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.

AmerisourceBergen Corp., consolidated cash flow statement

US$ in thousands

12 months ended:	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
Net income (loss)	1,666,540)	1,544,608)	(3,399,558)	854,135)	1,615,892)	364,484)
Depreciation, including amounts charged to cost of goods sold	390,643)	326,713)	290,744)	321,102)	318,483)	262,420)
Amortization, including amounts charged to interest expense	319,192)	188,073)	117,269)	176,410)	191,626)	169,911)
Provision for credit losses	26,053)	12,101)	11,912)	25,196)	16,660)	8,934)
Provision (benefit) for deferred income taxes	196,184)	334,866)	(1,544,971)	28,537)	(795,524)	319,069)
Share-based compensation expense	93,400)	99,594)	74,411)	58,874)	62,316)	62,206)
LIFO expense (credit)	67,171)	(203,028)	7,422)	(22,544)	67,324)	(157,782)
Impairment of assets, including goodwill	80,882)	31,697)	361,652)	570,000)	59,684)	—)
Gain on sale of businesses	(56,228)	—)	—)	—)	—)	(3,677)
Turkey highly inflationary impact	51,966)	—)	—)	—)	—)	—)
Gain on sale of an equity investment	—)	—)	—)	(13,692)	—)	—)
Gain on remeasurement of equity investment	(4,834)	(64,721)	—)	—)	—)	—)
Impairment of non-customer note receivable	—)	—)	—)	—)	30,000)	—)
Loss on consolidation of equity investments	—)	—)	—)	—)	42,328)	—)
Loss on early retirement of debt	—)	—)	22,175)	—)	23,766)	—)
Other, net	11,781)	29,361)	(3,044)	(23,193)	(19,078)	11,421)
Accounts receivable	(1,659,525)	(930,078)	(1,628,991)	(1,241,890)	(657,770)	(1,277,896)
Inventories	(665,370)	(1,116,344)	(1,621,143)	(167,990)	(4,923)	(431,454)
Income tax receivable	49,307)	266,552)	(482,569)	(2,834)	4,566)	—)
Prepaid expenses and other assets	102,708)	141,057)	28,050)	(3,899)	(61,777)	33,646)
Accounts payable	3,320,725)	2,049,167)	3,300,832)	1,561,048)	859,036)	1,473,389)
Accrued expenses	(457,233)	372,078)	524,021)	239,688)	(537,905)	661,174)
Income taxes payable and other liabilities	(330,079)	(178,120)	(50,115)	(14,925)	196,684)	8,293)
Long-term accrued litigation liability	(500,195)	(236,990)	6,198,943)	—)	—)	—)
Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures	(139,662)	367,322)	6,269,028)	369,198)	(202,089)	467,152)
Adjustments to reconcile net income (loss) to net cash provided by operating activities	1,036,548)	1,121,978)	5,606,598)	1,489,888)	(204,504)	1,139,654)
Net cash provided by operating activities	2,703,088)	2,666,586)	2,207,040)	2,344,023)	1,411,388)	1,504,138)
Capital expenditures	(496,318)	(438,217)	(369,677)	(310,222)	(336,411)	(466,397)
Cost of acquired companies, net of cash acquired	(133,814)	(5,563,040)	—)	(63,951)	(785,299)	(61,648)
Cost of equity investments	(18,491)	(162,620)	(56,080)	—)	—)	(11,347)
Proceeds from sale of property and equipment	6,302)	14,439)	36,364)	1,295)	8,100)	—)
Proceeds from sale of businesses	272,586)	—)	—)	—)	—)	12,094)
Proceeds from sales of investment securities available-for-sale	—)	—)	—)	—)	—)	74,778)
Purchases of investment securities available-for-sale	—)	—)	—)	—)	—)	(48,635)
Other, net	1,298)	7,861)	9,522)	(2,954)	2,496)	3,114)
Net cash used in investing activities	(368,437)	(6,141,577)	(379,871)	(375,832)	(1,111,114)	(498,041)
Senior notes and other loan borrowings	155,189)	3,166,980)	599,480)	506,948)	1,314,430)	—)
Senior notes and other loan repayments	(1,238,954)	(835,313)	(598,452)	(510,863)	(681,001)	(750,000)
Borrowings under revolving and securitization credit facilities	4,832,605)	4,968,815)	116,946)	640,126)	25,129,704)	9,336,400)
Repayments under revolving and securitization credit facilities	(4,671,943)	(5,083,930)	(149,980)	(769,284)	(25,127,438)	(9,335,953)
Payment of premium on early retirement of debt	—)	—)	(21,448)	—)	(22,348)	—)
Purchases of common stock	(483,704)	(82,150)	(420,449)	(674,031)	(639,235)	(329,929)
Exercises of stock options	93,912)	198,750)	159,533)	76,234)	138,456)	102,923)
Cash dividends on common stock	(391,687)	(366,648)	(343,578)	(338,974)	(333,041)	(320,270)
Profarma retail equity offering	—)	—)	66,355)	—)	—)	—)
Tax withholdings related to restricted share vesting	(38,076)	(23,547)	(9,787)	(5,987)	(8,246)	(9,411)
Other, net	(10,122)	9,892)	(2,237)	(10,682)	(14,154)	(6,574)
Net cash provided by (used in) financing activities	(1,752,780)	1,952,849)	(603,617)	(1,086,513)	(242,873)	(1,312,814)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(57,850)	(3,725)	—)	—)	—)	—)
Increase (decrease) in cash, cash equivalents, and restricted cash, including cash classified within assets held for sale	524,021)	(1,525,867)	1,223,552)	881,678)	57,401)	(306,717)
Increase in cash classified within assets held for sale	(610)	(1,751)	—)	—)	—)	—)
Increase (decrease) in cash and cash equivalents	523,411)	(1,527,618)	1,223,552)	881,678)	57,401)	(306,717)
Cash, cash equivalents, and restricted cash at beginning of year	3,070,128)	4,597,746)	3,374,194)	2,492,516)	2,435,115)	2,741,832)
Cash, cash equivalents, and restricted cash at end of year	3,593,539)	3,070,128)	4,597,746)	3,374,194)	2,492,516)	2,435,115)

