Allergan PLC (AGN)

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.

Allergan PLC, Consolidated Statement of Cash Flows

USD $ in thousands

	12 months ended	Dec 31, 2017		Dec 31, 2016		Dec 31, 2015		Dec 31, 2014		Dec 31, 2013
	Net income (loss)
	Depreciation
	Amortization
	Provision for inventory reserve
	Share-based compensation
	Deferred income tax benefit
	Pre-tax gain on sale of businesses to Teva
	Non-cash tax effect of gain on sale of businesses to Teva
	In-process research and development impairments
	Goodwill impairment
	Loss on asset sales and impairments, net
	Net income impact of other-than-temporary loss on investment in Teva securities
	Charge to settle Teva related matters
	Loss on forward sale of Teva shares
	Amortization of inventory step-up
	Non-cash extinguishment of debt
	Amortization of deferred financing costs
	Contingent consideration adjustments, including accretion
	Excess tax benefit from stock-based compensation
	Impact of assets held for sale
	Other, net
	(Increase) decrease in accounts receivable, net
	(Increase) decrease in inventories
	(Increase) decrease in prepaid expenses and other current assets
	Increase (decrease) in accounts payable and accrued expenses
	Increase (decrease) in income and other taxes payable
	Increase (decrease) in other assets and liabilities
	Changes in assets and liabilities, net of effects of acquisitions
	Reconciliation to net cash provided by operating activities
	Net cash provided by operating activities
	Additions to property, plant and equipment
	Additions to product rights and other intangibles
	Sale of businesses to Teva
	Additions to investments
	Proceeds from sale of investments and other assets
	Proceeds from sales of property, plant and equipment
	Acquisitions of businesses, net of cash acquired
	Other investing activities, net
	Net cash (used in) provided by investing activities
	Proceeds from borrowings of long-term indebtedness, including credit facility
	Debt issuance and other financing costs
	Payments on debt, including capital lease obligations and credit facility
	Proceeds from issuance of preferred shares
	Proceeds from issuance of ordinary shares
	Proceeds from stock plans
	Other financing, including contingent consideration
	Repurchase of ordinary shares
	Dividends paid
	Excess tax benefit from stock-based compensation
	Net cash provided by (used in) financing activities
	Effect of currency exchange rate changes on cash and cash equivalents
	Movement in cash held for sale
	Net increase (decrease) in cash and cash equivalents
	Cash and cash equivalents at beginning of period
	Cash and cash equivalents at end of period

Based on: 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26), 10-K (filing date: 2015-02-18), 10-K (filing date: 2014-02-25).

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 PLC’s net cash provided by operating activities declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.
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 PLC’s net cash (used in) provided by investing activities increased from 2015 to 2016 but then slightly declined from 2016 to 2017.
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 PLC’s net cash provided by (used in) financing activities declined from 2015 to 2016 but then slightly increased from 2016 to 2017.

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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