McKesson 2014 Annual Report Download - page 64

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McKESSON CORPORATION
See Financial Notes
61
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Years Ended March 31,
2014 2013 2012
Operating Activities
Net income $ 1,258 $ 1,338 $ 1,403
Adjustments to reconcile to net cash provided by operating activities:
Depreciation 186 133 127
Amortization 518 397 366
Other deferred taxes 16 608 175
Share-based compensation expense 160 167 154
Gain on business combination — (81) —
Impairment of an equity investment — 191 —
Charges associated with last-in-first-out inventory method 311 13 11
Other non-cash items 130 90 93
Changes in operating assets and liabilities, net of acquisitions:
Receivables (885) 315 (768)
Inventories (1,201) (60) (882)
Drafts and accounts payable 2,412 (127) 2,037
Deferred revenue (36) (1) 97
Taxes 218 (86) 19
Litigation charges 68 72 149
Litigation settlement payments (105) (483) (26)
Other 86 (3) (5)
Net cash provided by operating activities 3,136 2,483 2,950
Investing Activities
Property acquisitions (274) (232) (221)
Capitalized software expenditures (141) (153) (177)
Acquisitions, net of cash and cash equivalents acquired (4,634) (1,873) (1,051)
Proceeds from sales of business and equity investment 97 — —
Other (94) 49 (53)
Net cash used in investing activities (5,046) (2,209) (1,502)
Financing Activities
Proceeds from short-term borrowings 6,145 2,225 400
Repayments of short-term borrowings (6,122) (2,625) —
Proceeds from issuances of long-term debt 4,114 1,798 —
Repayments of long-term debt (356) (1,143) (430)
Common stock transactions:
Issuances 177 166 167
Share repurchases, including shares surrendered for tax withholding (130) (1,214) (1,874)
Dividends paid (214) (194) (195)
Other 5 31 27
Net cash provided by (used in) financing activities 3,619 (956) (1,905)
Effect of exchange rate changes on cash and cash equivalents 28 (11) (6)
Net increase (decrease) in cash and cash equivalents 1,737 (693) (463)
Cash and cash equivalents at beginning of year 2,456 3,149 3,612
Cash and cash equivalents at end of year $ 4,193 $ 2,456 $ 3,149
Supplemental Cash Flow Information
Cash paid for:
Interest $ 255 $ 207 $ 228
Income taxes, net of refunds 508 55 337
Non-cash item:
Fair value of debt assumed on acquisition $ (2,312) $ (635) $ —
Conversion of Celesio’s convertible bonds to equity $ 313 $ — $ —