Abbott Laboratories (ABT)

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.

Abbott Laboratories, Consolidated Statement of Cash Flows

USD $ in millions

	12 months ended	Dec 31, 2017		Dec 31, 2016		Dec 31, 2015		Dec 31, 2014		Dec 31, 2013
	Net earnings
	Depreciation
	Amortization of intangible assets
	Share-based compensation
	Impact of currency devaluation
	Amortization of inventory step-up
	Investing and financing (gains) losses, net
	Amortization of bridge financing fees
	Net loss on extinguishment of debt
	Gains on sale of businesses
	Mylan N.V. equity investment adjustment
	Gain on sale of Mylan N.V. shares
	Trade receivables
	Inventories
	Prepaid expenses and other assets
	Trade accounts payable and other liabilities
	Income taxes
	(Increase) decrease in operating capital
	Adjustments to reconcile earnings to net cash from operating activities
	Net cash from operating activities
	Acquisitions of property and equipment
	Acquisitions of businesses and technologies, net of cash acquired
	Proceeds from business dispositions
	Proceeds from the sale of Mylan N.V. shares
	Purchases of investment securities
	Proceeds from sales of investment securities
	Other
	Net cash (used in) from investing activities
	Proceeds from issuance (repayments) of short-term debt and other
	Proceeds from issuance of long-term debt and debt with maturities over 3 months
	Repayments of long-term debt and debt with maturities over 3 months
	Payment of bridge financing fees
	Purchase of Alere preferred stock
	Acquisition and contingent consideration payments related to business acquisitions
	Transfer of cash and cash equivalents to AbbVie Inc.
	Purchases of common shares
	Proceeds from stock options exercised
	Dividends paid
	Net cash from (used in) financing activities
	Effect of exchange rate changes on cash and cash equivalents
	Net increase (decrease) in cash and cash equivalents
	Cash and cash equivalents, beginning of year
	Cash and cash equivalents, end of year

Based on: 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19), 10-K (filing date: 2015-02-27), 10-K (filing date: 2014-02-21).

Item	Description	The company
Net cash from operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	Abbott Laboratories’s net cash from operating activities increased from 2015 to 2016 and from 2016 to 2017.
Net cash (used in) from investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	Abbott Laboratories’s net cash (used in) from investing activities declined from 2015 to 2016 and from 2016 to 2017.
Net cash from (used in) financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	Abbott Laboratories’s net cash from (used in) financing activities increased from 2015 to 2016 but then declined significantly from 2016 to 2017.

	Abbott Laboratories	Other companies (not purchased previously)
Financial Statements
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Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
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	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality