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 flows 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.

Eli Lilly & Co., 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)	8,318,400	3,232,000	(204,100)	2,737,600	2,408,400
Gain related to disposition of Elanco	(3,680,500)	—	—	—	—
Gain on sale of antibiotic business in China	(309,800)	—	—	—	—
Depreciation and amortization	1,232,600	1,609,000	1,567,300	1,496,600	1,427,700
Change in deferred income taxes	62,400	326,800	(787,900)	439,500	(748,400)
Stock-based compensation expense	312,400	279,500	281,300	255,300	217,800
Acquired in-process research and development	239,600	1,983,900	1,112,600	30,000	535,000
Other non-cash operating activities, net	348,700	472,000	441,500	376,100	(149,700)
Receivables, (increase) decrease	(127,200)	(996,700)	(357,000)	(709,400)	(304,500)
Inventories, (increase) decrease	(258,700)	7,800	(253,900)	(328,200)	(736,300)
Other assets, (increase) decrease	(602,300)	(980,000)	(590,100)	(265,500)	(338,800)
Income taxes payable, increase (decrease)	(221,300)	(125,300)	3,489,600	(304,800)	—
Accounts payable and other liabilities, increase (decrease)	(477,700)	(284,500)	916,300	1,123,800	461,600
Other changes in operating assets and liabilities, net of acquisitions and divestitures	(1,687,200)	(2,378,700)	3,204,900	(484,100)	(918,000)
Adjustments to reconcile net income (loss) to cash flows from operating activities	(3,481,800)	2,292,500	5,819,700	2,113,400	364,400
Net cash provided by operating activities	4,836,600	5,524,500	5,615,600	4,851,000	2,772,800
Purchases of property and equipment	(1,033,900)	(1,210,600)	(1,076,800)	(1,037,000)	(1,066,200)
Cash (restricted) released for pending acquisition	—	—	—	—	5,405,600
Proceeds from sales and maturities of short-term investments	136,600	2,552,500	4,852,500	1,642,000	2,161,800
Purchases of short-term investments	(42,700)	(112,200)	(3,389,700)	(1,327,400)	(842,200)
Proceeds from sales of noncurrent investments	609,800	3,509,500	2,586,000	2,086,000	3,068,400
Purchases of noncurrent investments	(247,500)	(837,900)	(4,611,600)	(4,346,000)	(3,226,500)
Proceeds from sale of product rights	—	—	—	—	410,000
Purchases of in-process research and development	(319,600)	(1,807,600)	(1,086,800)	(55,000)	(560,000)
Cash paid for acquisitions, net of cash acquired	(6,917,700)	—	(882,100)	(45,000)	(5,283,100)
Cash distributed to Elanco upon disposition	(374,000)	—	—	—	—
Cash received for sale of antibiotic business in China	354,800	—	—	—	—
Other investing activities, net	(248,700)	(187,700)	(175,100)	(56,700)	(41,000)
Net cash (used for) provided by investing activities	(8,082,900)	1,906,000	(3,783,600)	(3,139,100)	26,800
Dividends paid	(2,409,800)	(2,311,800)	(2,192,100)	(2,158,500)	(2,127,300)
Net change in short-term borrowings	995,400	(2,197,900)	1,397,500	1,293,200	(2,680,600)
Proceeds from issuance of long-term debt	6,556,400	2,477,700	2,232,000	1,206,600	4,454,700
Repayments of long-term debt	(2,866,400)	(1,009,100)	(630,600)	(200)	(1,955,700)
Purchases of common stock	(4,400,000)	(4,150,700)	(299,800)	(600,100)	(749,500)
Net proceeds from Elanco initial public offering	—	1,659,700	—	—	—
Other financing activities, net	(200,100)	(372,800)	(364,400)	(300,800)	139,200
Net cash provided by (used for) financing activities	(2,324,500)	(5,904,900)	142,600	(559,800)	(2,919,200)
Effect of exchange rate changes on cash and cash equivalents	(89,900)	(63,600)	(20,500)	(236,400)	(85,600)
Net increase (decrease) in cash and cash equivalents	(5,660,700)	1,462,000	1,954,100	915,700	(205,200)
Cash and cash equivalents at beginning of year	7,998,200	6,536,200	4,582,100	3,666,400	3,871,600
Cash and cash equivalents at end of year	2,337,500	7,998,200	6,536,200	4,582,100	3,666,400

Based on: 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-19).

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.	Eli Lilly & Co.’s net cash provided by operating activities decreased from 2017 to 2018 and from 2018 to 2019.
Net cash (used for) 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.	Eli Lilly & Co.’s net cash (used for) provided by investing activities increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.
Net cash provided by (used for) 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.	Eli Lilly & Co.’s net cash provided by (used for) financing activities decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Eli Lilly & Co. (NYSE:LLY)

Cash Flow Statement