(millions) 2003 2002 2001 Operating activities Net earnings $ 1,841 $ 1,654 $ 1,368 Reconciliation to cash flow: Depreciation and amortization 1,320 1,212 1,079 Bad debt provision 532 460 230 Deferred tax provision 249 248 49 Loss on disposal of fixed assets, net 54 67 52 Other non-cash items affecting earnings 11 159 160 Changes in operating accounts providing/(requiring) cash: Accounts receivable (744) (2,194) (1,193) Inventory (583) (311) (201) Other current assets (255) 15 (91) Other assets (196) (174) (178) Accounts payable 764 524 584 Accrued liabilities 57 (21) 29 Income taxes payable 91 (79) 124 Other 19 30 — Cash flow provided by operations 3,160 1,590 2,012 Investing activities Expenditures for property and equipment (3,004) (3,221) (3,163) Increase in receivable-backed securities — — (174) Proceeds from disposals of property and equipment 85 32 32 Other — — (5) Cash flow required for investing activities (2,919) (3,189) (3,310) Financing activities Decrease in notes payable, net (100) — (808) Additions to long-term debt 1,200 3,153 3,250 Reductions of long-term debt (1,172) (1,071) (793) Dividends paid (237) (218) (203) Repurchase of stock — (14) (20) Other 26 8 15 Cash flow (required for)/provided by financing activities (283) 1,858 1,441 Net (decrease)/increase in cash and cash equivalents (42) 259 143 Cash and cash equivalents at beginning of year 758 499 356 Cash and cash equivalents at end of year $ 716 $ 758 $ 499 Amounts presented herein are on a cash basis and therefore may differ from those shown in other sections of this Annual Report. Cash paid for income taxes was $781 million, $853 million and $666 million during 2003, 2002 and 2001, respectively. Cash paid for interest (including interest capitalized) was $550 million, $526 million and $477 million during 2003, 2002 and 2001, respectively. See Notes to Consolidated Financial Statements throughout pages 30-39. 28 CONSOLIDATED STATEMENTS OF CASH FLOWS