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.
Express Scripts Holding Co., 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 | 4,531,700 | 3,427,600 | 2,499,500 | 2,035,000 | 1,872,700 | ||||||
| Net loss from discontinued operations, net of tax | – | – | – | – | 53,600 | ||||||
| Net income from continuing operations | 4,531,700 | 3,427,600 | 2,499,500 | 2,035,000 | 1,926,300 | ||||||
| Depreciation and amortization | 1,802,000 | 2,154,600 | 2,359,100 | 2,242,900 | 2,447,000 | ||||||
| Deferred income taxes | (1,678,900) | (497,400) | (462,100) | (430,500) | (573,700) | ||||||
| Employee stock-based compensation expense | 99,600 | 107,000 | 117,100 | 111,000 | 164,700 | ||||||
| Other, net | 43,300 | (36,200) | (46,300) | (8,300) | 29,200 | ||||||
| Receivables | 55,900 | (374,000) | (770,300) | (2,042,400) | 1,254,000 | ||||||
| Inventories | (166,700) | 64,100 | 90,100 | (242,100) | (218,900) | ||||||
| Other current and noncurrent assets | (172,500) | (137,500) | 78,300 | (170,000) | 94,200 | ||||||
| Claims and rebates payable | 1,114,900 | (560,800) | 909,500 | 1,720,400 | (672,200) | ||||||
| Accounts payable | (126,800) | 436,400 | 318,300 | 271,700 | 15,900 | ||||||
| Accrued expenses | (241,700) | 404,200 | (142,700) | 948,900 | 450,800 | ||||||
| Other current and noncurrent liabilities | 90,500 | (68,600) | (102,200) | 112,400 | (148,400) | ||||||
| Changes in operating assets and liabilities | 553,600 | (236,200) | 381,000 | 598,900 | 775,400 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities | 819,600 | 1,491,800 | 2,348,800 | 2,514,000 | 2,842,600 | ||||||
| Net cash flows provided by operating activities | 5,351,300 | 4,919,400 | 4,848,300 | 4,549,000 | 4,768,900 | ||||||
| Acquisitions, net of cash acquired | (3,501,100) | – | – | – | – | ||||||
| Capital expenditures for property and equipment and computer software | (267,400) | (330,400) | (295,900) | (436,600) | (423,000) | ||||||
| Net cash proceeds from the sale of business | 85,300 | – | – | – | 356,900 | ||||||
| Other, net | (7,400) | (21,500) | 27,400 | 24,700 | (3,900) | ||||||
| Net cash used in investing activities | (3,690,600) | (351,900) | (268,500) | (411,900) | (70,000) | ||||||
| Treasury stock acquired | (2,938,000) | (4,746,900) | (5,500,000) | (4,493,000) | (4,055,200) | ||||||
| Proceeds from long-term debt, net of discounts | 1,398,900 | 5,986,800 | 5,500,000 | 2,490,100 | – | ||||||
| Repayment of long-term debt | (1,125,000) | (5,932,500) | (3,390,800) | (2,834,300) | (1,931,600) | ||||||
| Commercial paper borrowings, net | 194,800 | – | – | – | – | ||||||
| Net proceeds from employee stock plans | 81,000 | 87,200 | 183,100 | 510,500 | 466,000 | ||||||
| Excess tax benefit relating to employee stock-based compensation | – | 13,000 | 58,200 | 94,000 | 42,700 | ||||||
| Other, net | (44,900) | (85,400) | (67,500) | (57,000) | (16,700) | ||||||
| Net cash used in financing activities | (2,433,200) | (4,677,800) | (3,217,000) | (4,289,700) | (5,494,800) | ||||||
| Net cash used in operating activities, discontinued operations | – | – | – | – | (11,400) | ||||||
| Net cash used in investing activities, discontinued operations | – | – | – | – | (2,100) | ||||||
| Net cash used in discontinued operations | – | – | – | – | (13,500) | ||||||
| Effect of foreign currency translation adjustment | 4,900 | 1,200 | (9,100) | (6,200) | (5,700) | ||||||
| Cash (increase) decrease attributable to discontinued operations | – | – | – | – | 13,400 | ||||||
| Net increase (decrease) in cash and cash equivalents | (767,600) | (109,100) | 1,353,700 | (158,800) | (801,700) | ||||||
| Cash and cash equivalents at beginning of year | 3,077,200 | 3,186,300 | 1,832,600 | 1,991,400 | 2,793,100 | ||||||
| Cash and cash equivalents at end of year | 2,309,600 | 3,077,200 | 3,186,300 | 1,832,600 | 1,991,400 |
| 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. | Express Scripts Holding Co.'s net cash flows provided by operating activities increased from 2015 to 2016 and from 2016 to 2017. |