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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Apr. 02, 2017
Operating Activities    
Net income before allocation to noncontrolling interests $ 350 $ 239
Adjustments to reconcile net income before noncontrolling interests to net cash provided by operating activities:    
Depreciation and amortization expense [1],[2] 60 62
Share-based compensation expense 11 11
Restructuring 2 (1)
Asset Impairment Charges 2 0
Provision for losses on inventory 16 16
Deferred taxes(a) [3] (141) 24
Employee benefit plan contribution from Pfizer Inc. 1 1
Other non-cash adjustments 3 4
Other changes in assets and liabilities, net of acquisitions and divestitures    
Accounts receivable 60 (22)
Inventories (33) (52)
Other assets (2) (13)
Accounts payable (46) (37)
Other liabilities (57) (147)
Other tax accounts, net(a) [3] 163 34
Net cash provided by operating activities 389 119
Investing Activities    
Purchases of property, plant and equipment (53) (42)
Acquisitions 0 (3)
Net proceeds from sales of assets 8 0
Other investing activities 0 (3)
Net cash used in investing activities (45) (48)
Financing Activities    
Payment of contingent consideration related to previously acquired assets (12) (5)
Share-based compensation-related proceeds, net of taxes paid on withholding shares 2 6
Purchases of treasury stock (190) (125)
Cash dividends paid (62) (52)
Net cash used in financing activities (262) (176)
Effect of exchange-rate changes on cash and cash equivalents 8 7
Net increase/(decrease) in cash and cash equivalents 90 (98)
Cash and cash equivalents at beginning of period 1,564 [4] 727
Cash and cash equivalents at end of period 1,654 [4] 629
Cash paid during the period for:    
Income taxes 42 37
Interest, net of capitalized interest 70 56
Non-cash transactions:    
Purchases of property, plant and equipment 1 4
Contingent purchase price consideration [5] 0 2
Dividends Payable $ 61 $ 52
[1] Certain production facilities are shared. Depreciation and amortization is allocated to the reportable operating segments based on estimates of where the benefits of the related assets are realized.
[2] Defined as income before provision for taxes on income.
[3] Reflects the reclassification of the one-time mandatory deemed repatriation tax from Noncurrent deferred tax liabilities to Income taxes payable and Other taxes payable to properly reflect the liability, which became a fixed obligation in 2018 payable over eight years.
[4] As of both March 31, 2018, and December 31, 2017, includes $6 million of restricted cash.
[5] For 2017, relates primarily to the consolidation of a European livestock monitoring company a variable interest entity of which Zoetis is the primary beneficiary.