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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
6 Months Ended
Jul. 01, 2018
Jul. 02, 2017
Operating Activities    
Net income before allocation to noncontrolling interests [1],[2],[3] $ 7,449 $ 6,208
Adjustments to reconcile net income before allocation to noncontrolling interests to net cash provided by operating activities:    
Depreciation and amortization [1] 3,129 3,129
Asset write-offs and impairments [1] 41 97
Adjustments to loss on sale of HIS net assets [1],[4] 1 64
TCJA impact [1],[5] (68) 0
Deferred taxes from continuing operations [1] (500) 320
Share-based compensation expense [1] 379 388
Benefit plan contributions in excess of expense [1] (826) (1,079)
Other adjustments, net [1] (523) (458)
Other changes in assets and liabilities, net of acquisitions and divestitures [1] (3,250) (3,844)
Net cash provided by operating activities [1] 5,830 4,824
Investing Activities    
Purchases of property, plant and equipment [1] (810) (806)
Purchases of short-term investments [1] (3,122) (2,394)
Proceeds from redemptions/sales of short-term investments [1] 10,497 3,517
Net proceeds from redemptions/sales of short-term investments with original maturities of three months or less [1] 1,231 3,424
Purchases of long-term investments [1] (1,070) (1,663)
Proceeds from redemptions/sales of long-term investments [1] 1,361 1,538
Acquisitions of businesses, net of cash acquired [1] 0 (1,000)
Acquisitions of intangible assets [1] (32) (41)
Other investing activities, net [1] 138 455
Net cash provided by investing activities [1] 8,193 3,030
Financing Activities    
Proceeds from short-term borrowings [1] 1,746 4,799
Principal payments on short-term borrowings [1] (2,921) (5,088)
Net proceeds from short-term borrowings with original maturities of three months or less [1] 2,092 265
Proceeds from issuance of long-term debt [1] 0 5,273
Principal payments on long-term debt [1] (3,104) (4,473)
Purchases of common stock [1] (6,063) (5,000)
Cash dividends paid [1] (4,021) (3,855)
Proceeds from exercise of stock options [1] 474 411
Other financing activities, net [1] (831) (228)
Net cash used in financing activities [1] (12,628) (7,896)
Effect of exchange-rate changes on cash and cash equivalents and restricted cash and cash equivalents [1] (15) 37
Net increase/(decrease) in cash and cash equivalents and restricted cash and cash equivalents [1] 1,381 (5)
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] 2,811 2,661
Non-cash transactions:    
Receipt of ICU Medical common stock [1],[6] 0 428
Promissory note from ICU Medical [1],[6] 0 75
Equity investment in Allogene received in exchange for Pfizer's allogeneic CAR T developmental program assets [1],[6] 92 0
Cash paid (received) during the period for:    
Income taxes [1] 1,197 1,121
Interest [1] 724 881
Interest rate hedges [1] $ (71) $ (226)
[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 second quarter and first six months of 2018 and 2017, represents adjustments 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] For additional information, see Note 2B. Acquisition, Divestitures, Licensing Arrangements, Collaborative Arrangements and Privately Held Investment: Divestitures.