Medtronic 2014 Annual Report Download - page 76

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Medtronic, Inc.
Consolidated Statements of Cash Flows
Fiscal Year
2014 2013 2012
(in millions)
Operating Activities:
Net earnings $ 3,065 $ 3,467 $ 3,617
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 850 819 833
Amortization of debt discount and issuance costs 8 104 85
Gain on sale of Physio-Control — — (218)
Acquisition-related items 110 (74) 45
Provision for doubtful accounts 43 51 66
Deferred income taxes (207) (7) 14
Stock-based compensation 145 152 161
Other, net (28) — —
Change in operating assets and liabilities, net of acquisitions:
Accounts receivable, net (70) 1 (252)
Inventories (39) 93 (185)
Accounts payable and accrued liabilities (117) 481 300
Other operating assets and liabilities 444 (215) 155
Certain litigation charges, net 770 245 90
Certain litigation payments (15) (175) (241)
Net cash provided by operating activities 4,959 4,942 4,470
Investing Activities:
Acquisitions, net of cash acquired (385) (820) (556)
Proceeds from divestiture of Physio-Control — — 386
Additions to property, plant, and equipment (396) (457) (484)
Purchases of marketable securities (10,895) (12,321) (9,704)
Sales and maturities of marketable securities 8,111 10,511 7,717
Other investing activities, net (29) (14) (21)
Net cash used in investing activities (3,594) (3,101) (2,662)
Financing Activities:
Acquisition-related contingent consideration (1) (18) (118)
Change in short-term borrowings, net 127 (720) 165
Repayment of short-term borrowings (maturities greater than 90 days) (1,301) (2,700) (3,275)
Proceeds from short-term borrowings (maturities greater than 90 days) 1,176 2,628 2,525
Issuance of long-term debt 1,994 2,980 1,210
Payments on long-term debt (565) (2,214) (24)
Dividends to shareholders (1,116) (1,055) (1,021)
Issuance of common stock 1,307 267 96
Repurchase of common stock (2,553) (1,247) (1,440)
Other financing activities 14 (22) —
Net cash used in financing activities (918) (2,101) (1,882)
Effect of exchange rate changes on cash and cash equivalents 37 7 (71)
Net change in cash and cash equivalents 484 (253) (145)
Cash and cash equivalents at beginning of period 919 1,172 1,317
Cash and cash equivalents at end of period $ 1,403 $ 919 $ 1,172
Supplemental Cash Flow Information
Cash paid for:
Income taxes $ 521 $ 537 $ 454
Interest 394 333 312
The consolidated statement of cash flows for fiscal year 2012 includes the activities of the discontinued operations.
The accompanying notes are an integral part of these consolidated financial statements.
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