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.

Biogen Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income	1,727,600)	4,060,500)	5,888,500)	4,474,000)	2,670,100)
Depreciation and amortization	487,700)	457,200)	464,700)	650,500)	1,081,000)
Impairment of intangible assets	629,300)	209,700)	215,900)	366,100)	—)
Excess and obsolescence charges related to inventory	167,600)	26,600)	52,200)	—)	—)
Acquired in-process research and development	18,000)	75,000)	—)	112,500)	120,000)
Share-based compensation	238,600)	198,300)	182,300)	157,500)	128,000)
Contingent consideration	(50,700)	(86,300)	(63,700)	(12,300)	62,700)
(Gain) loss on divestiture of Hillerød, Denmark manufacturing operations	—)	(92,500)	55,300)	—)	—)
Deferred income taxes	(426,800)	149,000)	67,100)	108,300)	91,700)
(Gain) loss on strategic investments	826,800)	(681,800)	(147,300)	(124,800)	—)
(Gain) loss on equity method investment	(34,900)	(3,300)	77,400)	—)	—)
Other	202,200)	104,600)	86,900)	55,700)	162,100)
Accounts receivable	324,800)	2,800)	68,800)	(205,200)	(435,600)
Due from anti-CD20 therapeutic programs	1,200)	176,700)	(63,300)	5,700)	(232,000)
Inventory	(462,400)	(316,300)	(19,200)	(52,100)	(94,500)
Accrued expense and other current liabilities	(95,400)	154,200)	240,200)	465,500)	(227,400)
Income tax assets and liabilities	230,800)	(67,500)	16,100)	321,700)	1,303,900)
Other changes in operating assets and liabilities, net	(144,500)	(137,100)	(43,300)	(135,400)	(79,000)
Changes in operating assets and liabilities, net	(145,500)	(187,200)	199,300)	400,200)	235,400)
Adjustments to reconcile net income to net cash flows from operating activities	1,912,300)	169,300)	1,190,100)	1,713,700)	1,880,900)
Net cash flow provided by operating activities	3,639,900)	4,229,800)	7,078,600)	6,187,700)	4,551,000)
Purchases of property, plant and equipment	(258,100)	(424,800)	(514,500)	(770,600)	(867,400)
Proceeds from sales and maturities of marketable securities	3,405,400)	7,299,400)	6,007,000)	9,173,700)	5,565,900)
Purchases of marketable securities	(3,808,700)	(6,397,700)	(5,252,600)	(7,694,800)	(5,355,200)
Contingent consideration paid related to Fumapharm AG acquisition	—)	—)	(300,000)	(1,500,000)	(1,200,000)
Acquisition of Nightstar Therapeutics plc, net of cash acquired	—)	—)	(744,400)	—)	—)
Purchase of Ionis Pharmaceuticals, Inc. stock	—)	—)	—)	(462,900)	—)
Purchase of Sangamo Therapeutics, Inc. stock	—)	(141,800)	—)	—)	—)
Purchase of Denali Therapeutics Inc. stock	—)	(423,700)	—)	—)	—)
Purchase of Sage Therapeutics, Inc. stock	—)	(441,000)	—)	—)	—)
Proceeds from divestiture of Hillerød, Denmark manufacturing operations	28,100)	—)	923,700)	—)	—)
Acquired in-process research and development	(18,000)	(75,000)	—)	(112,500)	(120,000)
Acquisitions of intangible assets	(18,800)	(52,000)	(155,000)	(3,000)	(975,400)
Investment in Samsung Bioepis	—)	—)	—)	(676,600)	—)
Proceeds from sales of strategic investments	93,500)	74,900)	479,300)	—)	—)
Other	12,900)	(26,900)	27,000)	400)	(11,000)
Net cash flow (used in) provided by investing activities	(563,700)	(608,600)	470,500)	(2,046,300)	(2,963,100)
Purchase of treasury stock	(1,800,000)	(6,679,100)	(5,868,300)	(4,352,600)	(1,365,400)
Payments related to issuance of stock for share-based compensation arrangements, net	(700)	(4,600)	—)	—)	—)
Repayments of borrowings and premiums paid on debt exchange	(170,000)	—)	—)	—)	—)
Proceeds from borrowings	—)	2,967,400)	—)	—)	—)
Repayments of borrowings	—)	(1,500,000)	—)	(3,200)	(560,900)
Net contribution (distribution) to noncontrolling interests	(94,400)	(71,000)	4,300)	(36,400)	(134,100)
Net cash contribution to Bioverativ, Inc.	—)	—)	—)	—)	(302,700)
Contingent consideration payments	—)	—)	—)	(58,200)	(3,000)
Other	(21,100)	14,600)	3,600)	(21,600)	(13,900)
