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.
