Statement of Cash Flows
Difficulty: Beginner
The cash flow statement provides information about a company's cash receipts and cash payments during an accounting period, showing how these cash flaws link the ending cash balance to the beginning balance shown on the company's statement of financial position.
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.
Biogen Inc., Consolidated Statement of Cash Flows
USD $ in thousands
| 12 months ended | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income | 2,670,100 | 3,695,700 | 3,593,200 | 2,941,565 | 1,862,341 | ||||||
| Depreciation and amortization | 1,081,000 | 682,700 | 600,400 | 688,150 | 531,740 | ||||||
| Acquired in-process research and development | 120,000 | – | – | – | – | ||||||
| Share-based compensation | 128,000 | 154,800 | 161,400 | 155,302 | 136,293 | ||||||
| Deferred income taxes | 91,700 | (175,000) | (145,600) | (308,222) | (245,077) | ||||||
| Contingent consideration | 62,700 | – | – | – | – | ||||||
| Other | 162,100 | 91,200 | 82,200 | (50,320) | (27,612) | ||||||
| Accounts receivable | (435,600) | (241,400) | 29,000 | (512,389) | (126,753) | ||||||
| Due from anti-CD20 therapeutic programs | (232,000) | 13,900 | (31,100) | (30,697) | 15,733 | ||||||
| Inventory | (94,500) | (165,600) | (174,400) | (185,917) | (243,960) | ||||||
| Other assets | (76,600) | 59,100 | (127,000) | (94,514) | (160,188) | ||||||
| Accrued expenses and other current liabilities | (227,400) | 570,100 | 74,200 | 244,378 | 284,049 | ||||||
| Income tax assets and liabilities | 1,303,900 | (232,600) | (429,400) | 61,000 | 156,800 | ||||||
| Other liabilities | (2,400) | 69,500 | 83,200 | 33,779 | 161,712 | ||||||
| Changes in operating assets and liabilities, net | 235,400 | 73,000 | (575,500) | (484,360) | 87,393 | ||||||
| Adjustments to reconcile net income to net cash flows from operating activities | 1,880,900 | 826,700 | 122,900 | 550 | 482,737 | ||||||
| Net cash flows provided by operating activities | 4,551,000 | 4,522,400 | 3,716,100 | 2,942,115 | 2,345,078 | ||||||
| Proceeds from sales and maturities of marketable securities | 5,565,900 | 7,378,900 | 4,063,000 | 2,718,923 | 5,190,052 | ||||||
| Purchases of marketable securities | (5,355,200) | (7,913,200) | (6,864,900) | (3,583,150) | (3,278,091) | ||||||
| Acquisition of TYSABRI rights | – | – | – | – | (3,262,719) | ||||||
| Contingent consideration related to Fumapharm AG acquisition | (1,200,000) | (1,200,000) | (850,000) | (375,000) | (15,000) | ||||||
| Acquired in-process research and development | (120,000) | – | – | – | – | ||||||
| Acquisitions of businesses, net of cash acquired | – | – | (198,800) | – | – | ||||||
| Purchases of property, plant and equipment | (867,400) | (616,100) | (643,000) | (287,751) | (246,281) | ||||||
| Acquisitions of intangible assets | (975,400) | (111,600) | (15,400) | (28,200) | – | ||||||
| Other | (11,000) | (22,800) | (44,500) | 12,202 | 7,371 | ||||||
| Net cash flows used in investing activities | (2,963,100) | (2,484,800) | (4,553,600) | (1,542,976) | (1,604,668) | ||||||
| Purchase of treasury stock | (1,365,400) | (1,000,000) | (5,000,000) | (886,779) | (400,309) | ||||||
| Proceeds from (payments related to) issuance of stock for share-based compensation arrangements, net | (5,300) | 43,700 | 54,200 | 54,887 | 66,770 | ||||||
| Net distribution to noncontrolling interest | (134,100) | – | (56,100) | – | – | ||||||
| Proceeds from borrowings | – | – | 5,930,500 | – | – | ||||||
| Repayments of borrowings | (560,900) | (2,700) | (2,100) | (2,674) | (452,340) | ||||||
| Net cash contribution to Bioverativ, Inc. | (302,700) | – | – | – | – | ||||||
| Excess tax benefit from share-based compensation | – | 12,600 | 78,200 | 96,376 | 73,467 | ||||||
| Contingent consideration payments | (3,000) | (38,600) | (13,100) | (20,500) | – | ||||||
| Other | (8,600) | (2,800) | (5,200) | 2,817 | (4,116) | ||||||
| Net cash flows provided by (used in) financing activities | (2,380,000) | (987,800) | 986,400 | (755,873) | (716,528) | ||||||
| Effect of exchange rate changes on cash and cash equivalents | 39,400 | (31,300) | (45,800) | (40,904) | 7,959 | ||||||
| Net increase (decrease) in cash and cash equivalents | (752,700) | 1,018,500 | 103,100 | 602,362 | 31,841 | ||||||
| Cash and cash equivalents, beginning of the year | 2,326,500 | 1,308,000 | 1,204,900 | 602,562 | 570,721 | ||||||
| Cash and cash equivalents, end of the year | 1,573,800 | 2,326,500 | 1,308,000 | 1,204,924 | 602,562 |
| Item | Description | The company |
|---|---|---|
| Net cash flows provided by operating activities | The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. | Biogen Inc.'s net cash flows provided by operating activities increased from 2015 to 2016 and from 2016 to 2017. |