Name: Fiserv Inc. (NASDAQ:FISV) | Cash Flow Statement
Creator: Stock Analysis on Net

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.

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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).

The financial trajectory between 2017 and 2021 is characterized by a substantial expansion in operating cash flows, a pivotal large-scale acquisition in 2019, and a consistent strategy of shareholder returns through treasury stock purchases.

Operating Cash Flow Dynamics: Net cash provided by operating activities exhibited a strong upward trend, growing from 1,483 million in 2017 to 4,034 million in 2021. This growth significantly outpaced the growth in net income, which remained relatively volatile, peaking at 1,403 million in 2021. The divergence is primarily driven by a sharp increase in non-cash charges. Amortization of acquisition-related intangible assets rose from 159 million in 2017 to 2,038 million in 2021, while depreciation and other amortization grew from 274 million to 1,158 million over the same period.
Investing Activities and Strategic Expansion: Investing activities were dominated by a massive capital deployment in 2019, with payments for business acquisitions totaling 16,005 million. Aside from this outlier, capital expenditures—including capitalized software and other intangibles—showed a steady year-over-year increase, rising from 287 million in 2017 to 1,160 million in 2021, indicating a consistent commitment to infrastructure and product development.
Financing and Capital Structure: The company utilized significant debt markets to fund its 2019 expansion, with debt proceeds reaching 20,030 million in that year. This was followed by a period of aggressive debt reduction, notably in 2020 when debt repayments totaled 10,918 million. Throughout the five-year period, there was a persistent trend of returning capital to shareholders; purchases of treasury stock increased from 1,223 million in 2017 to 2,786 million in 2021.
Liquidity and Cash Position: The ending cash and cash equivalents balance demonstrated a marked increase, moving from 325 million in 2017 to 3,205 million in 2021. This represents a significant strengthening of the liquidity position, supported by the high volume of cash generated from operations despite the heavy investing and financing outflows.

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