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.

CVS Health Corp., Consolidated Statement of Cash Flows

USD $ in millions

 
12 months ended Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Net income 6,623  5,319  5,239  4,644  4,592 
Depreciation and amortization 2,479  2,475  2,092  1,931  1,870 
Goodwill impairments 181 
Losses on settlements of defined benefit pension plans 187 
Stock-based compensation 234  222  230  165  141 
Loss on early extinguishment of debt 643  521 
Deferred income taxes (1,334) 18  (252)
Other noncash items 53  135  (14) (58) (86)
Accounts receivable, net (941) (243) (1,594) (737) (2,210)
Inventories (514) (742) (1,141) (770) 12 
Other current assets (341) 35  355  (383) 105 
Other assets (43) (135)
Accounts payable and claims and discounts payable 1,710  2,189  2,834  1,742  1,024 
Accrued expenses (371) 59  765  1,060  471 
Other long-term liabilities 38  (104) 13  (1)
Change in operating assets and liabilities, net of effects from acquisitions (416) 1,257  1,117  934  (734)
Adjustments required to reconcile net income to net cash provided by operating activities 1,384  4,750  3,173  3,493  1,191 
Net cash provided by operating activities 8,007  10,069  8,412  8,137  5,783 
Purchases of property and equipment (1,918) (2,224) (2,367) (2,136) (1,984)
Proceeds from sale-leaseback transactions 265  230  411  515  600 
Proceeds from sale of property and equipment and other assets 33  37  35  11  54 
Acquisitions (net of cash acquired) and other investments (1,287) (539) (11,475) (2,439) (415)
Purchase of available-for-sale investments (86) (65) (267) (157) (226)
Maturity of available-for-sale investments 61  91  243  161  136 
Net cash used in investing activities (2,932) (2,470) (13,420) (4,045) (1,835)
Increase (decrease) in short-term debt (598) 1,874  (685) 685  (690)
Proceeds from issuance of long-term debt 3,455  14,805  1,483  3,964 
Repayments of long-term debt (5,943) (2,902) (3,100)
Purchase of noncontrolling interest in subsidiary (39)
Payment of contingent consideration (26) (58)
Dividends paid (2,049) (1,840) (1,576) (1,288) (1,097)
Proceeds from exercise of stock options 329  224  299  421  500 
Payments for taxes related to net share settlement of equity awards (71)
Excess tax benefits from stock-based compensation 72  127  106  62 
Repurchase of common stock (4,361) (4,461) (5,001) (4,001) (3,976)
Other (1) (5) (3)
Net cash provided by (used in) financing activities (6,751) (6,689) 5,006  (5,694) (1,237)
Effect of exchange rate changes on cash and cash equivalents (20) (6)
Net increase (decrease) in cash and cash equivalents (1,675) 912  (22) (1,608) 2,714 
Cash and cash equivalents at the beginning of the period 3,371  2,459  2,481  4,089  1,375 
Cash and cash equivalents at the end of the period 1,696  3,371  2,459  2,481  4,089 
Source: CVS Health Corp., Annual Reports
Item Description The company
Net cash provided by operating activities The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. CVS Health Corp.'s net cash provided by operating activities increased from 2015 to 2016 but then declined significantly from 2016 to 2017.

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