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Table of Contents
57
results could differ materially from those estimates. See Note 5 to the consolidated financial statements in “Item 8. Financial
Statements and Supplementary Data” in this Annual Report on Form 10-K for additional information regarding fair value
measurements.
Summary of Cash Flows
Fiscal Year
(in millions) 2016 2015 2014
Cash provided by (used in):
Operating activities $ 5,218 $ 4,902 $ 4,959
Investing activities 2,245 (17,058)(3,594)
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
Operating Activities Our net cash provided by operating activities was $5.2 billion for the fiscal year ended April 29, 2016
compared to $4.9 billion provided in the prior year. The $316 million increase was primarily driven by an increase in net income
before depreciation and amortization, loss on debt extinguishment, and acquisition-related items of $2.1 billion and a decrease in
certain litigation payments of $469 million, partially offset by an increase in cash paid for incomes taxes and interest of $747
million and $688 million, respectively. The increase in cash paid for income taxes was primarily a result of the settlement payments
made for the resolution of the Kyphon acquisition-related matters, internal reorganization of the ownership of certain legacy
Covidien businesses, and the impacts from the full year of Covidien results. The increase in cash paid for interest was primarily
the result of a full year of interest payments on the Senior Notes and Term Loan issued in fiscal year 2015 primarily to fund the
$16 billion cash consideration portion of the Covidien acquisition, as well as the interest payments on the outstanding debt assumed
as part of the Covidien acquisition. Net cash provided by operating activities was further offset by the impact of a full year of
operations post-Covidien acquisition.
Our net cash provided by operating activities was $4.9 billion for the fiscal year ended April 24, 2015 compared to $5.0 billion
provided in the fiscal year ended April 25, 2014. The slight year-over-year decrease is primarily the result of certain Covidien
acquisition impacts, including acquisition-related items, accrued liabilities, and deferred income taxes, offset by the $750 million
settlement payment made to Edwards in May 2014.
Investing Activities Our net cash provided by investing activities was $2.2 billion for the fiscal year ended April 29, 2016
compared to $17.1 billion used in the prior year. The $19.3 billion increase was primarily attributable to higher levels of cash used
in the prior year for acquisitions, primarily related to the Covidien acquisition, as well as an increase in net proceeds from purchases
and sales and maturities of marketable securities in the current fiscal year.
Our net cash used in investing activities was $17.1 billion for the fiscal year ended April 24, 2015 compared to $3.6 billion used
in the fiscal year ended April 25, 2014. The $13.5 billion increase was primarily attributable to higher levels of cash used in fiscal
year ended April 24, 2015 for acquisitions, primarily related to the Covidien acquisition, partially offset by a decrease in net
purchases and sales and maturities of marketable securities.
Financing Activities Our net cash used in financing activities was $9.5 billion for the fiscal year ended April 29, 2016 compared
to $15.9 billion provided in the prior year. The $25.5 billion decrease primarily resulted from a net decrease in debt issued, primarily
related to the Covidien acquisition, higher payments of maturing and extinguished long-term debt, an increase in cash paid for
dividends to shareholders, and an increase in repurchases of ordinary shares.
Our net cash provided by financing activities was $15.9 billion for the fiscal year ended April 24, 2015 compared to $918 million
used in the fiscal year ended April 25, 2014. The $16.9 billion increase primarily resulted from a net increase in issuances of long-
term debt, primarily related to the Covidien acquisition, net of payments on long-term debt and short-term borrowings, partially
offset by a decrease in net issuance and repurchases of ordinary shares.