Consolidated Statements of Cash Flows

    Years Ended December 31,  
(In millions)   2006     2005     2004  
CASH FLOWS FROM OPERATING ACTIVITIES                  
Net income $ 1,863   $ 1,824   $ 1,490  
Adjustments to reconcile net income to net cash provided by operating activities:                  
Depreciation and amortization (including amortization of nuclear fuel)   2,215     1,884     2,037  
Cumulative effect of change in accounting principle       4      
Gains on sales of investments in commercial and multi-family real estate   (201 )   (191 )   (201 )
Gains on sales of equity investments and other assets   (365 )   (1,771 )   (193 )
Impairment charges   48     159     194  
Deferred income taxes   250     282     867  
Minority Interest   61     538     195  
Equity in earnings of unconsolidated affiliates   (732 )   (479 )   (161 )
Purchased capacity levelization   (14 )   (14 )   92  
Contributions to company-sponsored pension plans   (172 )   (45 )   (279 )
(Increase) decrease in                  
Net realized and unrealized mark-to-market and hedging transactions   (134 )   443     216  
Receivables   844     (249 )   (231 )
Inventory   (24 )   (80 )   (48 )
Other current assets   1,276     (944 )   (33 )
Increase (decrease) in                  
Accounts payable   (1,524 )   117     (5 )
Taxes accrued   (69 )   53     188  
Other current liabilities   (594 )   622     91  
Capital expenditures for residential real estate   (322 )   (355 )   (322 )
Cost of residential real estate sold   143     294     268  
Other, assets   1,005     193     (155 )
Other, liabilities   194     533     158  
Net cash provided by operating activities   3,748     2,818     4,168  
CASH FLOWS FROM INVESTING ACTIVITIES                  
Capital expenditures   (3,381 )   (2,327 )   (2,161 )
Investment expenditures   (89 )   (43 )   (46 )
Acquisitions, net of cash acquired   (284 )   (294 )    
Cash acquired from acquisition of Cinergy   147          
Purchases of available-for-sale securities   (33,436 )   (40,317 )   (65,929 )
Proceeds from sales and maturities of available-for-sale securities   32,596     40,131     65,098  
Net proceeds from the sales of equity investments and other assets, and sales of and collections on notes receivable   2,861     2,375     1,619  
Proceeds from the sales of commercial and multi-family real estate   254     372     606  
Settlement of net investment hedges and other investing derivatives   (163 )   (296 )    
Distributions from equity investments   152     383      
Purchases of emission allowances   (228 )   (18 )    
Sales of emission allowances   194          
Other   49     (92 )   20  
Net cash used in investing activities   (1,328 )   (126 )   (793 )
CASH FLOWS FROM FINANCING ACTIVITIES                  
Proceeds from the:                  
Issuance of long-term debt   2,369     543     153  
Issuance of common stock and common stock related to employee benefit plans   127     41     1,704  
Payments for the redemption of:                  
Long-term debt   (2,098 )   (1,346 )   (3,646 )
Preferred stock of a subsidiary   (12 )   (134 )   (176 )
Decrease in cash overdrafts   (2 )        
Notes payable and commercial paper   (412 )   165     (67 )
Distributions to minority interests   (304 )   (861 )   (1,477 )
Contributions from minority interests   247     779     1,277  
Dividends paid   (1,488 )   (1,105 )   (1,065 )
Repurchase of common shares   (500 )   (933 )    
Proceeds from Duke Energy Income Fund   104     110      
Other   8     24     19  
Net cash used in financing activities   (1,961 )   (2,717 )   (3,278 )
Changes in cash and cash equivalents included in assets held for sale   (22 )   3     39  
Net increase (decrease) in cash and cash equivalents   437     (22 )   136  
Cash and cash equivalents at beginning of period   511     533     397  
Cash and cash equivalents at end of period $ 948   $ 511   $ 533  

Supplemental Disclosures
                 
Cash paid for interest, net of amount capitalized $ 1,154   $ 1,089   $ 1,323  
Cash paid (refunded) for income taxes $ 460   $ 546   $ (339 )
Acquisition of Cinergy Corp.                  
Fair value of assets acquired $ 17,304   $   $  
Liabilities assumed $ 12,709   $   $  
Issuance of common stock $ 8,993   $   $  
Significant non-cash transactions:                  
Conversion of convertible notes to stock $ 632   $ 28   $  
AFUDC-equity component $ 58   $ 30   $ 25  
Transfer of DEFS Canadian Facilities $   $ 97   $  
Debt retired in connection with disposition of business $   $   $ 840  
Note receivable from sale of southeastern plants $   $   $ 48  
Remarketing of senior notes $   $   $ 1,625  

 

See Notes to Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K.