Consolidated Statements of Cash Flows

for the years ended December 31,

€ millions 2007 2006 2005
Net income 1,919 1,871 1,496
Net income from discontinued operations 15 10 6
Minority interests 2
 		2 3
Income from continuing operations before minority interests 1,936 1,883 1,505
Adjustments to reconcile income before minority interests to net cash provided by operating activities:      
Depreciation and amortization 261 214 204
Gains/losses from equity investees 1 1 – 1
Gains/losses on disposal of intangible assets and property, plant, and equipment 1 – 2 – 5
Losses on disposal of investments – 2 0 – 1
Writeups/downs of financial assets
 8 0 14
Allowances for doubtful accounts 0 – 40 – 25
Impacts of STAR hedging 21 – 79 7
Stock-based compensation including income tax benefits 13 82 50
Excess tax benefit from stock-based compensation 0 – 3 0
Deferred income taxes 8 – 2 – 16
Change in accounts receivable – 521 – 230 – 295
Change in other assets – 322 – 216 – 63
Change in accrued and other liabilities 423 130 164
Change in deferred income 123 117 74
Net cash provided by operating activities from continuing operations 1,950 1,855 1,612
Acquisition of minority interests in subsidiaries – 48 0 – 60
Business combinations, net of cash and cash equivalents acquired – 672 – 504 – 177
Purchase of intangible assets and property, plant, and equipment – 401 – 365 – 253
Proceeds from disposal of intangible assets and property, plant, and equipment 27 29 17
Cash transferred to restricted cash accounts
 – 550 0 0
Purchase of investments – 768 – 2,055 – 4,485
Sales of investments 1,025 2,765 4,388
Purchase of other financial assets – 20 – 17 – 17
Sales of other financial assets 15 15 13
Net cash used in investing activities from continuing operations – 1,392 – 132 – 574
Dividends paid – 556 – 447 – 340
Purchase of treasury stock – 1,005 – 1,149 – 454
Proceeds from reissuance of treasury stock 156 165 205
Proceeds from issuance of common stock (stock-based compensation) 44 49 43
Excess tax benefit from stock-based compensation 0 3 0
Repayment of bonds 0 – 1 0
Proceeds from short-term and long-term debt 47 44 338
Repayments of short-term and long-term debt – 48 – 43 – 339
Proceeds from the exercise of equity-based derivative instruments (STAR hedge) 75 57 39
Purchase of equity-based derivative instruments (STAR hedge) 0 – 53 – 47
Net cash used in financing activities from continuing operations – 1,287 – 1,375 – 555
Effect of foreign exchange rates on cash and cash equivalents – 49 – 3 88
Net cash used in operating activities from discontinued operations – 12 – 8 – 4
Net cash used in investing activities from discontinued operations – 1 – 2 – 9
Net cash used in financing activities from discontinued operations 0 0 0
Net cash used in discontinued operations – 13 – 10 – 13
Net change in cash and cash equivalents – 791 335 558
Cash and cash equivalents at the beginning of the period 2,399 2,064 1,506
Cash and cash equivalents at the end of the period 1,608 2,399 2,064

The accompanying Notes are an integral part of these Consolidated Financial Statements.