Kellogg Company and Subsidiaries Consolidated Statement of Cash Flows (millions) 2003 2002 2001 Operating activities Net earnings $ 787.1 $ 720.9 $ 473.6 Adjustments to reconcile net earnings to operating cash flows: Depreciation and amortization 372.8 349.9 438.6 Deferred income taxes 74.8 111.2 71.5 Restructuring charges, net of cash paid — — 31.2 Other 76.1 67.0 (77.5) Pension and other postretirement benefit plan contributions (184.2) (446.6) (76.3) Changes in operating assets and liabilities 44.4 197.5 270.9 Net cash provided from operating activities $1,171.0 $999.9 $1,132.0 Investing activities Additions to properties ($ 247.2) ($253.5) ($ 276.5) Acquisitions of businesses — (2.2) (3,858.0) Dispositions of businesses 14.0 60.9 — Property disposals 13.8 6.0 10.1 Other .4 — (19.4) Net cash used in investing activities ($ 219.0) ($ 188.8) ($4,143.8) Financing activities Net increase (reduction) of notes payable, with maturities less than or equal to 90 days $ 208.5 ($226.2) ($ 154.0) Issuances of notes payable, with maturities greater than 90 days 67.0 354.9 549.6 Reductions of notes payable, with maturities greater than 90 days (375.6) (221.1) (365.6) Issuances of long-term debt 498.1 — 5,001.4 Reductions of long-term debt (956.0) (439.3) (1,608.4) Net issuances of common stock 12 1.6 100.9 26.4 Common stock repurchases (90.0) (101.0) — Cash dividends (412.4) (412.6) (409.8) Other (.6) — .6 Net cash provided from (used in) financing activities ($ 939.4) ($944.4) $3,040.2 Effect of exchange rate changes on cash 28.0 2.1 (1.0) Increase (decrease) in cash and cash equivalents $4 0.6 ($131.2) $ 27.4 Cash and cash equivalents at beginning of year 100.6 231.8 204.4 Cash and cash equivalents at end of year $ 141.2 $100.6 $ 231.8 Refer to Notes to Consolidated Financial Statements. Earning Our Stripes 34