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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Operating Activities      
Net income before allocation to noncontrolling interests $ 1,636 $ 1,500 $ 1,424
Adjustments to reconcile net income before noncontrolling interests to net cash provided by/(used in) operating activities      
Depreciation and amortization expense [1],[2] 441 412 308
Share-based compensation expense 59 67 53
Asset write-offs and asset impairments 43 7 4
Net gain on sales of assets (19) (20) (42)
Provision for losses on inventory 105 68 54
Deferred taxes(a) [3] (62) (79) (112)
Employee benefit plan contribution from Pfizer Inc. 3 3 3
Other non-cash adjustments 11 (12) (14)
Other changes in assets and liabilities, net of acquisitions and divestitures      
Accounts receivable 74 (69) (67)
Inventories (346) (104) 61
Other assets (68) (51) (42)
Accounts payable 147 (10) 37
Other liabilities 91 91 56
Other tax accounts, net 17 (8) 67
Net cash provided by operating activities 2,126 1,795 1,790
Investing Activities      
Capital expenditures (453) (460) (338)
Acquisition of Abaxis, net of cash acquired 0 0 (1,884)
Other acquisitions (113) (195) (114)
Net proceeds from sale of assets 21 21 56
Proceeds from maturities and redemptions of investments 0 101 28
Net proceeds on swaps designated as net investment hedges (27) 37 0
Other investing activities 0 (8) (7)
Net cash used in investing activities (572) (504) (2,259)
Financing Activities      
Increase/(decrease) in short-term borrowings, net 4 (9) 8
Principal payments on long-term debt (500) 0 0
Proceeds from issuance of long-term debt—senior notes, net of discount and fees 1,240 0 1,496
Payment of contingent consideration related to previously acquired assets (2) (9) (12)
Share-based compensation-related proceeds, net of taxes paid on withholding shares and excess tax benefits 20 7 19
Purchases of treasury stock (250) (626) (698)
Cash dividends paid (380) (314) (243)
Acquisition of a noncontrolling interest, net of cash acquired 3 0 (26)
Net cash provided by/(used in) financing activities 123 (951) 533
Effect of exchange-rate changes on cash and cash equivalents (7) (8) (26)
Net increase in cash and cash equivalents 1,670 332 38
Cash and cash equivalents at beginning of period 3,604 [4] 1,934 [4] 1,602
Cash paid during the period for:      
Income taxes 418 418 336
Interest, net of capitalized interest 257 247 190
Non-cash transactions:      
Capital expenditures 3 7 7
Contingent purchase price consideration 0 23 0
Dividends payable 119 95 79
Payments to Settle Derivative Instruments (6) 0 0
Payments of Debt Issuance Costs $ (12) $ 0 $ (11)
[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] For 2018, reflects 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, 2020 and 2019, includes $2 million of restricted cash.