BRISTOL-MYERS SQUIBB COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS Dollars in Millions Year Ended December 31, 2019 2018 2017 Cash Flows From Operating Activities: Net earnings $ 3,460 $ 4,947 $ 975 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization, net 1,746 637 789 Deferred income taxes (924 ) 45 453 Stock-based compensation 441 221 199 Impairment charges 199 126 327 Pension settlements and amortization 1,688 186 236 Divestiture gains and royalties (1,855 ) (992 ) (706 ) Asset acquisition charges 25 85 760 Equity investment (gains)/losses (279 ) 512 (23 ) Contingent consideration fair value adjustments 523 — — Other adjustments (22 ) (44 ) 120 Changes in operating assets and liabilities: Receivables 752 (429 ) (431 ) Inventories 463 (216) (29) Accounts payable 229 (59 ) 320 Deferred income 12 84 (642) Income taxes payable 907 203 3,154 Other 702 634 (227) Net Cash Provided by Operating Activities 8,067 5,940 5,275 Cash Flows From Investing Activities: Sale and maturities of marketable debt securities 3,809 2,379 6,398 Purchase of marketable debt securities (3,961) (2,305) (5,419) Capital expenditures (836 ) (951 ) (1,055 ) Divestiture and other proceeds 15,852 1,249 736 Acquisition and other payments, net of cash acquired (24,634 ) (1,246 ) (726 ) Net Cash Used in Investing Activities (9,770) (874) (66) Cash Flows From Financing Activities: Short-term debt obligations, net 131 (543) 727 Issuance of long-term debt 26,778 — 1,488 Repayment of long-term debt (9,256) (5) (1,224) Repurchase of common stock (7,300 ) (320 ) (2,469 ) Dividends (2,679) (2,613) (2,577) Other (53 ) (54 ) (22 ) Net Cash Provided by/(Used in) Financing Activities 7,621 (3,535) (4,077) Effect of Exchange Rates on Cash, Cash Equivalents and Restricted Cash (9 ) (41 ) 52 Increase in Cash, Cash Equivalents and Restricted Cash 5,909 1,490 1,184 Cash, Cash Equivalents and Restricted Cash at Beginning of Year 6,911 5,421 4,237 Cash, Cash Equivalents and Restricted Cash at End of Year $ 12,820 $ 6,911 $ 5,421 The accompanying notes are an integral part of these consolidated financial statements. 60