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CONSOLIDATED STATEMENTS OF CASH FLOWS
$ in Millions
12 Months Ended
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Operating Activities      
Net income before allocation to noncontrolling interests $ 1,500 $ 1,424 $ 862
Adjustments to reconcile net income before noncontrolling interests to net cash provided by/(used in) operating activities      
Depreciation and amortization expense 412 [1],[2] 308 [1],[2] 242 [1],[2]
Share-based compensation expense 67 53 44
Asset write-offs and asset impairments 7 4 3
Net (gain)/loss on sales of assets (20) (42) 11
Provision for losses on inventory 68 54 54
Deferred taxes(a) (79) [3] (112) [3] 127 [3]
Employee benefit plan contribution from Pfizer Inc. 3 3 3
Other non-cash adjustments (12) (14) 10
Other changes in assets and liabilities, net of acquisitions and divestitures      
Accounts receivable (69) (67) (50)
Inventories (104) 61 19
Other assets (51) (42) (16)
Accounts payable (10) 37 (10)
Other liabilities 91 56 (38)
Other tax accounts, net (8) 67 85
Net cash provided by operating activities 1,795 1,790 1,346
Investing Activities      
Capital expenditures (460) (338) (224)
Acquisition of Abaxis, net of cash acquired 0 (1,884) 0
Other acquisitions (195) (114) (82)
Net proceeds from sales of assets 21 56 37
Proceeds from maturities and redemptions of investments 101 28 0
Net proceeds on swaps designated as net investment hedges 37 0 0
Other investing activities (8) (7) (1)
Net cash used in investing activities (504) (2,259) (270)
Financing Activities      
(Decrease)/increase in short-term borrowings, net (9) 8 0
Principal payments on long-term debt 0 0 (750)
Proceeds from issuance of long-term debt—senior notes, net of discount and fees 0 1,485 1,231
Payment of contingent consideration related to previously acquired assets (9) (12) (7)
Share-based compensation-related proceeds, net of taxes paid on withholding shares and excess tax benefits 7 19 24
Purchases of treasury stock (626) (698) (500)
Cash dividends paid (314) (243) (206)
Acquisition of a noncontrolling interest 0 (26) (43)
Net cash (used in)/provided by financing activities (951) 533 (251)
Effect of exchange-rate changes on cash and cash equivalents (8) (26) 12
Net increase in cash and cash equivalents 332 38 837
Cash and cash equivalents at beginning of period 1,934 [4] 1,602 [4] 1,564
Cash paid during the period for:      
Income taxes 418 336 455
Interest, net of capitalized interest 247 190 167
Non-cash transactions:      
Capital expenditures 7 7 5
Contingent purchase price consideration 23 0 29
Dividends payable $ 95 $ 79 $ 61
[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] eflects the reclassification of the one-time 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 December 31, 2019 and December 31, 2018, includes $2 million and $5 million, respectively, of restricted cash.