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 | 477 | 1,400 | 4,423 | 2,284 | 2,576 | ||||||
| Depreciation | 1,046 | 803 | 871 | 918 | 928 | ||||||
| Amortization of intangible assets | 1,975 | 550 | 601 | 630 | 791 | ||||||
| Share-based compensation | 406 | 310 | 292 | 246 | 262 | ||||||
| Impact of currency devaluation | – | 480 | – | – | – | ||||||
| Amortization of inventory step-up | 907 | – | – | – | – | ||||||
| Investing and financing (gains) losses, net | 47 | 86 | (18) | 69 | 4 | ||||||
| Amortization of bridge financing fees | 5 | 165 | – | – | – | ||||||
| Net loss on extinguishment of debt | – | – | – | 18 | – | ||||||
| Gains on sale of businesses | (1,163) | (25) | (2,840) | – | – | ||||||
| Mylan N.V. equity investment adjustment | – | 947 | – | – | – | ||||||
| Gain on sale of Mylan N.V. shares | (45) | – | (207) | – | – | ||||||
| Trade receivables | (207) | (177) | (171) | (195) | (113) | ||||||
| Inventories | 249 | (98) | (257) | (297) | (154) | ||||||
| Prepaid expenses and other assets | 109 | 113 | 57 | 30 | 131 | ||||||
| Trade accounts payable and other liabilities | 615 | (652) | (742) | (225) | (436) | ||||||
| Income taxes | 1,149 | (699) | 957 | 197 | (665) | ||||||
| (Increase) decrease in operating capital | 1,915 | (1,513) | (156) | (490) | (1,237) | ||||||
| Adjustments to reconcile earnings to net cash from operating activities | 5,093 | 1,803 | (1,457) | 1,391 | 748 | ||||||
| Net cash from operating activities | 5,570 | 3,203 | 2,966 | 3,675 | 3,324 | ||||||
| Acquisitions of property and equipment | (1,135) | (1,121) | (1,110) | (1,077) | (1,145) | ||||||
| Acquisitions of businesses and technologies, net of cash acquired | (17,183) | (80) | (235) | (3,317) | (580) | ||||||
| Proceeds from business dispositions | 6,042 | 25 | 230 | 5 | – | ||||||
| Proceeds from the sale of Mylan N.V. shares | 2,704 | – | 2,290 | – | – | ||||||
| Purchases of investment securities | (210) | (2,823) | (4,933) | (1,507) | (10,064) | ||||||
| Proceeds from sales of investment securities | 129 | 3,709 | 4,112 | 5,624 | 7,839 | ||||||
| Other | 35 | 42 | 52 | 70 | 21 | ||||||
| Net cash (used in) from investing activities | (9,618) | (248) | 406 | (202) | (3,929) | ||||||
| Proceeds from issuance (repayments) of short-term debt and other | (1,034) | (1,767) | (1,281) | 1,343 | 2,086 | ||||||
| Proceeds from issuance of long-term debt and debt with maturities over 3 months | 6,742 | 14,934 | 2,485 | – | 9 | ||||||
| Repayments of long-term debt and debt with maturities over 3 months | (8,650) | (12) | (57) | (577) | (303) | ||||||
| Payment of bridge financing fees | – | (170) | – | – | – | ||||||
| Purchase of Alere preferred stock | (710) | – | – | – | – | ||||||
| Acquisition and contingent consideration payments related to business acquisitions | (13) | (25) | (17) | (400) | (495) | ||||||
| Transfer of cash and cash equivalents to AbbVie Inc. | – | – | – | – | (5,901) | ||||||
| Purchases of common shares | (117) | (522) | (2,237) | (2,195) | (1,605) | ||||||
| Proceeds from stock options exercised | 350 | 248 | 314 | 429 | 395 | ||||||
| Dividends paid | (1,849) | (1,539) | (1,443) | (1,342) | (882) | ||||||
| Net cash from (used in) financing activities | (5,281) | 11,147 | (2,236) | (2,742) | (6,696) | ||||||
| Effect of exchange rate changes on cash and cash equivalents | 116 | (483) | (198) | (143) | (26) | ||||||
| Net increase (decrease) in cash and cash equivalents | (9,213) | 13,619 | 938 | 588 | (7,327) | ||||||
| Cash and cash equivalents, beginning of year | 18,620 | 5,001 | 4,063 | 3,475 | 10,802 | ||||||
| Cash and cash equivalents, end of year | 9,407 | 18,620 | 5,001 | 4,063 | 3,475 |
| Item | Description | The company |
|---|---|---|
| Net cash from 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. | Abbott Laboratories's net cash from operating activities increased from 2015 to 2016 and from 2016 to 2017. |