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.

Zoetis Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income before allocation to noncontrolling interests	2,340)	2,111)	2,034)	1,636)	1,500)
Depreciation and amortization expense	491)	465)	448)	441)	412)
Share-based compensation expense	60)	62)	58)	59)	67)
Asset write-offs and asset impairments	46)	53)	47)	43)	7)
Net gain on sale of businesses, excluding transaction costs	(118)	—)	—)	—)	—)
Provision for losses on inventory	115)	76)	46)	105)	68)
Deferred taxes	(61)	(286)	(80)	(62)	(79)
Settlement of derivative contracts	—)	114)	—)	(6)	—)
Employee benefit plan contribution from Pfizer Inc.	—)	3)	3)	3)	3)
Other non-cash adjustments	(8)	13)	—)	(8)	(32)
Accounts receivable	(102)	(137)	(155)	74)	(69)
Inventories	(361)	(486)	(366)	(346)	(104)
Other assets	(95)	35)	(7)	(68)	(51)
Accounts payable	13)	(29)	(17)	147)	(10)
Other liabilities	67)	(180)	227)	91)	91)
Other tax accounts, net	(34)	98)	(25)	17)	(8)
Other changes in assets and liabilities, net of acquisitions and divestitures	(512)	(699)	(343)	(85)	(151)
Adjustments to reconcile net income before noncontrolling interests to net cash provided by operating activities	13)	(199)	179)	490)	295)
Net cash provided by operating activities	2,353)	1,912)	2,213)	2,126)	1,795)
Capital expenditures	(732)	(586)	(477)	(453)	(460)
Acquisitions, net of cash acquired	(155)	(312)	(14)	(113)	(195)
Purchase of investments	(4)	(9)	(12)	—)	—)
Proceeds from maturities and redemptions of investments	—)	—)	—)	—)	101)
Proceeds from derivative instrument activity, net	12)	23)	44)	(27)	37)
Proceeds from sale of businesses, net of cash sold	96)	—)	—)	—)	—)
Net proceeds from sale of assets	4)	1)	2)	21)	21)
Other investing activities	2)	—)	(1)	—)	(8)
Net cash used in investing activities	(777)	(883)	(458)	(572)	(504)
Increase (decrease) in short-term borrowings, net	1)	2)	(4)	4)	(9)
Principal payments on long-term debt	(1,350)	—)	(600)	(500)	—)
Proceeds from issuance of long-term debt, senior notes, net of discount	—)	1,348)	—)	1,240)	—)
Payment of debt issuance costs	—)	(10)	—)	(12)	—)
Payment of consideration related to previous acquisitions	(3)	(1)	(6)	(2)	(9)
Share-based compensation-related proceeds, net of taxes paid on withholding shares	27)	(38)	(35)	20)	7)
Purchases of treasury stock	(1,092)	(1,594)	(743)	(250)	(626)
Cash dividends paid	(692)	(611)	(474)	(380)	(314)
Acquisition of a noncontrolling interest, net of cash acquired	—)	—)	—)	3)	—)
Net cash provided by (used in) financing activities	(3,109)	(904)	(1,862)	123)	(951)
Effect of exchange-rate changes on cash and cash equivalents	(7)	(29)	(12)	(7)	(8)
Net increase (decrease) in cash and cash equivalents	(1,540)	96)	(119)	1,670)	332)
Cash and cash equivalents at beginning of period	3,581)	3,485)	3,604)	1,934)	1,602)
Cash and cash equivalents at end of period	2,041)	3,581)	3,485)	3,604)	1,934)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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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.	Zoetis Inc. net cash provided by operating activities decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 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.	Zoetis Inc. net cash used in investing activities decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
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.	Zoetis Inc. net cash provided by (used in) financing activities increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Zoetis Inc. (NYSE:ZTS)

Cash Flow Statement