Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Diageo PLC, consolidated cash flow statement

US$ in millions, translated from GBP £

12 months ended:	Jun 30, 2014	Jun 30, 2013	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009
Profit for the year	3,683)	4,299)	3,370)	3,134)	2,683)	2,789)
Discontinued operations	140)	—)	18)	—)	29)	(3)
Taxation	755)	877)	1,688)	533)	734)	472)
Share of after tax results of associates and joint ventures	(426)	(330)	(346)	(273)	(219)	(265)
Net finance charges	655)	703)	646)	617)	711)	957)
Non-operating items	(236)	138)	(239)	22)	23)	—)
Operating profit	4,572)	5,686)	5,136)	4,032)	3,962)	3,950)
Net (increase) decrease in working capital	(1,008)	(916)	(860)	(174)	514)	(456)
Depreciation, amortization and impairment	1,062)	668)	668)	547)	573)	446)
Dividends received	385)	336)	270)	214)	171)	289)
Post employment payments less amounts included in operating profit	(331)	(825)	(325)	—)	—)	—)
Other items	(135)	75)	(2)	(146)	(319)	16)
Cash generated from operations	4,545)	5,023)	4,887)	4,473)	4,901)	4,246)
Interest received	242)	215)	257)	331)	473)	102)
Interest paid	(971)	(923)	(893)	(814)	(942)	(773)
Taxation paid	(792)	(921)	(847)	(567)	(730)	(844)
Net cash from operating activities	3,023)	3,394)	3,404)	3,423)	3,702)	2,731)
Disposal of property, plant and equipment and computer software	135)	65)	63)	73)	220)	23)
Purchase of property, plant and equipment and computer software	(1,084)	(1,066)	(787)	(651)	(576)	(529)
Movements in loans and other investments	12)	27)	(2)	2)	(66)	(39)
Payment into escrow in respect of the UK Pension Scheme	—)	—)	—)	—)	—)	(81)
Sale of businesses	3)	(27)	83)	53)	2)	2)
Acquisition of businesses	(905)	(1,067)	(2,309)	(182)	(317)	(165)
Net cash outflow from investing activities	(1,839)	(2,068)	(2,952)	(705)	(737)	(789)
Proceeds from issue of share capital	2)	—)	2)	2)	—)	—)
Net sale (purchase) of own shares for share schemes	(191)	(18)	—)	(14)	131)	(61)
Own shares repurchased	—)	—)	—)	—)	—)	(572)
Dividends paid to non-controlling interests	(149)	(184)	(192)	(174)	(165)	(158)
Proceeds from non-controlling interests	—)	—)	18)	—)	—)	—)
Purchase of shares of non-controlling interests	(62)	(331)	(252)	—)	—)	—)
Net movements on borrowings	(265)	2,045)	833)	(643)	(650)	414)
Equity dividends paid	(2,074)	(1,864)	(1,685)	(1,512)	(1,407)	(1,407)
Net cash outflow from financing activities	(2,739)	(353)	(1,277)	(2,342)	(2,090)	(1,785)
Exchange differences	(324)	60)	(44)	(106)	(25)	107)
Net increase (decrease) in net cash and cash equivalents	(1,880)	1,032)	(868)	270)	850)	264)
Net cash and cash equivalents at beginning of the year	2,778)	1,720)	2,557)	2,172)	1,302)	1,104)
Net cash and cash equivalents at end of the year	898)	2,753)	1,688)	2,443)	2,152)	1,368)

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

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Cash flow statement item	Description	The company
Net cash from operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	Diageo PLC net cash from operating activities decreased from 2012 to 2013 and from 2013 to 2014.
Net cash outflow from investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	Diageo PLC net cash outflow from investing activities increased from 2012 to 2013 and from 2013 to 2014.
Net cash outflow from financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	Diageo PLC net cash outflow from financing activities increased from 2012 to 2013 but then decreased significantly from 2013 to 2014.

Diageo PLC (NYSE:DEO)

Cash Flow Statement