Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Fiserv Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income	1,403)	975)	914)	1,187)	1,246)
Adjustment for discontinued operations	—)	—)	—)	—)	(14)
Depreciation and other amortization	1,158)	1,077)	615)	382)	274)
Amortization of acquisition-related intangible assets	2,038)	2,133)	1,036)	163)	159)
Amortization of financing costs, debt discounts and other	52)	47)	127)	11)	—)
Net foreign currency gain on financing activities	—)	—)	(50)	—)	—)
Share-based compensation	239)	369)	229)	73)	63)
Deferred income taxes	(262)	71)	47)	133)	(247)
Gain on sale of businesses	—)	(464)	(15)	(227)	(10)
Income from investments in unconsolidated affiliates	(100)	—)	(29)	(10)	(32)
Distributions from unconsolidated affiliates	34)	42)	23)	2)	45)
Settlement of interest rate hedge contracts	—)	—)	(183)	—)	—)
Non-cash impairment charges	15)	124)	48)	3)	18)
Other operating activities	(48)	(16)	(3)	4)	(4)
Trade accounts receivable	(358)	320)	(7)	(108)	(75)
Prepaid expenses and other assets	(248)	(167)	(82)	(6)	(55)
Contract costs	(269)	(289)	(212)	(137)	—)
Accounts payable and other liabilities	303)	(146)	238)	116)	54)
Contract liabilities	77)	71)	99)	(34)	61)
Changes in assets and liabilities, net of effects from acquisitions and dispositions	(495)	(211)	36)	(169)	(15)
Adjustments to reconcile net income to net cash provided by operating activities	2,631)	3,172)	1,881)	365)	251)
Net cash provided by operating activities	4,034)	4,147)	2,795)	1,552)	1,483)
Capital expenditures, including capitalized software and other intangibles	(1,160)	(900)	(721)	(360)	(287)
Proceeds from sale of businesses	—)	579)	51)	419)	17)
Payments for acquisitions of businesses, net of cash acquired and including working capital adjustments	(848)	(139)	(16,005)	(712)	(384)
Distributions from unconsolidated affiliates	115)	109)	113)	—)	—)
Purchases of investments	(256)	(1)	(45)	(3)	(10)
Proceeds from sale of investments	519)	11)	—)	—)	—)
Other investing activities	—)	—)	5)	(7)	7)
Net cash used in investing activities	(1,630)	(341)	(16,602)	(663)	(657)
Debt proceeds	6,435)	8,897)	20,030)	5,039)	2,310)
Debt repayments	(7,881)	(10,918)	(5,043)	(4,005)	(1,985)
Net proceeds from (repayments of) commercial paper and short-term borrowings	1,741)	(6)	—)	—)	—)
Payments of debt financing, redemption and other costs	—)	(16)	(247)	—)	—)
Proceeds from issuance of treasury stock	140)	133)	156)	75)	78)
Purchases of treasury stock, including employee shares withheld for tax obligations	(2,786)	(1,826)	(561)	(1,946)	(1,223)
Settlement activity, net	711)	—)	—)	—)	—)
Distributions paid to noncontrolling interests and redeemable noncontrolling interests	(62)	(104)	(118)	—)	—)
Payments of acquisition-related contingent consideration	(37)	(18)	(13)	—)	—)
Other financing activities	(2)	22)	(13)	(5)	—)
Net cash provided by (used in) financing activities	(1,741)	(3,836)	14,191)	(842)	(820)
Net cash provided by (used in) operating activities	—)	—)	—)	(7)	19)
Net cash provided by investing activities	—)	—)	133)	50)	—)
Net cash flows from discontinued operations	—)	—)	133)	43)	19)
Effect of exchange rate changes on cash and cash equivalents	(27)	16)	1)	—)	—)
Net change in cash and cash equivalents	636)	(14)	518)	90)	25)
Cash and cash equivalents, beginning balance	2,569)	933)	415)	325)	300)
Cash and cash equivalents, ending balance	3,205)	919)	933)	415)	325)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Net Income: Net income demonstrated variability over the five-year period, initiating at 1,246 million USD in 2017, decreasing steadily until 2019 to 914 million USD, then recovering to reach 1,403 million USD in 2021. The dip observed in 2019 suggests potential operational challenges or increased expenses during that period, with a significant recovery by 2021.
Depreciation and Amortization: Depreciation and other amortization expenses showed a substantial upward trend, increasing from 274 million USD in 2017 to 1,158 million USD in 2021. Notably, amortization of acquisition-related intangible assets sharply rose from 159 million USD in 2017 to over 2,038 million USD in 2021, indicating increased acquisition activities or capitalized intangible asset amortization over this period.
Share-Based Compensation: Share-based compensation escalated significantly between 2017 and 2020, peaking at 369 million USD before declining to 239 million USD in 2021, suggesting fluctuations in compensation policy or equity incentive costs.
Deferred Income Taxes: Deferred income taxes fluctuated significantly, with a marked negative value in 2021 (-262 million USD) following positive amounts in earlier years, indicating changing tax positions or timing differences affecting tax expense recognition.
Non-cash Impairment Charges: Impairment charges remained relatively modest, peaking at 124 million USD in 2020 before dropping to 15 million USD in 2021, signaling isolated asset write-downs during 2020.
Trade Accounts Receivable and Prepaid Expenses: Trade accounts receivable showed volatility, ending with a significant negative change (-358 million USD) in 2021. Prepaid expenses and other assets consistently increased in outflow terms, peaking at -248 million USD in 2021, which may reflect changes in working capital management.
Contract Costs and Liabilities: Contract costs consistently increased (more negative) through the years, indicating higher investment or recognition of contract acquisition costs. Contract liabilities fluctuated but generally remained positive, suggesting deferred revenue or advances received.
Operating Cash Flow: Net cash provided by operating activities increased steadily from 1,483 million USD in 2017 to over 4,000 million USD in 2020 and 2021, signaling strong cash generation from core operations despite fluctuations in net income.
Capital Expenditures: Capital expenditures, including software and intangible assets, trended upward from 287 million USD in 2017 to 1,160 million USD in 2021, reflecting increasing investments in property, software, or technology assets.
Investing Activities: Payments for acquisitions exhibited extraordinary volatility, with a notable spike to -16,005 million USD in 2019, indicative of substantial acquisition activity that year, followed by smaller outflows in other years. Net cash used in investing activities was heavily negative in 2019 due to these acquisitions, but relatively modest in the other years.
Financing Activities: Debt proceeds and repayments were both substantial, with notable peaks in 2019 (20,030 million USD proceeds) and significant repayments in 2020 (10,918 million USD). Net cash from financing activities was positive in 2019, aligned with the large debt issuance, while 2020 and 2021 were negative, indicating debt reduction efforts. Treasury stock purchases increased markedly, peaking at 2,786 million USD in 2021, suggesting active share repurchases.
Cash Balance: Cash and cash equivalents increased significantly from 325 million USD in 2017 to 3,205 million USD in 2021, supported by strong operating cash flows and financing activity liquidity management, despite substantial investing outflows related to acquisitions and capital expenditure.
Overall Insights: The financial data reflects a company actively engaged in acquisitions, as shown by significant amortization of acquisition-related intangibles and acquisition payments, especially in 2019. Operational cash flow strength offsets substantial investment outflows, maintaining liquidity growth. Increasing capital expenditure and share repurchases indicate a focus on both growth and returning value to shareholders. Fluctuations in net income and deferred tax positions suggest volatility in earnings components, but strong cash flow generation indicates operational resilience.

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Fiserv Inc. (NASDAQ:FISV)

Cash Flow Statement