(In Millions of New Taiwan or U.S. Dollars)  Year Ended December 31 2008 2009 2010 NT$ NT$ NT$ US$ (Note 3) Decrease (increase) in restricted assets  (3) (91) 31  1  Increase in other assets  (566) (914) (2,682) (93) Net cash used in investing activities  (34,526) (29,471) (17,363) (596) CASH FLOWS FROM FINANCING ACTIVITIES Increase (decrease) in short-term loans  222  485  (648) (22) Increase in short-term note payable  —  —  230  8  Increase in long-term loans  400  3,238  111  Repayment of long-term loans  (37) (124) (119) (4) Decrease in customers’ deposits  (127) (118) (81) (3) Increase (decrease) in other liabilities  (294) (198) 61  3  Cash dividends paid  (41,202) (37,139) (39,369) (1,351) Proceeds from exercise of employee stock option  granted by subsidiary  64  58  97  3  Decrease in minority interest  —  (697) (675) (23) Capital reduction  (9,558) (19,116) (9,697) (333) Remuneration to board of directors and supervisors  and bonus to employees  (1,394) —  —  —  Net cash used in financing activities  (52,326) (56,449) (46,963) (1,611) EFFECT OF EXCHANGE RATE CHANGES  31  (7) (63) (2) EFFECT OF CHANGE ON CONSOLIDATED SUBSIDIARIES  13  613  (2,764) (95) NET INCREASE (DECREASE) IN CASH AND CASH  EQUIVALENTS  5,055  (8,029) 17,616  605  CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR  76,233  81,288  73,259  2,514  CASH AND CASH EQUIVALENTS, END OF  YEAR  $  81,288  $  73,259  $  90,875  $  3,119  SUPPLEMENTAL INFORMATION Interest paid (excluding capitalized interest  expense)  $  4  $  14  $  98  $  3  Income tax paid  15,620  13,024  8,841  303  NON-CASH FINANCING ACTIVITIES Current portion of long-term loans $  8 $  117  $  309  $  11 Reclassification from common capital stock to due  to stockholders for capital reduction  $  19,116  $  9,697  $  19,394  $  666  CASH AND NON-CASH INVESTING ACTIVITIES Increase in property, plant and equipment  $  31,162  $  25,151  $  23,250  $  798  Payables to suppliers  (1,071) 359  1,356  47  Prepayments for equipment  28  (32) 11  —  $  30,119  $  25,478  $  24,617  $  845  (Continued)  F-13 CONSOLIDATED STATEMENTS OF CASH FLOWS  CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES 