Medtronic 2016 Annual Report Download - page 72

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Table of Contents
69
Medtronic plc
Consolidated Statements of Cash Flows
Fiscal Year
(in millions) 2016 2015 2014
Operating Activities:
Net income $ 3,538 $ 2,675 $ 3,065
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 2,820 1,306 850
Amortization of debt discount and issuance costs 29 76 8
Acquisition-related items 218 634 110
Provision for doubtful accounts 49 35 43
Deferred income taxes (460) (926) (207)
Stock-based compensation 375 439 145
Loss on debt extinguishment 163 — —
Other, net (111) (134) (28)
Change in operating assets and liabilities, net of acquisitions:
Accounts receivable, net (435) (413) (70)
Inventories (186) (282) (39)
Accounts payable and accrued liabilities (65) 1,616 (117)
Other operating assets and liabilities (403) 643 444
Certain litigation charges, net 26 42 770
Certain litigation payments (340) (809) (15)
Net cash provided by operating activities 5,218 4,902 4,959
Investing Activities:
Acquisitions, net of cash acquired (1,213) (14,884) (385)
Additions to property, plant, and equipment (1,046) (571) (396)
Purchases of marketable securities (5,406) (7,582) (10,895)
Sales and maturities of marketable securities 9,924 5,890 8,111
Other investing activities, net (14) 89 (29)
Net cash provided by (used in) investing activities 2,245 (17,058) (3,594)
Financing Activities:
Acquisition-related contingent consideration (22) (85) (1)
Change in short-term borrowings, net 7 (1) 127
Repayment of short-term borrowings (maturities greater than 90 days) (139) (150) (1,301)
Proceeds from short-term borrowings (maturities greater than 90 days) 139 150 1,176
Issuance of long-term debt — 19,942 1,994
Payments on long-term debt (5,132) (1,268) (565)
Dividends to shareholders (2,139) (1,337) (1,116)
Issuance of ordinary shares 491 649 1,307
Repurchase of ordinary shares (2,830) (1,920) (2,553)
Other financing activities 82 (31) 14
Net cash (used in) provided by financing activities (9,543) 15,949 (918)
Effect of exchange rate changes on cash and cash equivalents 113 (353) 37
Net change in cash and cash equivalents (1,967) 3,440 484
Cash and cash equivalents at beginning of period 4,843 1,403 919
Cash and cash equivalents at end of period $ 2,876 $ 4,843 $ 1,403
Supplemental Cash Flow Information
Cash paid for:
Income taxes $ 1,379 $ 632 $ 521
Interest 1,266 578 394
The accompanying notes are an integral part of these consolidated financial statements.