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Allergan PLC (NYSE:AGN)
Cash Flow from Operations
$5,224 Mil (TTM As of Mar. 2016)

Cash flow from operations refers to the cash brought in through a company’'s normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

For the three months ended in Mar. 2016, Allergan PLC's Net Income From Continuing Operations was $256 Mil. Its DDA was $1,634 Mil. Its Change In Working Capital was $-358 Mil. Its cash flow from deferred tax was $-519 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $99 Mil. And its Cash Flow from Others was $106 Mil. In all, Allergan PLC's Cash Flow from Operations for the three months ended in Mar. 2016 was $1,219 Mil.


Definition

Cash flow from operations refers to the cash brought in through a company’'s normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

Allergan PLC's Cash Flow from Operations for the fiscal year that ended in Dec. 2015 is calculated as:

Allergan PLC's Cash Flow from Operations for the quarter that ended in Mar. 2016 is

Allergan PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was 1401.3 (Jun. 2015 ) + 1048.2 (Sep. 2015 ) + 1555.5 (Dec. 2015 ) + 1218.5 (Mar. 2016 ) = $5,224 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Cash flow from operations contains six items:

1. Net Income From Continuing Operations:
Net Income From Continuing Operations indicates the net income that a firm brings in from ongoing business activities. These activities are expected to continue into the next reporting period. It excludes extraordinary items, income from the cumulative effects of accounting changes, non-recurring items, income from tax loss carry forward, and preferred dividends.

Allergan PLC's net income from continuing operations for the three months ended in Mar. 2016 was $256 Mil.

2. Depreciation, Depletion and Amortization:
Depreciation is a present expense that accounts for the past cost of an asset that is now providing benefits.
Depletion and amortization are synonyms for depreciation.
Generally:
• The term “depreciation” is used when discussing man made tangible assets
• The term “depletion” is used when discussing natural tangible assets
• The term “amortization” is used when discussing intangible assets

Allergan PLC's depreciation, depletion and amortization for the three months ended in Mar. 2016 was $1,634 Mil.

3. Change In Working Capital:
Working Capital is a measure of a company's short term liquidity or its ability to cover short term liabilities. It is defined as the difference between a company's current assets and current liabilities. Changes in Working Capital is reported in the cash flow statement since it is one of the major ways in which net income can differ from operating cash flow.

Allergan PLC's change in working capital for the three months ended in Mar. 2016 was $-358 Mil. It means Allergan PLC's working capital declined by $358 Mil from Dec. 2015 to Mar. 2016 .

4. Deferred Tax:
It is the cash flow generated from deferred tax.

Allergan PLC's cash flow from deferred tax for the three months ended in Mar. 2016 was $-519 Mil.

5. Cash Flow from Discontinued Operations:
Cash received by a company that comes from the sale of part of business.

Allergan PLC's cash flow from discontinued operations for the three months ended in Mar. 2016 was $0 Mil.

6. Stock Based Compensation:
It is a way corporations use stock options to reward employees. It provides executives and employees the opportunity to share in the growth of the company and, if structured properly, can align their interests with the interests of the company's shareholders and investors, without burning the company's cash on hand.

Allergan PLC's stock based compensation for the three months ended in Mar. 2016 was $99 Mil.

7. Cash Flow from Others:
These are cash differences caused by the change of inventory, accounts payable, accounts receivable etc. For instance, if a company pays its suppliers slower, its cash position will build up faster. If a company receives payments from its customers slower, its account receivables will rise, and its cash position will grow more slowly (or even shrink).

Allergan PLC's cash flow from others for the three months ended in Mar. 2016 was $106 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, Stock Based Compensation, Cash Flow from Others, Cash Flow from Investing


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Allergan PLC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations -44514123822218325998-751-1,6303,919
CF_DDA 2182541711892824485791,0452,8285,995
ChangeInWorkingCapital 116-18-37-8489-114-36-164-432-1,272
CF_DeferredTax -25-64-19-118-127-221-275-690-7,380
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0141919244049134368690
Cash Flow from Others 6064223491121271971,2251,7992,577
Cash Flow from Operations 4714274173775716326661,2142,2434,530

Allergan PLC Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
NetIncomeFromContinuingOperations -1489749-1,043-733-512-2425,303-629256
CF_DDA 4434804729389389831,7491,6451,6191,634
ChangeInWorkingCapital 98-122-241-9122-422-783152-219-358
CF_DeferredTax -105-150-2-261-278-304-285-6,88291-519
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 58171522810922617511018099
Cash Flow from Others 307119176751753556787720515106
Cash Flow from Operations 6524404705228125251,4011,0481,5561,219
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