Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES      
Consolidated net income $ 1,456 $ 1,470 $ 1,736
Adjustments to reconcile consolidated net income to net cash provided by operating activities      
Loss contingency charges, net of payments (Note 12) 122 60 0
Depreciation and amortization 530 514 455
Gains on fair value adjustment for consolidated investees (Note 18) (15) (18) (73)
Deferred income taxes (Note 3) 50 (108) 31
Equity in income of investees, net of dividends (46) (36) (100)
Pension contributions in excess of expense (Note 8) (92) (127) (148)
Other post-retirement benefits payments in excess of expense (Note 8) (25) (23) (28)
Stock-based compensation expense (Note 15) 32 24 36
Impairment of light-duty diesel assets (Note 19) 0 211 [1],[2] 0
Restructuring charges and other actions, net of cash payments (Note 20) (59) 64 0
Translation and hedging activities (55) 26 (13)
Changes in current assets and liabilities, net of acquisitions      
Accounts and notes receivable (265) 103 (89)
Inventories (4) 150 (256)
Other current assets 14 (151) 1
Accounts Payable 184 (136) 244
Accrued Expenses (195) (226) 168
Changes in other liabilities and deferred revenue 200 292 282
Other, net 103 (30) 20
Net cash provided by operating activities 1,935 2,059 2,266
CASH FLOWS FROM INVESTING ACTIVITIES      
Capital expenditures (531) (744) (743)
Investments in internal use software (63) (55) (55)
Investments in and advances to equity investees (41) (7) (60)
Acquisitions of businesses, net of cash acquired (Note 18) (94) (117) (436)
Investments in marketable securities—acquisitions (Note 4) (478) (282) (275)
Investments in marketable securities—liquidations (Note 4) 306 270 336
Proceeds from sale of equity investees (Note 2) 60   4
Cash flows from derivatives not designated as hedges (102) 8 (14)
Other, net 26 9 9
Net cash used in investing activities (917) (918) (1,234)
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from borrowings 111 44 55
Net borrowings of commercial paper (Note 9) 212 0 0
Payments on borrowings and capital lease obligations (163) (76) (94)
Net borrowings (payments) under short-term credit agreements 19 (41) (40)
Distributions to noncontrolling interests (65) (49) (83)
Dividend payments on common stock (Note 13) (676) (622) (512)
Repurchases of common stock (Note 13) (778) (900) (670)
Acquisitions of noncontrolling interests (Note 18) (98) (10) (14)
Other, net 29 10 15
Net cash used in financing activities (1,409) (1,644) (1,343)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (200) (87) (87)
Net decrease in cash and cash equivalents (591) (590) (398)
Cash and cash equivalents at beginning of year 1,711 2,301 2,699
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,120 $ 1,711 $ 2,301
[1] Distribution segment EBIT included gains on the fair value adjustment resulting from the acquisition of controlling interests in North American distributors of $15 million, $18 million and $73 million for the years ended December 31, 2016, 2015 and 2014, respectively. See Note 18, "ACQUISITIONS," for additional information.
[2] See Note 19, "IMPAIRMENT OF LIGHT-DUTY DIESEL ASSETS," for additional information.