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.

McKesson Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Mar 31, 2016	Mar 31, 2015	Mar 31, 2014	Mar 31, 2013	Mar 31, 2012	Mar 31, 2011
Net income	2,310)	1,543)	1,258)	1,338)	1,403)	1,202)
Discontinued operation, gain on sale, net of tax	—)	—)	—)	—)	—)	(72)
Depreciation	281)	306)	186)	146)	140)	139)
Amortization	604)	711)	518)	445)	411)	357)
Deferred taxes	64)	171)	16)	606)	164)	128)
Share-based compensation expense	123)	174)	160)	167)	154)	137)
Gain from sales of businesses	(103)	—)	—)	—)	—)	—)
Gain on business combination	—)	—)	—)	(81)	—)	—)
Impairment charges and impairment of equity investment	8)	241)	—)	191)	—)	—)
Charges associated with last-in-first-out inventory method	244)	337)	311)	—)	—)	—)
Other non-cash items	108)	47)	130)	94)	96)	102)
Adjustments to reconcile to net cash provided by operating activities	1,329)	1,987)	1,321)	1,568)	965)	863)
Receivables	(1,957)	(2,821)	(885)	326)	(770)	(673)
Inventories	(1,251)	(2,144)	(1,201)	(59)	(878)	367)
Drafts and accounts payable	3,302)	4,718)	2,412)	(125)	2,027)	533)
Deferred revenue	(120)	(141)	(36)	(25)	66)	42)
Taxes	(78)	(222)	218)	(80)	15)	33)
Changes in operating assets and liabilities, net of acquisitions	(104)	(610)	508)	37)	460)	302)
Claim and litigation charges	—)	150)	68)	72)	149)	213)
Litigation settlement payments	—)	—)	(105)	(483)	(26)	(26)
Other	137)	42)	86)	(49)	(1)	(144)
Net cash provided by operating activities	3,672)	3,112)	3,136)	2,483)	2,950)	2,338)
Payments for property, plant and equipment	(488)	(376)	(278)	(246)	(225)	(233)
Capitalized software expenditures	(189)	(169)	(141)	(160)	(178)	(155)
Acquisitions, net of cash and cash equivalents acquired	(40)	(170)	(4,634)	(1,873)	(1,156)	(292)
Proceeds from sale of businesses and equity investment, net	210)	15)	97)	—)	—)	109)
Restricted cash for acquisitions	(939)	—)	46)	—)	—)	—)
Other	(111)	23)	(136)	70)	57)	(53)
Net cash used in investing activities	(1,557)	(677)	(5,046)	(2,209)	(1,502)	(624)
Proceeds from short-term borrowings	1,561)	3,100)	6,145)	2,225)	400)	1,000)
Repayments of short-term borrowings	(1,688)	(3,152)	(6,122)	(2,625)	—)	(1,000)
Proceeds from issuances of long-term debt	—)	3)	4,114)	1,798)	—)	1,689)
Repayments of long-term debt	(1,598)	(353)	(356)	(1,143)	(430)	(1,730)
Common stock transactions, issuances	123)	152)	177)	166)	167)	367)
Common stock transactions, share repurchases, including shares surrendered for tax withholding	(1,612)	(450)	(130)	(1,214)	(1,874)	(2,050)
Common stock transactions, dividends paid	(244)	(227)	(214)	(194)	(195)	(171)
Other	5)	(41)	5)	31)	27)	54)
Net cash provided by (used in) financing activities	(3,453)	(968)	3,619)	(956)	(1,905)	(1,841)
Effect of exchange rate changes on cash and cash equivalents	45)	(319)	28)	(11)	(6)	8)
Net increase (decrease) in cash and cash equivalents	(1,293)	1,148)	1,737)	(693)	(463)	(119)
Cash and cash equivalents at beginning of year	5,341)	4,193)	2,456)	3,149)	3,612)	3,731)
Cash and cash equivalents at end of year	4,048)	5,341)	4,193)	2,456)	3,149)	3,612)

Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31).

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Cash flow statement item	Description	The company
Net cash provided by 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.	McKesson Corp. net cash provided by operating activities decreased from 2014 to 2015 but then increased from 2015 to 2016 exceeding 2014 level.
Net cash used in 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.	McKesson Corp. net cash used in investing activities increased from 2014 to 2015 but then slightly decreased from 2015 to 2016.
Net cash provided by (used in) 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.	McKesson Corp. net cash provided by (used in) financing activities decreased from 2014 to 2015 and from 2015 to 2016.

McKesson Corp. (NYSE:MCK)

Cash Flow Statement