Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Baxter International Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Net income	968)	2,497)	2,012)	2,326)	2,256)
Income from discontinued operations, net of tax	(575)	—)	—)	—)	—)
Depreciation and amortization	759)	1,005)	823)	712)	670)
Deferred income taxes	(50)	(78)	(224)	(17)	172)
Stock compensation	126)	159)	150)	130)	119)
Realized excess tax benefits from stock issued under employee benefit plans	(7)	(24)	(34)	(24)	(21)
Business optimization charges	130)	27)	282)	150)	192)
Asset impairment and other charges	—)	—)	—)	—)	182)
Net periodic pension benefit and OPEB costs	227)	275)	381)	477)	255)
Gain on sale of discontinued operations	—)	(466)	—)	—)	—)
Infusion pump and other product-related charges	(28)	93)	17)	—)	—)
(Gains) losses related to contingent payment liabilities	—)	122)	(17)	(108)	—)
Other, net	(105)	269)	54)	66)	32)
Accounts and other current receivables, net	(4)	(125)	(36)	(41)	(229)
Inventories	(118)	(439)	(311)	(129)	(315)
Accounts payable and accrued liabilities	236)	115)	329)	18)	98)
Business optimization and infusion pump payments	(112)	(161)	(125)	(283)	(347)
Other, net	(318)	(54)	(103)	(171)	(247)
Changes in balance sheet items	(316)	(664)	(246)	(606)	(1,040)
Adjustments to reconcile income from continuing operations to net cash from operating activities	161)	718)	1,186)	780)	561)
Cash flows from operations	1,129)	3,215)	3,198)	3,106)	2,817)
Capital expenditures	(911)	(1,898)	(1,525)	(1,161)	(960)
Acquisitions and investments, net of cash acquired	(34)	(409)	(3,851)	(515)	(590)
Divestitures and other investing activities	84)	765)	14)	107)	123)
Cash flows from investing activities	(861)	(1,542)	(5,362)	(1,569)	(1,427)
Issuances of debt	6,868)	41)	3,636)	1,037)	506)
Payments of obligations	(3,776)	(1,029)	(540)	(22)	(23)
Increase (decrease) in debt with original maturities of three months or less, net	(575)	875)	—)	(250)	250)
Transfer of cash and equivalents to Baxalta	(2,122)	—)	—)	—)	—)
Cash dividends on common stock	(910)	(1,095)	(1,023)	(804)	(709)
Proceeds and realized excess tax benefits from stock issued under employee benefit plans	200)	369)	508)	512)	448)
Purchases of treasury stock	—)	(550)	(913)	(1,480)	(1,583)
Other	(42)	(13)	(23)	(108)	(26)
Cash flows from financing activities	(357)	(1,402)	1,645)	(1,115)	(1,137)
Cash flows from operations, discontinued operations	518)	—)	—)	—)	—)
Cash flows from investing activities, discontinued operations	(946)	—)	—)	—)	—)
Cash flows from discontinued operations	(428)	—)	—)	—)	—)
Effect of foreign exchange rate changes on cash and equivalents	(195)	(79)	(18)	(57)	(33)
Increase (decrease) in cash and equivalents	(712)	192)	(537)	365)	220)
Cash and equivalents at beginning of year	2,925)	2,733)	3,270)	2,905)	2,685)
Cash and equivalents at end of year	2,213)	2,925)	2,733)	3,270)	2,905)

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

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Cash flow statement item	Description	The company
Cash flows from operations	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	Baxter International Inc. cash flows from operations increased from 2013 to 2014 but then decreased significantly from 2014 to 2015.
Cash flows from investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	Baxter International Inc. cash flows from investing activities increased from 2013 to 2014 and from 2014 to 2015.
Cash flows from financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	Baxter International Inc. cash flows from financing activities decreased from 2013 to 2014 but then slightly increased from 2014 to 2015.

Baxter International Inc. (NYSE:BAX)

Cash Flow Statement