Walgreens 2015 Annual Report Download - page 69

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WALGREENS BOOTS ALLIANCE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended August 31, 2015, 2014 and 2013
(In millions)
2015 2014 2013
Cash Flows from Operating Activities:
Net earnings $ 4,279 $ 2,031 $ 2,548
Adjustments to reconcile net earnings to net cash provided by operating activities -
Depreciation and amortization 1,742 1,316 1,283
Change in fair value of warrants and related amortization (779) (385) (120)
Loss on exercise of call option — 866 —
Gain on previously held equity interest (563) — —
Deferred income taxes (32) 177 202
Stock compensation expense 109 114 104
Equity earnings in Alliance Boots (315) (617) (496)
Other 728 181 113
Changes in operating assets and liabilities -
Accounts receivable, net (338) (616) (449)
Inventories 719 860 321
Other current assets 22 (10) 18
Trade accounts payable 268 (339) 182
Accrued expenses and other liabilities 170 195 424
Income taxes (335) 17 103
Other non-current assets and liabilities (11) 103 68
Net cash provided by operating activities 5,664 3,893 4,301
Cash Flows from Investing Activities:
Additions to property, plant and equipment (1,251) (1,106) (1,212)
Proceeds from sale leaseback transactions 867 67 115
Proceeds related to the sale of businesses 814 93 20
Proceeds from sale of other assets 184 139 30
Alliance Boots acquisition, net of cash acquired (4,461) — —
Other business and intangible asset acquisitions, net of cash acquired (371) (344) (630)
Purchases of short-term investments held to maturity (49) (59) (66)
Proceeds from short-term investments held to maturity 50 58 16
Investment in AmerisourceBergen — (493) (224)
Other (59) (86) (45)
Net cash used for investing activities (4,276) (1,731) (1,996)
Cash Flows from Financing Activities:
Payments of short-term borrowings, net (226) — —
Proceeds from issuance of long-term debt 12,285 — 4,000
Payments of long-term debt (10,472) (550) (4,300)
Proceeds from financing leases — 268 —
Stock purchases (1,226) (705) (615)
Proceeds related to employee stock plans 503 612 486
Cash dividends paid (1,384) (1,199) (1,040)
Other (395) (48) (27)
Net cash used for financing activities (915) (1,622) (1,496)
Effect of exchange rate changes on cash and cash equivalents (119) — —
Changes in Cash and Cash Equivalents:
Net increase in cash and cash equivalents 354 540 809
Cash and cash equivalents at beginning of period 2,646 2,106 1,297
Cash and cash equivalents at end of period $ 3,000 $ 2,646 $ 2,106
The accompanying Notes to Consolidated Financial Statements are an integral part of these Statements.
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