Stock Analysis on Net

Allergan PLC (NYSE:AGN)

This company has been moved to the archive! The financial data has not been updated since May 7, 2020.

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 PLC, consolidated cash flow statement

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income (loss) (5,265,100) (5,086,200) (4,118,900) 14,979,500 3,919,400
Depreciation 204,500 196,300 171,500 155,800 218,300
Amortization 5,856,600 6,552,300 7,197,100 6,475,200 5,777,000
Provision for inventory reserve 160,200 96,400 102,200 181,400 140,900
Share-based compensation 214,300 239,800 293,300 334,500 690,400
Deferred income tax benefit (660,900) (1,255,700) (7,783,100) (1,443,900) (7,380,100)
Pre-tax gain on sale of businesses to Teva (24,511,100)
Non-cash tax effect of gain on sale of businesses to Teva 5,285,200
Goodwill impairments 3,552,800 2,841,100
In-process research and development impairments 436,000 804,600 1,452,300 743,900 511,600
Loss on asset sales and impairments, net 440,200 2,857,600 3,927,700 5,000 334,400
Net income impact of other-than-temporary loss on investment in Teva securities 3,273,500
Charge to settle Teva related matters 387,400
Loss on forward sale of Teva shares 62,900
Gain on sale of Teva securities, net (60,900)
Amortization of inventory step-up 131,700 42,400 1,192,900
Gain on sale of businesses (182,600)
Non-cash extinguishment of debt 200 30,000 (15,700)
Cash discount related to extinguishment of debt (45,600)
Amortization of deferred financing costs 17,500 22,600 27,800 51,000 298,300
Amortization of right of use assets 130,900
Contingent consideration adjustments, including accretion 54,100 (106,500) (133,200) (66,800) 108,800
Excess tax benefit from stock-based compensation (20,400) (76,100)
Other, net (5,500) 29,000 (37,000) (59,900) 66,400
(Increase) decrease in accounts receivable, net (358,800) (37,000) (188,300) (191,000) (1,034,300)
(Increase) decrease in inventories (393,400) (145,700) (144,800) (268,400) (226,200)
(Increase) decrease in prepaid expenses and other current assets (78,100) 4,300 27,900 29,900 70,900
Increase (decrease) in accounts payable and accrued expenses 1,434,400 151,600 95,900 313,500 142,500
Increase (decrease) in income and other taxes payable 1,697,900 (1,191,600) 1,114,100 (326,600) (87,800)
Increase (decrease) in other assets and liabilities (199,100) (73,700) 29,100 (283,900) (137,300)
Changes in assets and liabilities, net of effects of acquisitions 2,102,900 (1,292,100) 933,900 (726,500) (1,272,200)
Reconciliation to net cash provided by operating activities 12,503,800 10,726,300 9,992,300 (13,554,200) 610,600
Net cash provided by operating activities 7,238,700 5,640,100 5,873,400 1,425,300 4,530,000
Additions to property, plant and equipment (375,200) (253,500) (349,900) (331,400) (454,900)
Additions to product rights and other intangibles (58,300) (614,300) (2,000) (154,700)
Sale of businesses to Teva 33,804,200
Additions to investments (3,938,000) (2,471,700) (9,783,800) (15,743,500) (24,300)
Proceeds from sale of investments and other assets 1,569,600 6,259,300 15,153,300 7,771,600 883,000
Payments to settle Teva related matters (466,000)
Proceeds from sales of property, plant and equipment 23,700 30,400 7,100 33,300 140,100
Acquisitions of businesses, net of cash acquired (80,600) (5,290,400) (1,198,900) (37,510,100)
Net cash (used in) provided by investing activities (2,858,800) 3,098,500 (878,000) 24,333,300 (37,120,900)
Proceeds from borrowings of long-term indebtedness, including credit facility 11,900 2,657,000 3,550,000 1,050,000 30,137,700
Payments on debt, including capital lease obligations and credit facility (1,044,900) (8,804,500) (6,413,600) (10,848,700) (5,134,200)
Debt issuance and other financing costs (10,400) (20,600) (310,800)
Proceeds from issuance of preferred shares 4,929,700
Proceeds from issuance of ordinary shares 4,071,100
Payments of contingent consideration and other financing (9,300) (30,900) (511,600) (161,100) (230,100)
Proceeds from stock plans 91,200 102,400 183,400 172,100 230,000
Proceeds from forward sale of Teva securities 465,500
Payments to settle Teva related matters (234,000)
Repurchase of ordinary shares (840,600) (2,775,400) (493,000) (15,076,400) (118,000)
Dividends paid (974,400) (1,049,800) (1,218,200) (278,400) (208,100)
Excess tax benefit from stock-based compensation 20,400 76,100
Net cash provided by (used in) financing activities (2,766,100) (9,680,100) (4,923,600) (25,122,100) 33,443,400
Effect of currency exchange rate changes on cash and cash equivalents 9,100 4,700 21,400 (8,500) (6,500)
Net increase (decrease) in cash and cash equivalents 1,622,900 (936,800) 93,200 628,000 846,000
Cash and cash equivalents at beginning of period 880,400 1,817,200 1,724,000 1,096,000 250,000
Cash and cash equivalents at end of period 2,503,300 880,400 1,817,200 1,724,000 1,096,000

