Name: Celgene Corp. (NASDAQ:CELG) | Cash Flow Statement
Creator: Stock Analysis on Net

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.

Download chart

Celgene Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Net income	4,046)	2,940)	1,999)	1,602)	2,000)
Depreciation	160)	134)	121)	115)	104)
Amortization	475)	337)	384)	294)	269)
Impairment charges	31)	1,679)	489)	49)	133)
Deferred income taxes	32)	(1,330)	(344)	(33)	(272)
Change in value of contingent consideration and success payments	19)	(1,350)	21)	(8)	49)
Gain on sale of business	—)	—)	(38)	—)	—)
Net (gain) loss on sales of debt securities available-for-sale and equity investments	18)	(61)	(7)	(84)	5)
Fair value adjustments on equity investments	(317)	—)	—)	—)	—)
Share-based compensation expense	921)	644)	606)	577)	448)
Share-based employee benefit plan expense	33)	34)	40)	35)	41)
Derivative instruments	3)	72)	169)	(31)	(72)
Other, net	(15)	(24)	(10)	19)	(14)
Accounts receivable	(178)	(236)	(222)	(305)	(166)
Inventory	82)	(42)	(55)	(51)	(57)
Other operating assets	(55)	(73)	94)	(326)	53)
Accounts payable and other operating liabilities	290)	273)	619)	533)	252)
Income tax payable	(393)	2,229)	112)	61)	39)
Payment of contingent consideration	(22)	—)	(9)	—)	(14)
Deferred revenue	41)	20)	7)	37)	8)
Change in current assets and liabilities, excluding the effect of acquisitions	(235)	2,171)	546)	(50)	115)
Adjustments to reconcile net income to net cash provided by operating activities	1,125)	2,306)	1,977)	882)	806)
Net cash provided by operating activities	5,171)	5,246)	3,976)	2,484)	2,806)
Proceeds from sales of debt securities available-for-sale	3,388)	5,872)	633)	3,800)	2,176)
Purchases of debt securities available-for-sale	(675)	(8,163)	(1,281)	(1,889)	(2,661)
Capital expenditures	(330)	(279)	(236)	(286)	(150)
Proceeds from sales of equity investment securities	96)	116)	15)	92)	—)
Purchases of equity investment securities	(249)	(410)	(132)	(273)	(67)
Payments for acquisition of businesses, net of cash acquired	(8,648)	—)	—)	(7,695)	(710)
Other investing activities	—)	(27)	(1)	(7)	(25)
Net cash used in investing activities	(6,418)	(2,891)	(1,002)	(6,259)	(1,438)
Payment for treasury shares	(6,096)	(3,833)	(2,160)	(3,257)	(2,975)
Proceeds from short-term borrowing	5,709)	—)	100)	6,112)	2,567)
Principal repayments on short-term borrowing	(5,709)	—)	(100)	(6,213)	(3,012)
Proceeds from the issuance of long-term debt	4,452)	3,468)	—)	7,913)	2,471)
Repayments of long-term debt	—)	(1,904)	—)	(514)	—)
Net proceeds (payments) from common equity put options	—)	—)	8)	(9)	10)
Payment of contingent consideration	(40)	—)	(41)	—)	(26)
Net proceeds from share-based compensation arrangements	144)	685)	359)	252)	297)
Excess tax benefit from share-based compensation arrangements	—)	—)	189)	301)	251)
Net cash provided by (used in) financing activities	(1,540)	(1,584)	(1,646)	4,585)	(417)
Effect of currency rate changes on cash and cash equivalents	8)	72)	(39)	(51)	(64)
Net increase (decrease) in cash and cash equivalents	(2,779)	843)	1,290)	759)	887)
Cash and cash equivalents at beginning of period	7,013)	6,170)	4,880)	4,122)	3,234)
Cash and cash equivalents at end of period	4,234)	7,013)	6,170)	4,880)	4,122)

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

The financial trajectory between 2014 and 2018 is characterized by strong operating cash flow generation, aggressive strategic acquisitions, and substantial capital returns to shareholders through share repurchases.

Operating Activities: Net cash provided by operating activities exhibited a general upward trend, growing from 2,806 million US dollars in 2014 to a peak of 5,246 million US dollars in 2017, before stabilizing at 5,171 million US dollars in 2018. While net income grew from 2,000 million US dollars to 4,046 million US dollars over the period, significant non-cash adjustments impacted the reconciliation. Notably, 2017 saw a substantial impairment charge of 1,679 million US dollars and a large increase in income tax payable of 2,229 million US dollars, which significantly influenced the cash flow profile for that year.
Investing Activities: Investing activities were dominated by large-scale business acquisitions and the management of marketable securities. Major cash outflows for the acquisition of businesses occurred in 2015 (7,695 million US dollars) and 2018 (8,648 million US dollars). Capital expenditures showed a consistent increase, rising from 150 million US dollars in 2014 to 330 million US dollars in 2018. The company also maintained an active portfolio of debt securities available-for-sale, with significant volatility in purchases and sales, most notably in 2017 where 8,163 million US dollars were used for purchases against 5,872 million US dollars in proceeds.
Financing Activities: Financing strategy focused heavily on share repurchases and the utilization of debt markets to maintain liquidity. Payments for treasury shares increased steadily, peaking at 6,096 million US dollars in 2018. To fund these activities and acquisitions, the company leveraged both short-term and long-term debt. Long-term debt issuance peaked in 2015 at 7,913 million US dollars. Short-term borrowing was used tactically, with high volumes of both proceeds and repayments in 2015 and 2018, suggesting a revolving credit strategy to manage timing differences between cash inflows and large outflows.

The overall cash position grew from 4,122 million US dollars at the end of 2014 to 7,013 million US dollars by the end of 2017. However, the combined impact of a major acquisition and accelerated share repurchases in 2018 resulted in a net decrease in cash and cash equivalents, ending the period at 4,234 million US dollars.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.

How can I help you?