Flow From (Used in) Investing Activities: | |||
| Acquisitions of businesses and technologies, net of cash acquired | — | (7,923,163) | (295,123) |
| Acquisitions of property and equipment | (1,656,207) | (1,337,818) | (1,207,493) |
| Sales of (investment in) Boston Scientific common stock; and (investments in) note receivable and derivative financial instruments | 568,437 | (2,095,780) | — |
| Purchases of investment securities | (32,852) | (33,632) | (15,670) |
| Proceeds from sales of investment securities | 17,830 | 18,476 | 783,599 |
| Other | (33,485) | (25,712) | 14,600 |
| Net Cash (Used in) Investing Activities | (1,136,277) | (11,397,629) | (720,087) |
| Cash Flow From (Used in) Financing Activities: | |||
| (Repayments of) net proceeds from issuance of short-term debt and other | (3,603,481) | 5,183,225 | (1,528,180) |
| Proceeds from issuance of long-term debt | 3,500,000 | 4,000,000 | 1,851,013 |
| (Repayment) of long-term debt | (441,012) | (3,532,408) | (150,000) |
| Purchases of common shares | (1,058,793) | (754,502) | (1,302,314) |
| Proceeds from stock options exercised, including income tax benefit | 1,249,804 | 502,782 | 223,637 |
| Dividends paid | (1,959,150) | (1,777,170) | (1,686,472) |
| Net Cash (Used in) From Financing Activities | (2,312,632) | 3,621,927 | (2,592,316) |
| Effect of exchange rate changes on cash and cash equivalents | 200,258 | 73,966 | (193,954) |
| Net cash provided by operating activities of discontinued operations of Hospira, Inc. | — | 67,152 | 127,012 |
| Net Increase (Decrease) in Cash and Cash Equivalents | 1,935,192 | (2,372,495) | 1,668,059 |
| Cash and Cash Equivalents, Beginning of Year | 521,192 | 2,893,687 | 1,225,628 |
| Cash and Cash Equivalents, End of Year | $2,456,384 | $521,192 | $2,893,687 |
The accompanying notes to consolidated financial statements are an integral part of this statement.
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