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.

Allergan Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Net earnings	1,528,800)	988,700)	1,102,500)	938,100)	4,900)
Depreciation and amortization	248,100)	254,600)	256,600)	253,400)	257,100)
Amortization of original issue discount and debt issuance costs	2,800)	2,600)	1,900)	9,700)	28,400)
Amortization of net realized gain on interest rate swap	(15,000)	(14,400)	(7,700)	(1,300)	(1,300)
Deferred income tax benefit	(79,800)	(192,200)	(88,300)	(68,900)	(249,100)
Loss on disposal and impairment of assets	29,800)	5,800)	5,700)	—)	17,900)
Unrealized (gain) loss on derivative instruments	(37,200)	(10,400)	15,300)	(11,100)	7,600)
Expense of share-based compensation plans	159,700)	114,400)	109,100)	86,300)	73,900)
Loss on sale of discontinued operations	—)	408,200)	—)	—)	—)
Legal settlement	—)	—)	—)	—)	15,200)
Impairment of intangible assets and related costs	—)	11,400)	22,300)	20,400)	369,100)
(Income) expense from changes in fair value of contingent consideration	(15,100)	70,700)	5,400)	11,900)	7,900)
Provision for losses on trade receivables in Venezuela	37,300)	—)	—)	—)	—)
Restructuring charges	246,400)	5,500)	5,700)	4,600)	300)
Loss on investments, net	3,100)	3,700)	—)	1,300)	—)
Pension and other post-retirement benefit plans settlements and curtailments	12,100)	—)	—)	—)	—)
Non-cash items included in net earnings	592,200)	659,900)	326,000)	306,300)	527,000)
Trade receivables	(115,700)	(139,600)	(34,300)	(105,600)	(71,400)
Inventories	(43,800)	(26,900)	(7,300)	(24,000)	(5,600)
Other current assets	(23,300)	(800)	(16,000)	(33,100)	7,300)
Other non-current assets	(29,700)	(15,500)	44,100)	(13,400)	(18,600)
Accounts payable	1,900)	37,400)	32,700)	(19,300)	8,600)
Accrued expenses	115,900)	110,200)	73,100)	39,100)	34,400)
Income taxes	(124,000)	64,900)	52,400)	(19,800)	(17,600)
Other liabilities	25,500)	17,100)	26,700)	13,600)	(5,100)
Changes in operating assets and liabilities	(193,200)	46,800)	171,400)	(162,500)	(68,000)
Net cash provided by operating activities	1,927,800)	1,695,400)	1,599,900)	1,081,900)	463,900)
Purchases of short-term investments	(1,269,800)	(1,025,600)	(865,200)	(571,100)	(824,100)
Purchases of equity investments	(20,300)	—)	—)	—)	—)
Acquisitions, net of cash acquired	(67,500)	(892,100)	(349,200)	(101,400)	(69,800)
Additions to property, plant and equipment	(243,900)	(171,900)	(143,300)	(118,600)	(102,800)
Additions to capitalized software	(19,000)	(11,800)	(13,900)	(11,200)	(13,300)
Additions to intangible assets	(15,000)	(300)	(4,100)	(300)	(40,900)
Contractual purchase price adjustment to prior acquisition	—)	—)	—)	—)	(1,700)
Proceeds from maturities of short-term investments	1,815,900)	683,200)	784,600)	1,140,300)	75,000)
Proceeds from sale of business	1,800)	42,700)	—)	—)	—)
Proceeds from sale of equity investments	—)	—)	—)	1,900)	—)
Proceeds from sale of property, plant and equipment	500)	500)	1,800)	1,200)	400)
Net cash (used in) provided by investing activities	182,700)	(1,375,300)	(589,300)	340,800)	(977,200)
Repayments of convertible borrowings	—)	—)	—)	(808,900)	—)
Dividends to stockholders	(59,600)	(59,400)	(60,400)	(61,100)	(60,600)
Payments to acquire treasury stock	(839,200)	(650,700)	(909,000)	(461,700)	(286,000)
Purchase of noncontrolling interest in a subsidiary	—)	(18,000)	—)	—)	—)
Payments of contingent consideration	(10,200)	(61,200)	(5,100)	(3,000)	—)
Net borrowings (repayments) of notes payable	16,500)	6,800)	(35,100)	30,700)	6,600)
Debt issuance costs	—)	(4,800)	—)	—)	(6,100)
Proceeds from issuance of senior notes, net of discount	—)	598,500)	—)	—)	648,000)
Sale of stock to employees	521,000)	179,300)	246,400)	264,000)	234,000)
Excess tax benefits from share-based compensation	167,500)	37,700)	45,700)	37,700)	27,100)
Net cash provided by (used in) financing activities	(204,000)	28,200)	(717,500)	(1,002,300)	563,000)
Effect of exchange rate changes on cash and equivalents	(41,200)	(4,000)	2,600)	(5,500)	(5,600)
Net increase (decrease) in cash and equivalents	1,865,300)	344,300)	295,700)	414,900)	44,100)
Cash and equivalents at beginning of period	3,046,100)	2,701,800)	2,406,100)	1,991,200)	1,947,100)
Cash and equivalents at end of period	4,911,400)	3,046,100)	2,701,800)	2,406,100)	1,991,200)

Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).

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Cash flow statement item	Description	The company
Net cash provided by 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.	Allergan Inc. net cash provided by operating activities increased from 2012 to 2013 and from 2013 to 2014.
Net cash (used in) provided by 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.	Allergan Inc. net cash (used in) provided by investing activities decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.
Net cash provided by (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.	Allergan Inc. net cash provided by (used in) financing activities increased from 2012 to 2013 but then slightly decreased from 2013 to 2014.

Allergan Inc. (NYSE:AGN.)

Cash Flow Statement