Statement of Cash Flows

Difficulty level: Basic

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.

Pfizer Inc., Consolidated Statement of Cash Flows

USD $ in millions

 
12 months ended Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Net income before allocation to noncontrolling interests 9,168  22,072  14,598  10,051  8,289 
Depreciation and amortization 5,537  6,410  7,611  9,026  8,487 
Asset write-offs and impairments 531  1,368  1,299  1,198  3,486 
Gain on disposal of discontinued operations (51) (10,446) (7,123) (1,688)
Gain associated with the transfer of certain product rights to an equity-method investment (459)
Deferred taxes from continuing operations 320  1,726  739  264  1,953 
Deferred taxes from discontinued operations (3) (23) 1,459  190 
Share-based compensation expense 586  523  481  419  405 
Acquisition-related in-process research and development charges 125 
(Gain) loss on disposals 15  (155)
Benefit plan contributions (in excess of) less than expense (199) 310  135  (1,775) (691)
Other adjustments, net (429) (324) (203) (189) (19)
Accounts receivable 148  940  275  (66) (608)
Inventories 175  (538) (631) 1,084  2,917 
Other assets 1,156  (822) 83  582  (896)
Accounts payable 297  382  579 
Other liabilities (844) (3,184) (3,438) 1,147  827 
Other tax accounts, net 491  (170) 1,190  (18) (12,666)
Changes in assets and liabilities, net of acquisitions and divestitures 1,423  (3,392) (1,942) 2,729  (10,426)
Adjustments to reconcile net income before allocation to noncontrolling interests to net cash provided by operating activities 7,715  (4,307) 2,456  10,189  3,165 
Net cash provided by operating activities 16,883  17,765  17,054  20,240  11,454 
Purchases of property, plant and equipment (1,199) (1,206) (1,327) (1,660) (1,513)
Purchases of short-term investments (50,954) (42,761) (24,018) (18,447) (11,082)
Proceeds from redemptions/sales of short-term investments 47,374  41,127  25,302  14,176  5,699 
Net (purchases of) proceeds from redemptions/sales of short-term investments with original maturities of 90 days or less 3,930  (4,277) 1,459  10,874  5,950 
Purchases of long-term investments (10,718) (11,020) (11,145) (4,263) (4,128)
Proceeds from redemptions/sales of long-term investments 6,145  7,555  4,990  2,147  4,737 
Acquisitions of businesses, net of cash acquired (195) (15) (1,050) (3,282) (273)
Acquisitions of intangible assets (384) (259) (92) (222)
Proceeds from sale of business 11,850  2,376 
Other investing activities, net 347  231  185  501  118 
Net cash (used in) provided by investing activities (5,654) (10,625) 6,154  2,200  (492)
Proceeds from short-term borrowings 13  4,323  7,995  12,810  6,400 
Principal payments on short-term borrowings (10) (4,234) (3) (3,826) (9,249)
Net proceeds from (payments on) short-term borrowings with original maturities of 90 days or less (1,841) 3,475  (8,204) (7,540) (1,297)
Proceeds from issuances of long-term debt 4,491  6,618 
Principal payments on long-term debt (2,104) (4,146) (1,513) (6,986) (6)
Purchases of common stock (5,000) (16,290) (8,228) (9,000) (1,000)
Cash dividends paid (6,609) (6,580) (6,534) (6,234) (6,088)
Proceeds from exercise of stock options 1,002  1,750  568  153 
Other financing activities, net 72  109  (80) 15  66 
Net cash used in financing activities (9,986) (14,975) (15,999) (20,607) (11,174)
Effect of exchange-rate changes on cash and cash equivalents (83) (63) (2) (29) (31)
Net increase (decrease) in cash and cash equivalents 1,160  (7,898) 7,207  1,804  (243)
Cash and cash equivalents, beginning 2,183  10,081  3,182  1,735  1,978 
Cash and cash equivalents, ending 3,343  2,183  10,389  3,539  1,735 
Source: Pfizer Inc., 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. Pfizer Inc.'s net cash provided by operating activities increased from 2012 to 2013 but then declined significantly from 2013 to 2014.

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