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.
Pfizer Inc., 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 before allocation to noncontrolling interests | 21,355 | 7,246 | 6,986 | 9,168 | 22,072 | ||||||
| Depreciation and amortization | 6,269 | 5,757 | 5,157 | 5,537 | 6,410 | ||||||
| Asset write-offs and impairments | 634 | 1,613 | 1,119 | 531 | 1,368 | ||||||
| Foreign currency loss related to Venezuela | – | – | 806 | – | – | ||||||
| (Gain) loss on disposal of discontinued operations | – | – | 6 | (51) | (10,446) | ||||||
| Loss on sale of HIS net assets | 55 | 1,712 | – | – | – | ||||||
| TCJA impact | (10,660) | – | – | – | – | ||||||
| Gain associated with the transfer of certain product rights to an equity-method investment | – | – | – | – | (459) | ||||||
| Deferred taxes from continuing operations | (2,410) | (700) | (20) | 320 | 1,726 | ||||||
| Deferred taxes from discontinued operations | – | – | 2 | (3) | (23) | ||||||
| Share-based compensation expense | 840 | 691 | 669 | 586 | 523 | ||||||
| Benefit plan contributions (in excess of) less than expense | (961) | (712) | (617) | (199) | 310 | ||||||
| Other adjustments, net | 52 | 209 | (160) | (429) | (324) | ||||||
| Trade accounts receivable | 259 | (134) | 21 | 148 | 940 | ||||||
| Inventories | (357) | 365 | (199) | 175 | (538) | ||||||
| Other assets | (31) | (60) | 249 | 1,156 | (822) | ||||||
| Trade accounts payable | 46 | 871 | 254 | 297 | 382 | ||||||
| Other liabilities | (67) | (223) | 474 | (844) | (3,184) | ||||||
| Other tax accounts, net | 1,446 | (734) | (235) | 491 | (170) | ||||||
| Changes in assets and liabilities, net of acquisitions and divestitures | 1,296 | 85 | 564 | 1,423 | (3,392) | ||||||
| Adjustments to reconcile net income before allocation to noncontrolling interests to net cash provided by operating activities | (4,885) | 8,655 | 7,526 | 7,715 | (4,307) | ||||||
| Net cash provided by operating activities | 16,470 | 15,901 | 14,512 | 16,883 | 17,765 | ||||||
| Purchases of property, plant and equipment | (1,956) | (1,823) | (1,397) | (1,199) | (1,206) | ||||||
| Purchases of short-term investments | (14,596) | (15,957) | (28,581) | (50,954) | (42,761) | ||||||
| Proceeds from redemptions/sales of short-term investments | 10,307 | 29,436 | 40,064 | 47,374 | 41,127 | ||||||
| Net (purchases of) proceeds from redemptions/sales of short-term investments with original maturities of three months or less | 2,058 | (4,218) | 5,768 | 3,930 | (4,277) | ||||||
| Purchases of long-term investments | (3,537) | (8,011) | (9,542) | (10,718) | (11,020) | ||||||
| Proceeds from redemptions/sales of long-term investments | 3,594 | 11,254 | 6,929 | 6,145 | 7,555 | ||||||
| Acquisitions of businesses, net of cash acquired | (1,000) | (18,368) | (16,466) | (195) | (15) | ||||||
| Acquisitions of intangible assets | (261) | (176) | (99) | (384) | (259) | ||||||
| Other investing activities, net | 650 | 52 | 344 | 347 | 231 | ||||||
| Net cash used in investing activities | (4,741) | (7,811) | (2,980) | (5,654) | (10,625) | ||||||
| Proceeds from short-term borrowings | 8,464 | 7,472 | 5,557 | 13 | 4,323 | ||||||
| Principal payments on short-term borrowings | (9,990) | (5,102) | (3,965) | (10) | (4,234) | ||||||
| Net proceeds from (payments on) short-term borrowings with original maturities of three months or less | 1,401 | (3,084) | 2,717 | (1,841) | 3,475 | ||||||
| Proceeds from issuances of long-term debt | 5,274 | 10,976 | – | 4,491 | 6,618 | ||||||
| Principal payments on long-term debt | (6,154) | (7,689) | (3,003) | (2,104) | (4,146) | ||||||
| Purchases of common stock | (5,000) | (5,000) | (6,160) | (5,000) | (16,290) | ||||||
| Cash dividends paid | (7,659) | (7,317) | (6,940) | (6,609) | (6,580) | ||||||
| Proceeds from exercise of stock options | 862 | 1,019 | 1,263 | 1,002 | 1,750 | ||||||
| Other financing activities, net | (233) | (196) | 298 | 72 | 109 | ||||||
| Net cash used in financing activities | (13,035) | (8,921) | (10,233) | (9,986) | (14,975) | ||||||
| Effect of exchange-rate changes on cash and cash equivalents | 53 | (215) | (1,001) | (83) | (63) | ||||||
| Net increase (decrease) in cash and cash equivalents | (1,253) | (1,046) | 298 | 1,160 | (7,898) | ||||||
| Cash and cash equivalents, beginning | 2,595 | 3,641 | 3,343 | 2,183 | 10,081 | ||||||
| Cash and cash equivalents, end | 1,342 | 2,595 | 3,641 | 3,343 | 2,183 |
| 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 2015 to 2016 and from 2016 to 2017. |