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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
3 Months Ended
Apr. 01, 2018
Apr. 02, 2017
Operating Activities    
Net income before allocation to noncontrolling interests [1],[2],[3] $ 3,570 $ 3,130
Adjustments to reconcile net income before allocation to noncontrolling interests to net cash provided by operating activities:    
Depreciation and amortization [1] 1,567 1,555
Asset write-offs and impairments [1] 7 35
Loss on sale of HIS net assets [1],[4] 3 37
TCJA impact [1],[5] (68) 0
Deferred taxes from continuing operations [1] 294 38
Share-based compensation expense [1] 182 218
Benefit plan contributions in excess of expense [1] (692) (986)
Other adjustments, net [1] (164) (225)
Other changes in assets and liabilities, net of acquisitions and divestitures [1] (2,715) (2,217)
Net cash provided by operating activities [1] 1,983 1,584
Investing Activities    
Purchases of property, plant and equipment [1] (386) (358)
Purchases of short-term investments [1] (913) (701)
Proceeds from redemptions/sales of short-term investments [1] 6,463 2,232
Net proceeds from redemptions/sales of short-term investments with original maturities of three months or less [1] 4,507 3,778
Purchases of long-term investments [1] (605) (740)
Proceeds from redemptions/sales of long-term investments [1] 576 844
Acquisitions of businesses, net of cash acquired [1] 0 (585)
Other investing activities, net [1] 25 297
Net cash provided by investing activities [1] 9,667 4,768
Financing Activities    
Proceeds from short-term borrowings [1] 428 2,554
Principal payments on short-term borrowings [1] (2,493) (2,519)
Net payments on short-term borrowings with original maturities of three months or less [1] (83) (2,110)
Proceeds from issuance of long-term debt [1] 0 5,273
Principal payments on long-term debt [1] (355) (1,253)
Purchases of common stock [1] (6,063) (5,000)
Cash dividends paid [1] (2,032) (1,945)
Proceeds from exercise of stock options [1] 372 313
Other financing activities, net [1] (495) (220)
Net cash used in financing activities [1] (10,720) (4,907)
Effect of exchange-rate changes on cash and cash equivalents and restricted cash and cash equivalents [1] 55 21
Net increase in cash and cash equivalents and restricted cash and cash equivalents [1] 985 1,465
Cash and cash equivalents, and restricted cash and cash equivalents, beginning [1] 1,431 2,666
Cash and cash equivalents and restricted cash and cash equivalents, end [1] 2,416 4,131
Non-cash transactions:    
Receipt of ICU Medical common stock [1],[6] 0 428
Promissory note from ICU Medical [1],[6] 0 75
Cash paid during the period for:    
Income taxes [1] 257 195
Interest [1] 259 216
Interest rate hedges [1] $ 20 $ 32
[1] Amounts may not add due to rounding.
[2] Amounts may not add due to rounding.
[3] Amounts may not add due to rounding.
[4] In the first quarter of 2018 and 2017, represents an incremental charge to amounts previously recorded in 2016 to write down the HIS net assets to fair value less costs to sell related to the sale of HIS net assets to ICU Medical on February 3, 2017. For additional information, see Note 2B.
[5] As a result of the enactment of the TCJA in December 2017, Pfizer’s 2018 Provision for taxes on income was favorably impacted by approximately $68 million, primarily related to certain tax initiatives associated with the lower U.S. tax rate as a result of the TCJA.
[6] In connection with the sale of the HIS net assets to ICU Medical, on February 3, 2017, Pfizer received 3.2 million newly issued shares of ICU Medical common stock initially valued at $428 million and a promissory note in the amount of $75 million, which was repaid in full as of December 31, 2017. For additional information, see Note 2B. Acquisition, Sale of Hospira Infusion Systems Net Assets, Licensing Arrangement and Collaborative Arrangements: Sale of Hospira Infusion Systems Net Assets to ICU Medical, Inc. (EH).