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Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Cash flows from operating activities      
Net income $ 5,595 $ 5,017 $ 5,580
Adjustments to net income:      
Depreciation 733 708 590
Amortization of acquisition-related intangibles 198 288 318
Amortization of capitalized software 61 54 46
Stock compensation 224 217 232
Gains on sales of assets (4) (23) (3)
Deferred taxes (137) 81 (105)
Increase (decrease) from changes in:      
Accounts receivable (340) 133 71
Inventories 46 216 (282)
Prepaid expenses and other current assets (79) 265 669
Accounts payable and accrued expenses 63 (93) (7)
Accrued compensation 63 (15) (7)
Income taxes payable (181) (193) 158
Changes in funded status of retirement plans (9) 29 36
Other (94) (35) (107)
Cash flows from operating activities 6,139 6,649 7,189
Cash flows from investing activities      
Capital expenditures (649) (847) (1,131)
Proceeds from asset sales 4 30 9
Purchases of short-term investments (5,786) (3,444) (5,641)
Proceeds from short-term investments 5,545 2,309 6,708
Other (36) 32 (23)
Cash flows from investing activities (922) (1,920) (78)
Cash flows from financing activities      
Proceeds from issuance of long-term debt 1,498 1,491 1,500
Repayment of debt (500) (750) (500)
Dividends paid (3,426) (3,008) (2,555)
Stock repurchases (2,553) (2,960) (5,100)
Proceeds from common stock transactions [1] 470 539 373
Other (36) (42) (47)
Cash flows from financing activities (4,547) (4,730) (6,329)
Net change in cash and cash equivalents 670 (1) 782
Cash and cash equivalents at beginning of period 2,437 2,438 1,656
Cash and cash equivalents at end of period $ 3,107 $ 2,437 $ 2,438
[1] Net of taxes paid for employee shares withheld of $53 million, $52 million and $60 million in 2020, 2019 and 2018, respectively.