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, 2017
Dec. 31, 2016
Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES      
Consolidated net income $ 994 $ 1,456 $ 1,470
Adjustments to reconcile consolidated net income to net cash provided by operating activities      
Impact of tax legislation, net (Note 2) 820 0 0
Depreciation and amortization 583 530 514
Gains on fair value adjustment for consolidated investees (Note 18) 0 (15) (18)
Deferred income taxes (Note 2) (54) 50 (108)
Equity in income of investees, net of dividends (Note 3) (123) (46) (36)
Pension contributions in excess of expense (Note 10) (161) (92) (127)
Other post retirement benefits payments in excess of expense (Note 10) (5) (25) (23)
Stock-based compensation expense (Note 15) 41 32 24
Loss contingency charges, net of payments (Note 12) 5 122 60
Impairment of light-duty diesel assets (Note 19) 0 0 211 [1],[2]
Restructuring charges and other actions, net of cash payments (Note 20) 0 (59) 64
Proceeds from corporate owned life insurance (52) (22) 6
Translation and hedging activities 71 (55) 26
Changes in current assets and liabilities, net of acquisitions      
Accounts and notes receivable (508) (265) 103
Inventories (407) (4) 150
Other current assets (12) 14 (151)
Accounts Payable 639 188 (130)
Accrued Expenses 378 (195) (226)
Changes in other liabilities and deferred revenue 241 200 292
Other, net (173) 125 (36)
Net cash provided by operating activities 2,277 1,939 2,065
CASH FLOWS FROM INVESTING ACTIVITIES      
Capital expenditures (506) (531) (744)
Investments in internal use software (81) (63) (55)
Proceeds from disposals of property, plant and equipment 110 14 25
Investments in and advances to equity investees (66) (41) (7)
Acquisitions of businesses, net of cash acquired (Note 18) (662) (94) (117)
Investments in marketable securities—acquisitions (Note 4) (194) (478) (282)
Investments in marketable securities—liquidations (Note 4) 266 306 270
Proceeds from sale of equity investees (Note 3) 0 60 0
Cash flows from derivatives not designated as hedges 76 (102) 8
Other, net 5 12 (16)
Net cash used in investing activities (1,052) (917) (918)
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from borrowings 6 111 44
Net borrowings of commercial paper 86 212 0
Payments on borrowings and capital lease obligations (60) (163) (76)
Net borrowings (payments) under short-term credit agreements 12 19 (41)
Distributions to noncontrolling interests (29) (65) (49)
Dividend payments on common stock (Note 13) (701) (676) (622)
Repurchases of common stock (Note 13) (451) (778) (900)
Acquisitions of noncontrolling interests (Note 18) 0 (98) (10)
Other, net 63 25 4
Net cash used in financing activities (1,074) (1,413) (1,650)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 98 (200) (87)
Net increase (decrease) in cash and cash equivalents 249 (591) (590)
Cash and cash equivalents at beginning of year 1,120 1,711 2,301
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,369 $ 1,120 $ 1,711
[1] Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount and deferred costs that are included in the Consolidated Statements of Income as "Interest expense." The amortization of debt discount and deferred costs were $3 million, $3 million and $3 million for the years ended December 31, 2017, 2016 and 2015, respectively.
[2] See Note 19, "IMPAIRMENT OF LIGHT-DUTY DIESEL ASSETS," for additional information.