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.

Becton, Dickinson & Co., consolidated cash flow statement

US$ in millions

12 months ended:	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016
Net income	2,092)	874)	1,233)	311)	1,100)	976)
Depreciation and amortization	2,273)	2,154)	2,253)	1,978)	1,088)	1,114)
Share-based compensation	237)	244)	261)	322)	174)	196)
Deferred income taxes	(304)	(302)	(381)	(240)	(236)	(426)
Trade receivables, net	(95)	(48)	(51)	(170)	(93)	(128)
Inventories	(104)	(125)	(149)	246)	(46)	69)
Prepaid expenses and other	(186)	81)	299)	(46)	(366)	90)
Accounts payable, income taxes and other liabilities	687)	205)	(470)	867)	134)	368)
Change in operating assets and liabilities	302)	113)	(371)	897)	(371)	399)
Pension obligation	71)	95)	(123)	(263)	84)	(32)
Excess tax benefits from payments under share-based compensation plans	15)	52)	55)	78)	77)	—)
Lease contract modification-related charge	—)	—)	—)	—)	748)	—)
Gain on sale of Vyaire interest	—)	—)	—)	(303)	—)	—)
Gain on sale of business	—)	—)	(336)	—)	—)	—)
Product liability-related charges	361)	378)	914)	—)	—)	—)
Other, net	(400)	(69)	(175)	85)	(114)	332)
Adjustments to net income to derive net cash provided by operating activities	2,555)	2,665)	2,097)	2,554)	1,450)	1,583)
Net cash provided by operating activities	4,647)	3,539)	3,330)	2,865)	2,550)	2,559)
Capital expenditures	(1,231)	(810)	(957)	(895)	(727)	(693)
Acquisitions, net of cash acquired	(508)	(164)	—)	(15,281)	(174)	—)
Proceeds from divestitures, net	—)	—)	477)	534)	165)	158)
Other, net	(141)	(258)	(261)	(187)	(147)	(134)
Net cash used for investing activities	(1,880)	(1,232)	(741)	(15,829)	(883)	(669)
Change in credit facility borrowings	—)	(485)	485)	—)	(200)	(500)
Proceeds from long-term debt and term loans	4,869)	3,389)	2,224)	5,086)	11,462)	—)
Payments of debt and term loans	(5,112)	(4,664)	(4,744)	(3,996)	(3,980)	(752)
Proceeds from issuance of equity securities	—)	2,917)	—)	—)	4,827)	—)
Repurchase of common stock	(1,750)	—)	—)	—)	(220)	—)
Excess tax benefit from payments under share-based compensation plans	—)	—)	—)	—)	—)	86)
Dividends paid	(1,048)	(1,026)	(984)	(927)	(677)	(562)
Other, net	(265)	(109)	(204)	(221)	(235)	(33)
Net cash provided by (used for) financing activities	(3,306)	22)	(3,223)	(58)	10,977)	(1,761)
Effect of exchange rate changes on cash and equivalents and restricted cash	14)	(3)	(12)	(17)	(6)	(12)
Net increase (decrease) in cash and equivalents and restricted cash	(525)	2,326)	(646)	(13,039)	12,638)	117)
Opening cash and equivalents and restricted cash	2,917)	590)	1,236)	14,179)	1,541)	1,424)
Closing cash and equivalents and restricted cash	2,392)	2,916)	590)	1,140)	14,179)	1,541)

Based on: 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), 10-K (reporting date: 2016-09-30).

Net Income: Net income exhibited fluctuations over the period, starting at 976 million USD in 2016 and reaching a low point of 311 million USD in 2018 before increasing substantially to 2,092 million USD in 2021. The trend indicates variability with a strong recovery and growth in the later years.
Depreciation and Amortization: Depreciation and amortization expenses showed a rising trend overall, starting at 1,114 million USD in 2016 and more than doubling by 2018 to 1,978 million USD. It continued to moderately increase through 2021, peaking at 2,273 million USD, indicating ongoing investments in fixed assets and possibly acquisitions.
Share-Based Compensation: Share-based compensation experienced moderate fluctuations, peaking at 322 million USD in 2018 and slightly decreasing to 237 million USD by 2021. This suggests relatively stable compensation expense related to equity plans.
Deferred Income Taxes: Deferred income taxes were negative throughout the periods, with minor fluctuations between -426 million USD in 2016 and -236 million USD in 2017, maintaining this general negative trend through 2021. The consistency of this liability implies ongoing tax deferrals.
Changes in Working Capital Components: Trade receivables, net declined in impact from -128 million USD in 2016 to smaller negative values in most periods, reflecting modest variation in receivables management. Inventories showed erratic behavior, fluctuating between positive and negative values from 69 million USD in 2016 to -104 million USD in 2021, indicating inconsistent inventory levels or valuation. Prepaid expenses and other items also fluctuated, with a significant negative value in 2017 (-366 million USD) and variability thereafter. Accounts payable and related liabilities showed wide swings including a major positive in 2018 (867 million USD) and negative values in 2019, suggesting volatility in payable management. Overall, changes in operating assets and liabilities mirrored this volatility.
Pension Obligations: Pension obligations fluctuated notably, from a negative 32 million USD in 2016 to positive values in later years, peaking at 95 million USD in 2020, indicating changing pension liabilities or funding status.
Non-Recurring Items and Gains/Losses: There were several significant one-time items recorded. Lease contract modification charges appeared prominently in 2017 (748 million USD). Notable gains included a 303 million USD loss from the sale of Vyaire interest in 2018 and a 336 million USD loss on business sale the same year. Product liability-related charges began appearing in 2019 with a sizeable amount of 914 million USD, decreasing moderately by 2021 but remaining significant. These items reflect substantial extraordinary events affecting profitability and cash flows.
Adjusted Net Income and Operating Cash Flow: Adjustments to net income consistently contributed large positive amounts to reconcile net income to operating cash flow, reflecting non-cash charges and working capital changes. Net cash provided by operating activities increased steadily from 2,559 million USD in 2016 to 4,647 million USD in 2021, demonstrating improved cash generation capabilities.
Capital Expenditures and Investing Activities: Capital expenditures showed a rising trend from -693 million USD in 2016 to -1,231 million USD in 2021, indicating ongoing investment in property, plant, and equipment. A substantial net cash outflow from acquisitions occurred notably in 2018 (-15,281 million USD), with smaller acquisition-related expenditures in other years. Divestiture proceeds peaked in 2018 and 2019. Overall, net cash used for investing activities was dramatically negative in 2018, primarily due to acquisitions, with more moderate outflows in other years.
Financing Activities: Financing cash flows showed significant volatility. Proceeds from long-term debt increased substantially in 2017 (11,462 million USD) and rose gradually through 2021. Debt repayments were consistently high, nearing 5,112 million USD in 2021. Equity issuance occurred primarily in 2017 and 2020, while share repurchases were notable only in 2021 (-1,750 million USD). Dividends paid increased steadily each year, reaching over 1,000 million USD by 2021. The net effect of financing activities alternated between large inflows (2017) and outflows (2021), indicating active capital structure management.
Cash Position and Exchange Effects: The net change in cash and equivalents was highly variable, with a large increase in 2017 (12,638 million USD) and a substantial decrease in 2018 (-13,039 million USD), largely reflecting the acquisition activity in that year. Subsequent years showed more moderate fluctuations, ending with a decrease in 2021 (-525 million USD). Opening and closing cash balances mirrored these trends. Effects of exchange rate changes were minor in magnitude but consistently negative except for a positive adjustment in 2021.

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Becton, Dickinson & Co. (NYSE:BDX)

Cash Flow Statement