Net cash flow used in financing activities	(2,086,200)	(5,272,700)	(5,860,400)	(4,472,000)	(2,380,000)
Effect of exchange rate changes on cash and cash equivalents	(59,800)	69,000)	400)	(18,600)	39,400)
Net increase (decrease) in cash and cash equivalents	930,200)	(1,582,500)	1,689,100)	(349,200)	(752,700)
Cash and cash equivalents, beginning of the year	1,331,200)	2,913,700)	1,224,600)	1,573,800)	2,326,500)
Cash and cash equivalents, end of the year	2,261,400)	1,331,200)	2,913,700)	1,224,600)	1,573,800)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Net Income: The net income showed an overall declining trend from 2017 to 2021. It peaked in 2019 at 5,888,500 thousand US dollars, followed by a significant decrease to 1,727,600 thousand US dollars in 2021, indicating a reduction in profitability over the period.
Depreciation and Amortization: Depreciation and amortization expenses decreased substantially from 1,081,000 thousand US dollars in 2017 to 457,200 thousand in 2020 but slightly increased to 487,700 thousand in 2021, suggesting a reduction in asset base or changes in capital expenditures before a slight rebound.
Impairment of Intangible Assets: This expense showed fluctuations, starting at 366,100 thousand US dollars in 2018, dropping in 2019 and 2020, then rising sharply to 629,300 thousand in 2021, implying episodic write-downs affecting asset valuations.
Inventory-Related Charges: Excess and obsolescence charges related to inventory increased over the years, reaching 167,600 thousand US dollars in 2021 from lower levels in prior years, indicating challenges in inventory management or demand forecasting.
Share-based Compensation: Share-based compensation steadily rose from 128,000 thousand US dollars in 2017 to 238,600 thousand in 2021, reflecting increasing equity-based employee compensation.
Cash Flow from Operating Activities: Net cash provided by operating activities increased notably from 4,551,000 thousand US dollars in 2017 to a peak of 7,078,600 thousand in 2019, followed by a decline to 3,639,900 thousand in 2021, aligning with the reduction in net income and suggesting tightening operational cash generation.
Capital Expenditures: Purchases of property, plant, and equipment declined continuously, decreasing from 867,400 thousand in 2017 to 258,100 thousand US dollars in 2021, indicating reduced investment in fixed assets over time.
Investing Activities: Net cash flow from investing activities improved to positive territory in 2019 but reverted to negative in subsequent years, reflecting variable investment and divestment activities, including proceeds from divestitures and acquisitions impacting cash flows.
Financing Activities: Net cash used in financing activities was consistently negative, with significant purchases of treasury stock each year, particularly high in 2019 and 2020, indicating substantial share repurchases. Borrowings and repayments varied, including proceeds from borrowings in 2020 but large repayments in other years, signaling active debt management.
Cash and Cash Equivalents: Cash balances decreased overall from 2,326,500 thousand US dollars at the start of 2017 to 2,261,400 thousand at the end of 2021, with fluctuations throughout, including peaks in 2019 and dips in 2020, consistent with operating and investing cash flow trends.
Other Observations: Various gains and losses on strategic investments and equity method investments negatively affected results in some years but reversed in 2021 with realizations of gains. Deferred income taxes showed a large negative adjustment in 2021, possibly impacting the effective tax rate and net income.

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Biogen Inc. (NASDAQ:BIIB)

Cash Flow Statement