Consolidated Statements of Cash Flows
(in millions of dollars)
|
 |
|
| for the years ended December 31, |
|
2003 |
|
|
2002 |
|
2001 |
|
|
|
|
Cash Provided by (Used in) Operating Activities |
|
|
|
|
|
|
|
|
|
|
Net earnings—Consumer products |
|
$ 8,934 |
|
|
$11,072 |
|
$ 8,382 |
|
|
|
—Financial services |
|
270 |
|
|
30 |
|
178 |
|
|
|
|
Net earnings |
|
9,204 |
|
|
11,102 |
|
8,560 |
|
|
|
Adjustments to reconcile net earnings to operating cash flows: |
|
|
|
|
|
|
|
|
|
|
Consumer products |
|
|
|
|
|
|
|
|
|
|
Cumulative effect of accounting change |
|
|
|
|
|
|
6 |
|
|
|
Depreciation and amortization |
|
1,440 |
|
|
1,331 |
|
2,337 |
|
|
|
Deferred income tax provision |
|
717 |
|
|
1,310 |
|
277 |
|
|
|
Minority interest in earnings and other, net |
|
405 |
|
|
572 |
|
311 |
|
|
|
Domestic tobacco legal settlement, net of cash paid |
|
57 |
|
|
|
|
|
|
|
|
Domestic tobacco headquarters relocation charges,
net of cash paid |
|
35 |
|
|
|
|
|
|
|
|
Escrow bonds for Price and Engle domestic tobacco cases |
|
(610) |
|
|
|
|
(1,200) |
|
|
|
Integration costs and a loss on sale of a food factory,
net of cash paid |
|
(26) |
|
|
91 |
|
79 |
|
|
|
Asset impairment and exit costs, net of cash paid |
|
62 |
|
|
195 |
|
|
|
|
|
Gain on Miller Brewing Company transaction |
|
|
|
|
(2,631) |
|
|
|
|
|
Gains on sales of businesses |
|
(31) |
|
|
(80) |
|
(8) |
|
|
|
Cash effects of changes, net of the effects from
acquired and divested companies: |
|
|
|
|
|
|
|
|
|
|
Receivables, net |
|
295 |
|
|
(161) |
|
(320) |
|
|
|
Inventories |
|
251 |
|
|
38 |
|
(293) |
|
|
|
Accounts payable |
|
(220) |
|
|
(640) |
|
(309) |
|
|
|
Income taxes |
|
(119) |
|
|
(151) |
|
782 |
|
|
|
Accrued liabilities and other current assets |
|
(791) |
|
|
305 |
|
(1,375) |
|
|
|
Settlement charges |
|
497 |
|
|
(189) |
|
480 |
|
|
|
Pension plan contributions |
|
(1,169) |
|
|
(1,104) |
|
(350) |
|
|
|
Other |
|
500 |
|
|
86 |
|
(500) |
|
|
|
Financial services |
|
|
|
|
|
|
|
|
|
|
Deferred income tax provision |
|
267 |
|
|
275 |
|
408 |
|
|
|
Provision for airline industry exposure |
|
|
|
|
290 |
|
|
|
|
|
Other |
|
52 |
|
|
(27) |
|
8 |
|
|
|
|
Net cash provided by operating activites |
|
10,816 |
|
|
10,612 |
|
8,893 |
|
|
|
|
Cash Provided by (Used in) Investing Activities
|
|
|
|
|
|
|
|
|
|
|
Consumer products |
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
(1,974) |
|
|
(2,009) |
|
(1,922) |
|
|
|
Purchase of businesses, net of acquired cash |
|
(1,041) |
|
|
(147) |
|
(451) |
|
|
|
Proceeds from sales of businesses |
|
96 |
|
|
221 |
|
21 |
|
|
|
Other |
|
125 |
|
|
54 |
|
139 |
|
|
|
Financial services |
|
|
|
|
|
|
|
|
|
|
Investments in finance assets |
|
(140) |
|
|
(950) |
|
(960) |
|
|
|
Proceeds from finance assets |
|
507 |
|
|
360 |
|
257 |
|
|
|
|
Net cash used in investing activities |
|
(2,427) |
|
|
(2,471) |
|
(2,916) |
|
|
|
|
Cash Provided by (Used in) Financing Activities |
|
|
|
|
|
|
|
|
|
|
Consumer Products |
|
|
|
|
|
|
|
|
|
|
Net repayment of short-term borrowings |
|
$ (419) |
|
|
$ (473) |
|
$(5,678) |
|
|
|
Long-term debt proceeds |
|
3,077 |
|
|
5,325 |
|
4,079 |
|
|
|
Long-term debt repaid |
|
(1,871) |
|
|
(2,024) |
|
(5,215) |
|
|
|
Financial services |
|
|
|
|
|
|
|
|
|
|
Net repayment of short-term borrowings |
|
|
|
|
(512) |
|
(515) |
|
|
|
Long-term debt proceeds |
|
|
|
|
440 |
|
557 |
|
|
|
Long-term debt repaid |
|
(147) |
|
|
|
|
|
|
|
|
Repurchase of Altria Group, Inc. common stock |
|
(777) |
|
|
(6,220) |
|
(3,960) |
|
|
|
Repurchase of Kraft Foods Inc. common stock |
|
(372) |
|
|
(170) |
|
|
|
|
|
Dividends paid on Altria Group, Inc. common stock |
|
(5,285) |
|
|
(5,068) |
|
(4,769) |
|
|
|
Issuance of Altria Group, Inc. common stock |
|
443 |
|
|
724 |
|
779 |
|
|
|
Issuance of Kraft Foods Inc. common stock |
|
|
|
|
|
|
8,425 |
|
|
|
Other |
|
(108) |
|
|
(187) |
|
(143) |
|
|
|
|
Net cash used in financing activities |
|
(5,459) |
|
|
(8,165) |
|
(6,440) |
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
282 |
|
|
136 |
|
(21) |
|
|
|
|
Cash and cash equivalents: |
|
|
|
|
|
|
|
|
|
|
Increase (decrease) |
|
3,212 |
|
|
112 |
|
(484) |
|
|
|
Balance at beginning of year |
|
565 |
|
|
453 |
|
937 |
|
|
|
|
Balance at end of year |
|
$ 3,777 |
|
|
$ 565 |
|
$ 453 |
|
|
|
|
Cash paid: Interest—Consumer products |
|
$ 1,336 |
|
|
$ 1,355 |
|
$ 1,689 |
|
|
|
|
—Financial services |
|
$ 120 |
|
|
$ 88 |
|
$ 76 |
|
|
|
|
Income taxes |
|
$ 4,158 |
|
|
$ 4,818 |
|
$ 3,775 |
|
|
|
See notes to consolidated financial statements. |
