Name: Kraft Foods Group Inc. (NASDAQ:KRFT) | 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

Kraft Foods Group Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 27, 2014	Dec 28, 2013	Dec 29, 2012
Net earnings	1,043)	2,715)	1,642)
Depreciation and amortization	385)	393)	428)
Stock-based compensation expense	95)	65)	54)
Deferred income tax provision	(361)	708)	470)
Asset impairments	—)	28)	28)
Market-based impacts to postemployment benefit plans	1,341)	(1,561)	223)
Other non-cash expense, net	67)	138)	159)
Receivables, net	(22)	35)	220)
Inventories	(53)	235)	21)
Accounts payable	45)	45)	(241)
Other current assets	(41)	(9)	(61)
Other current liabilities	(164)	(217)	205)
Change in assets and liabilities	(235)	89)	144)
Change in pension and postretirement assets and liabilities, net	(315)	(532)	(113)
Adjustments to reconcile net earnings to operating cash flows	977)	(672)	1,393)
Net cash provided by operating activities	2,020)	2,043)	3,035)
Capital expenditures	(535)	(557)	(440)
Proceeds from sale of property, plant and equipment	2)	131)	18)
Other investing activities	(2)	—)	—)
Net cash used in investing activities	(535)	(426)	(422)
Dividends paid	(1,266)	(1,207)	—)
Repurchase of common stock under share repurchase program	(740)	—)	—)
Proceeds from stock option exercises	115)	96)	14)
Long-term debt proceeds	—)	—)	5,963)
Net transfers to Mondelēz International	—)	—)	(7,210)
Other financing activities	25)	(60)	(125)
Net cash used in financing activities	(1,866)	(1,171)	(1,358)
Effect of exchange rate changes on cash and cash equivalents	(12)	(15)	—)
Cash and cash equivalents, increase (decrease)	(393)	431)	1,255)
Cash and cash equivalents, balance at beginning of period	1,686)	1,255)	—)
Cash and cash equivalents, balance at end of period	1,293)	1,686)	1,255)

Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).

The cash flow profile for the period between 2012 and 2014 is characterized by a steady decline in operating cash generation and a significant shift in financing activities, transitioning from corporate restructuring toward shareholder returns.

Operating Cash Flow Trends: Net cash provided by operating activities decreased from 3,035 million USD in 2012 to 2,020 million USD in 2014. This downward trend occurred despite a peak in net earnings in 2013 of 2,715 million USD. The volatility in operating cash flow is largely attributable to non-cash adjustments, specifically market-based impacts to postemployment benefit plans, which fluctuated from 223 million USD in 2012 to -1,561 million USD in 2013, before rebounding to 1,341 million USD in 2014. Furthermore, the change in assets and liabilities shifted from a positive contribution in 2012 and 2013 to a cash outflow of 235 million USD in 2014, indicating a less favorable working capital position.
Investing Activity Analysis: Investing activities remained consistently negative, with net cash used increasing from 422 million USD in 2012 to 535 million USD in 2014. Capital expenditures showed a steady upward trend, rising from 440 million USD to a peak of 557 million USD in 2013, and remaining high at 535 million USD in 2014. The reliance on internal cash for these expenditures is evident, as proceeds from the sale of property, plant, and equipment were negligible in 2012 and 2014, peaking briefly at 131 million USD in 2013.
Financing Activity and Capital Structure: Financing activities reflect a major structural event in 2012, marked by 5,963 million USD in long-term debt proceeds and a corresponding 7,210 million USD net transfer to Mondelēz International. In subsequent years, the focus shifted toward capital distribution. Dividends paid remained consistent, totaling 1,207 million USD in 2013 and 1,266 million USD in 2014. A notable increase in shareholder returns is observed in 2014 with the introduction of 740 million USD in common stock repurchases, contributing to the highest annual net cash outflow for financing activities at 1,866 million USD.
Liquidity and Cash Position: The balance of cash and cash equivalents experienced volatility, ending 2012 at 1,255 million USD, peaking in 2013 at 1,686 million USD, and declining to 1,293 million USD by the end of 2014. The decrease in the final year was driven by the combination of reduced net earnings, increased share repurchases, and a negative impact from changes in assets and liabilities.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?