McKesson 2016 Annual Report Download - page 73

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McKESSON CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Years Ended March 31,
2016 2015 2014
Operating Activities
Net income $ 2,310 $ 1,543 $ 1,258
Adjustments to reconcile to net cash provided by operating activities:
Depreciation 281 306 185
Amortization 604 711 550
Deferred taxes 64 171 17
Share-based compensation expense 123 174 160
Gain from sales of businesses (103) — —
Impairment charges and impairment of equity investment 8 241 80
Charges associated with last-in-first-out inventory method 244 337 311
Other non-cash items 108 47 130
Changes in operating assets and liabilities, net of acquisitions:
Receivables (1,957) (2,821) (868)
Inventories (1,251) (2,144) (1,182)
Drafts and accounts payable 3,302 4,718 2,412
Deferred revenue (120) (141) (81)
Taxes (78) (222) 218
Claim and litigation charges — 150 68
Litigation settlement payments — — (105)
Other 137 42 (17)
Net cash provided by operating activities 3,672 3,112 3,136
Investing Activities
Payments for property, plant and equipment (488) (376) (278)
Capitalized software expenditures (189) (169) (141)
Acquisitions, net of cash and cash equivalents acquired (40) (170) (4,634)
Proceeds from sale of businesses and equity investment, net 210 15 97
Restricted cash for acquisitions (939) — 46
Other (111) 23 (136)
Net cash used in investing activities (1,557) (677) (5,046)
Financing Activities
Proceeds from short-term borrowings 1,561 3,100 6,080
Repayments of short-term borrowings (1,688) (3,152) (6,132)
Proceeds from issuances of long-term debt — 3 4,124
Repayments of long-term debt (1,598) (353) (348)
Common stock transactions:
Issuances 123 152 177
Share repurchases, including shares surrendered for tax withholding (1,612) (450) (130)
Dividends paid (244) (227) (214)
Other 5 (41) 62
Net cash (used in) provided by financing activities (3,453) (968) 3,619
Effect of exchange rate changes on cash and cash equivalents 45 (319) 28
Net (decrease) increase in cash and cash equivalents (1,293) 1,148 1,737
Cash and cash equivalents at beginning of year 5,341 4,193 2,456
Cash and cash equivalents at end of year $ 4,048 $ 5,341 $ 4,193
Supplemental Cash Flow Information
Cash paid for:
Interest $ 337 $ 359 $ 255
Income taxes, net of refunds $ 923 $ 866 $ 508
Non-cash item:
Fair value of debt assumed on acquisitions $ — $ — $(2,312)
Conversion of Celesio’s convertible bonds to equity $ — $ — $ 313
See Financial Notes
67