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

Net income (loss): The net income exhibited significant volatility over the analyzed periods. After a strong increase from approximately $364 million in 2017 to over $1.6 billion in 2018, it declined sharply in 2019 and recorded a substantial loss exceeding $3.3 billion in 2020. This was followed by a recovery to positive figures in 2021 and 2022, around $1.5 billion and $1.7 billion respectively, indicating a rebound in profitability post-2020 downturn.
Depreciation and Amortization: Depreciation expenses showed a generally increasing trend, rising from about $262 million in 2017 to nearly $391 million in 2022. Amortization fluctuated more significantly, peaking at approximately $320 million in 2022 after a low point in 2020. These trends suggest ongoing capital investment and intangible asset amortization increasing over time.
Provision for Credit Losses: This provision rose steadily from $8.9 million in 2017 to $26.1 million in 2022, showing a cautious approach towards potential credit risks consistent with economic conditions.
Provision for Deferred Income Taxes: The provision for deferred income taxes was irregular, with notable large negative and positive swings, including a significant benefit of approximately $1.5 billion in 2020 and a provision exceeding $334 million in 2021. This volatility may indicate tax planning, accounting adjustments, or changes in tax legislation effects.
Share-based Compensation Expense: There was an overall increasing trend in share-based compensation, rising from approximately $62 million in 2017 to about $99.6 million in 2021, before slightly decreasing to $93.4 million in 2022, reflecting changes in employee compensation structures.
LIFO Expense (Credit): The LIFO expense or credit varied between periods without a clear trend, alternating between expense and credit, with notable credits in 2017 and 2021 and expenses in 2018 and 2022, suggesting changes in inventory valuation impacts.
Impairment of Assets: Impairments became material starting in 2018, with a peak of $570 million in 2019 followed by declines, suggesting periodic write-downs of goodwill or other assets, possibly related to acquisitions or changes in asset values.
Working Capital Components: Accounts Receivable and Inventories both showed substantial negative changes indicating increases in asset balances, especially notable in 2020 with -$1.6 billion and -$1.6 billion respectively, implying significant investment or buildup in working capital during that time. Accounts Payable increased sharply in 2020 and 2022, indicating extended payment cycles or increased procurement activity. Accrued Expenses and Income Taxes Payable exhibited notable fluctuations, reflecting timing differences in payments and accruals.
Operating Cash Flow: Net cash provided by operating activities generally increased from $1.5 billion in 2017 to over $2.7 billion in 2022, peaking noticeably in 2019 and 2021, showing strong operational cash generation despite income fluctuations, possibly supported by working capital management.
Investing Activities: Capital expenditures showed a consistent upward trend over the period, increasing from about $466 million in 2017 to nearly $496 million in 2022, reflecting ongoing investments in property and equipment. The cost of acquired companies was highly variable, with a large spike of over $5.5 billion in 2021, indicating a significant acquisition event. Proceeds from sales of businesses and investments were sporadic but notable in certain years such as 2022.
Financing Activities: Financing cash flows were volatile, with net cash used fluctuating between negative amounts in most years to a positive inflow in 2021 of approximately $1.95 billion. Borrowings and repayments under credit facilities generally tracked each other closely, indicating active management of short-term debt. Repurchases of common stock varied, with a peak in 2019 and a sharp decline afterward. Dividends steadily increased over the years, reflecting a commitment to returning capital to shareholders.
Cash and Cash Equivalents: The cash balance at year-end increased from about $2.4 billion in 2017 to a peak of $4.6 billion in 2020, followed by a decrease to $3.1 billion in 2021 and a subsequent recovery to approximately $3.6 billion in 2022. The increase in cash during 2019 and 2020 aligns with strong operating cash flows and financing activities.
Overall Insights: Financial data reveal a period marked by volatility in profitability and tax provisions, accompanied by substantial investments and acquisition activities, especially in 2021. Operational cash flow remained robust even during periods of net loss. The company showed a strategic focus on capital expenditures and acquisitions while maintaining shareholder returns through dividends and share repurchases, albeit with some fluctuation in repurchase activity. Working capital components suggest fluctuating liquidity requirements and procurement strategies. The large impairment charges and deferred tax benefits in 2020 coincide with the net loss period, indicating financial challenges that were mitigated in subsequent years.

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AmerisourceBergen Corp. (NYSE:ABC)

Cash Flow Statement