Johnson and Johnson 2014 Annual Report Download - page 34

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JOHNSON & JOHNSON AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Millions) (Note 1)
2014 2013 2012
Cash flows from operating activities
Net earnings $16,323 13,831 10,514
Adjustments to reconcile net earnings to cash flows from operating activities:
Depreciation and amortization of property and intangibles 3,895 4,104 3,666
Stock based compensation 792 728 662
Noncontrolling interest – – 339
Venezuela adjustments 87 108 –
Asset write-downs 410 739 2,131
Net gain on sale of assets/businesses (2,383) (113) (908)
Net gain on equity investment transactions – (417) –
Deferred tax provision 441 (607) (39)
Accounts receivable allowances (28) (131) 92
Changes in assets and liabilities, net of effects from acquisitions and divestitures:
Increase in accounts receivable (247) (632) (9)
Increase in inventories (1,120) (622) (1)
Increase in accounts payable and accrued liabilities 955 1,821 2,768
Decrease/(Increase) in other current and non-current assets 442 (1,693) (1,264)
(Decrease)/Increase in other current and non-current liabilities (1,096) 298 (2,555)
Net cash flows from operating activities 18,471 17,414 15,396
Cash flows from investing activities
Additions to property, plant and equipment (3,714) (3,595) (2,934)
Proceeds from the disposal of assets/businesses, net 4,631 458 1,509
Acquisitions, net of cash acquired (Note 20) (2,129) (835) (4,486)
Purchases of investments (34,913) (18,923) (13,434)
Sales of investments 24,119 18,058 14,797
Other (primarily intangibles) (299) (266) 38
Net cash used by investing activities (12,305) (5,103) (4,510)
Cash flows from financing activities
Dividends to shareholders (7,768) (7,286) (6,614)
Repurchase of common stock (7,124) (3,538) (12,919)
Proceeds from short-term debt 1,863 1,411 3,268
Retirement of short-term debt (1,267) (1,397) (6,175)
Proceeds from long-term debt 2,098 3,607 45
Retirement of long-term debt (1,844) (1,593) (804)
Proceeds from the exercise of stock options/excess tax benefits 1,782 2,649 2,720
Other – 56 (83)
Net cash used by financing activities (12,260) (6,091) (20,562)
Effect of exchange rate changes on cash and cash equivalents (310) (204) 45
(Decrease)/Increase in cash and cash equivalents (6,404) 6,016 (9,631)
Cash and cash equivalents, beginning of year (Note 1) 20,927 14,911 24,542
Cash and cash equivalents, end of year (Note 1) $14,523 20,927 14,911
Supplemental cash flow data
Cash paid during the year for:
Interest $603 596 616
Interest, net of amount capitalized 488 491 501
Income taxes 3,536 3,155 2,507
Supplemental schedule of non-cash investing and financing activities
Issuance of common stock associated with the acquisition of Synthes, Inc. – – 13,335
Treasury stock issued for employee compensation and stock option plans, net of cash proceeds 1,170 743 615
Conversion of debt 17 22 –
Acquisitions
Fair value of assets acquired $2,167 1,028 19,025
Fair value of liabilities assumed and noncontrolling interests (38) (193) (1,204)
Net fair value of acquisitions $2,129 835 17,821
Less: Issuance of common stock associated with the acquisition of Synthes, Inc. – – 13,335
Net cash paid for acquisitions $2,129 835 4,486
See Notes to Consolidated Financial Statements
24 •Johnson & Johnson 2014 Annual Report