2019 Integrated Annual Report
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financial statements

Condensed Consolidated Statements of Cash Flows

Years ended June 30
Dollars in millions
2019 2018 2017
(As Adjusted*) (As Adjusted*)
Operating activities:
Net earnings $820 $823 $701
Deduct: Losses from discontinued operations, net of tax (2)
Earnings from continuing operations 820 823 703
Adjustments to reconcile earnings from continuing operations to net cash
provided by continuing operations:
Depreciation and amortization 180 166 163
Stock-based compensation 43 53 51
Deferred income taxes (20) (23) (35)
Other (29) 44 33
Changes in:
Receivables, net (32) (24) (1)
Inventories, net (7) (21) (19)
Prepaid expenses and other current assets (6) 4 (5)
Accounts payable and accrued liabilities 17 (47) (34)
Income taxes payable/receivable, net 26 1 12
Net cash provided by continuing operations 992 976 868
Net cash used for discontinued operations (3)
Net cash provided by operations 992 976 865
Investing activities:
Capital expenditures (206) (194) (231)
Businesses acquired, net of cash acquired (681)
Other 10 16 26
Net cash used for investing activities (196) (859) (205)
Financing activities:
Notes and loans payable, net 189 (214) (125)
Long-term debt borrowings, net of issuance costs 891
Long-term debt repayments (400)
Treasury stock purchased (661) (271) (183)
Cash dividends paid (490) (450) (412)
Issuance of common stock for employee stock plans and other 147 45 75
Net cash used for financing activities (815) (399) (645)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (2) (3) (1)
Net increase (decrease) in cash, cash equivalents and restricted cash (21) (285) 14
Cash, cash equivalents and restricted cash:
Beginning of year 134 419 405
End of year $113 $134 $419
Supplemental cash flow information:
Interest paid $87 $75 $78
Income taxes paid, net of refunds 207 245 347
Non-cash financing activities:
Cash dividends declared and accrued, but not paid 133 123 108

*Adjusted to reflect the retrospective adoption of ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” effective July 1, 2018.