Name: Allergan PLC (NYSE:AGN) | Cash Flow Statement
Creator: Stock Analysis on Net

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.

Download chart

Allergan PLC, consolidated cash flow statement

US$ in thousands

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).

A significant divergence is observed between reported net income and net cash provided by operating activities. While net income shifted from a peak of US$ 14.98 billion in 2016 to consistent losses exceeding US$ 4 billion annually from 2017 through 2019, operating cash flow remained positive and grew to US$ 7.24 billion by 2019. This discrepancy is primarily attributable to substantial non-cash charges, specifically amortization and impairment losses, which shielded cash reserves from the impact of accounting losses.

Operating Cash Flow Drivers: Cash generation from operations is heavily supported by non-cash expenses. Amortization remained a consistent add-back, ranging between US$ 5.86 billion and US$ 7.20 billion annually. Beginning in 2018, goodwill impairments became a significant factor, totaling US$ 2.84 billion in 2018 and US$ 3.55 billion in 2019. Additionally, changes in assets and liabilities showed a volatile trend, shifting from a cash outflow of US$ 1.27 billion in 2015 to a cash inflow of US$ 2.10 billion in 2019, largely driven by increases in accounts payable and accrued expenses.
Investing Activity and Strategic Divestitures: The investing profile is characterized by a period of aggressive expansion followed by strategic divestment. A major capital outlay occurred in 2015 with business acquisitions totaling US$ 37.51 billion. This was largely offset in 2016 by the sale of businesses to Teva, which generated US$ 33.80 billion in cash. Subsequent years show a focus on managing investments, with proceeds from the sale of investments peaking at US$ 15.15 billion in 2017, while additions to property, plant, and equipment remained relatively stable between US$ 250 million and US$ 450 million.
Financing and Capital Structure: Financing activities reflect a cycle of heavy borrowing to fund growth followed by aggressive debt reduction and shareholder returns. In 2015, the company secured US$ 30.14 billion through long-term indebtedness. Following the Teva divestiture, capital was redeployed toward shareholders, most notably through a US$ 15.08 billion repurchase of ordinary shares in 2016. Debt repayment remained a priority, with annual payments on debt ranging from US$ 6.41 billion to US$ 10.85 billion between 2016 and 2018, before decreasing sharply to US$ 1.04 billion in 2019.
Liquidity Position: The net increase or decrease in cash has been subject to the timing of large-scale corporate transactions. Despite the volatility in investing and financing flows, the cash and cash equivalents balance grew from US$ 250 million at the start of 2015 to US$ 2.50 billion by the end of 2019, indicating a strengthened liquidity position over the five-year period.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.

How can I help you?