F-12 (In Millions of New Taiwan or U.S. Dollars)  CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year Ended December 31 2008  2009  2010  NT$ NT$ NT$ US$ (Note 3) CASH FLOWS FROM OPERATING ACTIVITIES Consolidated net income $  45,792  $  44,495  $  48,558  $  1,666 Adjustments to reconcile net income to net cash provided  by operating activities: Provision for doubtful accounts 505  462  230  8 Depreciation and amortization 38,216  36,320  34,064  1,169 Amortization of premium of financial assets 3  16  38  1 Loss on disposal of financial instruments, net 672  142  157  5 Valuation loss on inventory 59  56  17  1 Valuation loss (gain) on financial instruments, net (551) (99) 11  — Loss on disposal of property, plant and equipment, net 278  7  216  7 Equity in losses (earnings) of equity method investees, net (64) 23  (151) (5) Dividends received from equity investees  217  89  36  1 Loss arising from natural calamities  —  149  19  Impairment loss on assets  1,168  110  125  4 Loss on disposal of leased assets, net  1  —  —  — Deferred income taxes  (156) 1,099  27  1 Changes in operating assets and liabilities:  Decrease (increase) in:  Financial assets held for trading (207) 221  32  1 Trade notes and accounts receivable 127  (1,492) (2,749) (94) Receivables from related parties (389) (70) (36) (1) Other monetary assets  4,841  350  (288) (10) Inventories  (270) (144) (492) (17) Other current assets  (1,181) 510  (858) (30) Increase (decrease) in:  Financial liabilities held for trading —  —  —  — Trade notes and accounts payable 190  (1,565) 2,237  77 Payables to related parties  656  (206) (260) (9) Income tax payable  (1,571) (1,377) 257  9 Accrued expenses  907  950  954  33 Other current liabilities 809  777  2,447  84 Deferred income  567  422  105  4 Accrued pension liabilities  1,244  (3,960) 73  3 Net cash provided by operating activities 91,863  77,285  84,769  2,909 CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of designated financial assets at fair value through  profit or loss —  (45) (34) (1) Proceeds from disposal of financial assets at fair value through  profit or loss —  63  21  1 Acquisition of available-for-sale financial assets  (8,759) (9,263) (3,342) (115) Proceeds from disposal of available-for-sale financial assets 8,425  8,097  19,195  659 Acquisition of held-to-maturity financial assets  (3,327) (2,100) (6,917) (237) Proceeds from disposal of held-to-maturity financial assets 660  869  1,538  53 Acquisition of financial assets carried at cost  (486) (142) (384) (13) Proceeds from disposal of financial assets carried at cost 355  302  59  2 Acquisition of investments accounted for using equity method (555) (560) (35) (1) Proceeds from disposal of long-term investment  44  —  —  —  Decrease in other monetary assets  (30) Proceeds from sale of other monetary assets  29  —  —  —  Acquisition of property, plant and equipment  (30,119) (25,478) (24,617) (845) Proceeds from disposal of property, plant and equipment  14  65  82  3 Increase in intangible assets  (208) (274) (278) (10) (Continued) 