Procter & Gamble Co. (PG)

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 flaws 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.

Procter & Gamble Co., consolidated cash flow statement

US$ in millions

12 months ended	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
Net earnings	3,966	9,861	15,411	10,604	7,144	11,785
Depreciation and amortization	2,824	2,834	2,820	3,078	3,134	3,141
Loss on early extinguishment of debt	—	346	543	—	—	—
Share-based compensation expense	515	395	351	335	337	360
Deferred income taxes	(411)	(1,844)	(601)	(815)	(803)	(44)
Gain on sale of assets	(678)	(176)	(5,490)	(41)	(766)	(154)
Venezuela deconsolidation charge	—	—	—	—	2,028	—
Goodwill and indefinite-lived intangible impairment charges	8,345	—	—	450	2,174	—
Change in accounts receivable	(276)	(177)	(322)	35	349	87
Change in inventories	(239)	(188)	71	116	313	8
Change in accounts payable, accrued and other liabilities	1,856	1,385	(149)	1,285	928	1
Change in other operating assets and liabilities	(973)	2,000	(43)	204	(976)	(1,557)
Change in operating assets and liabilities	368	3,020	(443)	1,640	614	(1,461)
Other	313	431	162	184	746	331
Operating activities	15,242	14,867	12,753	15,435	14,608	13,958
Capital expenditures	(3,347)	(3,717)	(3,384)	(3,314)	(3,736)	(3,848)
Proceeds from asset sales	394	269	571	432	4,497	570
Cash related to deconsolidated Venezuela operations	—	—	—	—	(908)	—
Acquisitions, net of cash acquired	(3,945)	(109)	(16)	(186)	(137)	(24)
Purchases of short-term investments	(158)	(3,909)	(4,843)	(2,815)	(3,647)	(568)
Proceeds from sales and maturities of short-term investments	3,628	3,928	1,488	1,354	1,203	24
Pre-divestiture addition of restricted cash related to the Beauty Brands divestiture	—	—	(874)	(996)	—	—
Cash transferred at closing related to the Beauty Brands divestiture	—	—	(475)	—	—	—
Release of restricted cash upon closing of the Beauty Brands divestiture	—	—	1,870	—	—	—
Cash transferred in Batteries divestiture	—	—	—	(143)	—	—
Change in other investments	(62)	27	(26)	93	(163)	(261)
Investing activities	(3,490)	(3,511)	(5,689)	(5,575)	(2,891)	(4,107)
Dividends to shareholders	(7,498)	(7,310)	(7,236)	(7,436)	(7,287)	(6,911)
Change in short-term debt	(2,215)	(3,437)	2,727	(418)	(2,580)	3,304
Additions to long-term debt	2,367	5,072	3,603	3,916	2,138	4,334
Reductions of long-term debt	(969)	(2,873)	(4,931)	(2,213)	(3,512)	(4,095)
Treasury stock purchases	(5,003)	(7,004)	(5,204)	(4,004)	(4,604)	(6,005)
Treasury stock from cash infused in Batteries divestiture	—	—	—	(1,730)	—	—
Impact of stock options and other	3,324	1,177	2,473	2,672	2,826	2,094
Financing activities	(9,994)	(14,375)	(8,568)	(9,213)	(13,019)	(7,279)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(88)	19	(29)	(381)	(411)	39
Change in cash, cash equivalents and restricted cash	1,670	(3,000)	(1,533)	266	(1,713)	2,611
Cash, cash equivalents and restricted cash, beginning of year	2,569	5,569	7,102	6,836	8,558	5,947
Cash, cash equivalents and restricted cash, end of year	4,239	2,569	5,569	7,102	6,845	8,558

Based on: 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07), 10-K (filing date: 2014-08-08).

Cash flow statement item	Description	The company
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.	Procter & Gamble Co.’s operating activities increased from 2017 to 2018 and from 2018 to 2019.
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.	Procter & Gamble Co.’s investing activities increased from 2017 to 2018 and from 2018 to 2019.
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.	Procter & Gamble Co.’s financing activities decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.