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Net Income (Loss)
The company experienced significant volatility in net income over the five-year period. Starting with a positive net income of $3.9 billion in 2015, it surged to $14.98 billion in 2016, primarily due to a substantial pre-tax gain on the sale of businesses to Teva. However, the following years saw consistent net losses, reaching approximately -$5.26 billion by 2019, influenced by impairments and losses on asset sales.
Depreciation and Amortization
Depreciation remained relatively stable, slightly increasing from $218 million in 2015 to $204.5 million in 2019. Amortization showed a declining trend after peaking at $7.2 billion in 2017, falling to $5.9 billion in 2019, possibly reflecting reduced intangible assets or completed amortization schedules.
Impairments and Asset-Related Losses
Goodwill impairments appeared only in 2018 and 2019, increasing from $2.8 billion to $3.55 billion, indicating challenges in maintaining asset values. Losses related to asset sales and impairments were significant, particularly in 2017 and 2018, suggesting ongoing restructuring or disposals. In-process research and development impairments fluctuated, peaking at $1.45 billion in 2017 before declining to $436 million in 2019.
Teva-Related Transactions and Impacts
The sale of businesses to Teva in 2016 generated a large cash inflow of $33.8 billion and a significant pre-tax gain with associated tax benefits. Subsequent years saw various non-cash and cash charges related to Teva securities and settlements, contributing to financial volatility and impacting net income negatively in 2017 and 2018.
Working Capital Changes
Changes in working capital were inconsistent, with significant increases in accounts payable and accrued expenses by $1.43 billion in 2019, a notable recovery from lower increases in prior years. Accounts receivable and inventories generally decreased, reflecting efforts in cash conversion. Income and other taxes payable fluctuated widely, with a large positive change of $1.7 billion in 2019 compared to a negative $1.19 billion in 2018, impacting cash flow dynamics.
Operating Cash Flow
Net cash provided by operating activities was positive throughout the period, peaking at $7.24 billion in 2019. Despite net income losses in some years, cash flows remained robust, indicating strong operational cash generation and effective non-cash adjustment management.
Investing Activities
Investing cash flows showed variability, with a large cash inflow in 2016 due to the sale of businesses to Teva, contrasted by significant outflows in 2015 and 2019 associated with acquisitions and additions to property and intangibles. Capital expenditures were relatively stable but trended downward in later years, possibly reflecting asset base optimization.
Financing Activities
Financing cash flows fluctuated markedly. The company raised significant debt and equity in 2015 but experienced substantial repayments in subsequent years, including a notable $15.1 billion debt payment in 2016. Share repurchases were aggressive in 2016 but reduced drastically by 2019. Dividends remained relatively consistent but modest relative to cash flows.
Liquidity Position
Cash and cash equivalents increased overall, despite a dip in 2018. The ending cash balance rose from $1.1 billion in 2015 to $2.5 billion in 2019, reflecting a generally positive liquidity trend supported by operating cash flows and financing activities.
Other Observations
Share-based compensation expenses decreased steadily from 2015 to 2019, indicating possible cost management in employee incentives. The amortization of deferred financing costs and right of use assets showed declines and new expenses, respectively, aligning with changes in financing and lease structures.