Condensed Statements of Consolidated Cash Flows (As of December 31, in millions) 2001 2000 Cash flows — operating activities Net income $677 $916 Loss on extraordinary items 154 — Depreciation and amortization 1,418 1,419 Deferred income taxes and tax credits (96) 48 Losses (gains) from the sale of assets 228 (229) Other (272) 267 Changes in operating assets and liabilities 163 (733) Cash provided by operating activities 2,272 1,688 Cash flows — financing activities Issuances of securities 7,113 3,925 Retirements/repurchases of securities (8,525) (3,277) Change in notes payable 101 45 Common stock and preference stock dividends paid (643) (645) Debt premium, discount, refinancing and reacquisition expenses (255) (35) Cash provided by (used in) financing activities (2,209) 13 Cash flows — investing activities Acquisitions of businesses (225) (809) Proceeds from sale of assets 1,482 832 Capital expenditures and other (1,190) (1,226) Cash provided by (used in) investing activities 67 (1,203) Effect of exchange rates on cash and cash equivalents (8) (19) Net change in cash and cash equivalents 122 479 Cash and cash equivalents — beginning balance 1,039 560 Cash and cash equivalents — ending balance $1,161 $1,039