Kellogg
Company and Subsidiaries
Consolidated
Statement of Cash Flows
| (millions) | 2007 | 2006 | 2005 | |||||||||
|
Operating activities
|
||||||||||||
|
Net earnings
|
$ | 1,103 | $ | 1,004 | $ | 980 | ||||||
|
Adjustments to reconcile net earnings to operating cash flows:
|
||||||||||||
|
Depreciation and amortization
|
372 | 353 | 392 | |||||||||
|
Deferred income taxes
|
(69 | ) | (44 | ) | (59 | ) | ||||||
|
Other (a)
|
183 | 235 | 199 | |||||||||
|
Pension and other postretirement benefit contributions
|
(96 | ) | (99 | ) | (397 | ) | ||||||
|
Changes in operating assets and liabilities
|
10 | (39 | ) | 28 | ||||||||
|
Net cash provided by operating activities
|
$ | 1,503 | $ | 1,410 | $ | 1,143 | ||||||
|
Investing activities
|
||||||||||||
|
Additions to properties
|
$ | (472 | ) | $ | (453 | ) | $ | (374 | ) | |||
|
Acquisitions of businesses
|
(128 | ) | — | (50 | ) | |||||||
|
Investments in joint ventures and other
|
(4 | ) | (1 | ) | — | |||||||
|
Property disposals
|
3 | 9 | 9 | |||||||||
|
Net cash used in investing activities
|
$ | (601 | ) | $ | (445 | ) | $ | (415 | ) | |||
|
Financing activities
|
||||||||||||
|
Net increase (reduction) of notes payable, with maturities
less than or equal to 90 days |
$ | 625 | $ | (344 | ) | $ | 360 | |||||
|
Issuances of notes payable, with maturities greater than
90 days
|
804 | 1,065 | 42 | |||||||||
|
Reductions of notes payable, with maturities greater than
90 days
|
(1,209 | ) | (565 | ) | (42 | ) | ||||||
|
Issuances of long-term debt
|
750 | — | 647 | |||||||||
|
Reductions of long-term debt
|
(802 | ) | (85 | ) | (1,041 | ) | ||||||
|
Net issuances of common stock
|
163 | 218 | 222 | |||||||||
|
Common stock repurchases
|
(650 | ) | (650 | ) | (664 | ) | ||||||
|
Cash dividends
|
(475 | ) | (450 | ) | (435 | ) | ||||||
|
Other
|
6 | 22 | 6 | |||||||||
|
Net cash used in financing activities
|
$ | (788 | ) | $ | (789 | ) | $ | (905 | ) | |||
|
Effect of exchange rate changes on cash
|
(1 | ) | 16 | (21 | ) | |||||||
|
Increase (decrease) in cash and cash equivalents
|
$ | 113 | $ | 192 | $ | (198 | ) | |||||
|
Cash and cash equivalents at beginning of year
|
411 | 219 | 417 | |||||||||
|
Cash and cash equivalents at end of year
|
$ | 524 | $ | 411 | $ | 219 | ||||||
| (a) | Consists principally of non-cash expense accruals for employee compensation and benefit obligations. |
33
