Eme r s on 2013 Ann u al R e por t 35 E m E rso N E l E ctric co su B si D iari E s Y e a r s e n d e d S e p t e m b e r 3 0 D o l l a r s i n m i l l i o ns 2011 2012 2013 o perating activities Net earnings 2530 2024 2066 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation and amortization 867 823 819 Changes in operating working capital 301 340 42 Pension funding 142 163 160 Goodwill impairment net of tax 19 528 496 Other 260 181 386 Net cash provided by operating activities 3233 3053 3649 i nvesting activities Capital expenditures 647 665 678 Purchases of businesses net of cash and equivalents acquired 232 187 19 Divestitures of businesses 103 125 3 Other 72 79 95 Net cash used in investing activities 848 806 789 f inancing activities Net increase in shortterm borrowings 185 348 374 Proceeds from longterm debt 1 4 496 Principal payments on longterm debt 57 262 521 Dividends paid 1039 1171 1181 Purchases of treasury stock 935 797 1110 Other 42 21 9 Net cash used in financing activities 1887 1899 1933 Effect of exchange rate changes on cash and equivalents 38 33 19 i ncrease in cash and equivalents 460 315 908 Beginning cash and equivalents 1592 2052 2367 Ending cash and equivalents 2052 2367 3275 c hanges in operating working capital Receivables 475 536 84 Inventories 12 49 83 Other current assets 41 19 32 Accounts payable 194 143 14 Accrued expenses 54 91 64 Income taxes 19 8 3 Total changes in operating working capital 301 340 42 c o N s o li D a t ED s t a t E m EN ts o f c a s h fl o w s S e e a cc o m p a n y i n g N o t e s t o C o ns o l i d a t e d F i n a n c i a l S t a t e m e n t s