Allergan PLC (NYSE:AGN)

Cash Flow Statement

Beginner level

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 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

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 (filing date: 2020-02-18), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

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 PLC’s net cash provided by operating activities decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 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 2017 to 2018 but then decreased significantly from 2018 to 2019.
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 decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.