Consolidated Statements of Cash Flows
(in millions of dollars)
|
 |
|
| for the years ended December 31, |
|
2004 |
|
|
2003 |
|
2002 |
|
|
|
|
Cash Provided by (Used in) Operating Activities |
|
|
|
|
|
|
|
|
|
|
Net earnings—Consumer products |
|
$ 9,330 |
|
|
$8,934 |
|
$11,072 |
|
|
|
—Financial services |
|
86 |
|
|
270 |
|
30 |
|
|
|
|
Net earnings |
|
9,416 |
|
|
9,204 |
|
11,102 |
|
|
|
Adjustments to reconcile net earnings to operating cash flows: |
|
|
|
|
|
|
|
|
|
|
Consumer products |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
1,607 |
|
|
1,440 |
|
1,331 |
|
|
|
Deferred income tax provision |
|
381 |
|
|
717 |
|
1,310 |
|
|
|
Minority interest in earnings from continuing
operations, and equity earnings, net |
|
44 |
|
|
405 |
|
572 |
|
|
|
Domestic tobacco legal settlement,
net of cash paid |
|
(57 |
) |
|
57 |
|
|
|
|
|
Domestic tobacco headquarters relocation
charges, net of cash paid |
|
(22 |
) |
|
35 |
|
|
|
|
|
Escrow bond for Price domestic tobacco case |
|
(820 |
) |
|
(610 |
) |
|
|
|
|
Integration costs and a loss on sale of a food
factory, net of cash paid |
|
(1 |
) |
|
(26 |
) |
91 |
|
|
|
Asset impairment and exit costs, net of cash paid |
|
510 |
|
|
62 |
|
195 |
|
|
|
Impairment loss on discontinued operations |
|
107 |
|
|
|
|
|
|
|
|
Gain on Miller Brewing Company transaction |
|
|
|
|
|
|
(2,631 |
) |
|
|
Losses (gains) on sales of businesses |
|
3 |
|
|
(31 |
) |
(80 |
) |
|
|
Cash effects of changes, net of the effects from
acquired and divested companies: |
|
|
|
|
|
|
|
|
|
|
Receivables, net |
|
(193 |
) |
|
295 |
|
(161 |
) |
|
|
Inventories |
|
(140 |
) |
|
251 |
|
38 |
|
|
|
Accounts payable |
|
49 |
|
|
(220 |
) |
(640 |
) |
|
|
Income taxes |
|
(502 |
) |
|
(119 |
) |
(151 |
) |
|
|
Accrued liabilities and other current assets |
|
785 |
|
|
(588 |
) |
489 |
|
|
|
Domestic tobacco accrued settlement charges |
|
(31 |
) |
|
497 |
|
(189 |
) |
|
|
Pension plan contributions |
|
(1,078 |
) |
|
(1,183 |
) |
(1,104 |
) |
|
|
Pension provisions and postretirement, net |
|
425 |
|
|
278 |
|
250 |
|
|
|
Other |
|
314 |
|
|
33 |
|
(348 |
) |
|
|
Financial services |
|
|
|
|
|
|
|
|
|
|
Deferred income tax provision |
|
7 |
|
|
267 |
|
275 |
|
|
|
Provision for airline industry exposure |
|
140 |
|
|
|
|
290 |
|
|
|
Other |
|
(54 |
) |
|
52 |
|
(27 |
) |
|
|
|
Net cash provided by operating activites |
|
10,890 |
|
|
10,816 |
|
10,612 |
|
|
|
|
Cash Provided by (Used in) Investing Activities
|
|
|
|
|
|
|
|
|
|
|
Consumer products |
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
(1,913 |
) |
|
(1,974 |
) |
(2,009 |
) |
|
|
Purchase of businesses, net of acquired cash |
|
(179 |
) |
|
(1,041 |
) |
(147 |
) |
|
|
Proceeds from sales of businesses |
|
18 |
|
|
96 |
|
221 |
|
|
|
Other |
|
24 |
|
|
125 |
|
54 |
|
|
|
Financial services |
|
|
|
|
|
|
|
|
|
|
Investments in finance assets |
|
(10 |
) |
|
(140 |
) |
(950 |
) |
|
|
Proceeds from finance assets |
|
644 |
|
|
507 |
|
360 |
|
|
|
|
Net cash used in investing activities |
|
(1,416 |
) |
|
(2,427 |
) |
(2,471 |
) |
|
|
|
Cash Provided by (Used in) Financing Activities |
|
|
|
|
|
|
|
|
|
|
Consumer Products |
|
|
|
|
|
|
|
|
|
|
Net repayment of short-term borrowings |
|
$(1,090 |
) |
|
$ (419 |
) |
$ (473 |
) |
|
|
Long-term debt proceeds |
|
833 |
|
|
3,077 |
|
5,325 |
|
|
|
Long-term debt repaid |
|
(1,594 |
) |
|
(1,871 |
) |
(2,024 |
) |
|
|
Financial services |
|
|
|
|
|
|
|
|
|
|
Net repayment of short-term borrowings |
|
|
|
|
|
|
(512 |
) |
|
|
Long-term debt proceeds |
|
|
|
|
|
|
440 |
|
|
|
Long-term debt repaid |
|
(189 |
) |
|
(147 |
) |
|
|
|
|
Repurchase of Altria Group, Inc. common stock |
|
|
|
|
(777 |
) |
(6,220 |
) |
|
|
Repurchase of Kraft Foods Inc. common stock |
|
(688 |
) |
|
(372 |
) |
(170 |
) |
|
|
Dividends paid on Altria Group, Inc. common stock |
|
(5,672 |
) |
|
(5,285 |
) |
(5,068 |
) |
|
|
Issuance of Altria Group, Inc. common stock |
|
827 |
|
|
443 |
|
724 |
|
|
|
Other |
|
(409 |
) |
|
(108 |
) |
(187 |
) |
|
|
|
Net cash used in financing activities |
|
(7,982 |
) |
|
(5,459 |
) |
(8,165 |
) |
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
475 |
|
|
282 |
|
136 |
|
|
|
|
Cash and cash equivalents: |
|
|
|
|
|
|
|
|
|
|
Increase |
|
1,967 |
|
|
3,212 |
|
112 |
|
|
|
Balance at beginning of year |
|
3,777 |
|
|
565 |
|
453 |
|
|
|
|
Balance at end of year |
|
$ 5,744 |
|
|
|
|
|
|
|
|
|
| Cash paid: Interest |
—Consumer products |
|
|
$ 1,397 |
|
|
|
|
|
|
|
|
|
|
|
$ 97 |
|
|
|
|
|
|
|
|
|
Income taxes |
|
$ 4,448 |
|
|
|
|
|
|
|
|
See notes to consolidated financial statements.
|
|