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.

Kraft Heinz Co., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 31, 2015
Net income (loss)	1,933)	(10,254)	10,990)	3,642)	647)
Depreciation and amortization	994)	983)	1,036)	1,337)	740)
Amortization of postretirement benefit plans prior service costs (credits)	(306)	(339)	(328)	(333)	(112)
Amortization of inventory step-up	—)	—)	—)	—)	347)
Equity award compensation expense	46)	33)	46)	46)	133)
Deferred income tax provision (benefit)	(293)	(1,967)	(6,467)	(29)	(317)
Postemployment benefit plan contributions	(32)	(76)	(1,659)	(494)	(286)
Goodwill and intangible asset impairment losses	1,899)	15,936)	49)	—)	58)
Nonmonetary currency devaluation	10)	146)	36)	24)	234)
(Gain) loss on sale of business	(420)	15)	—)	—)	—)
Other items, net	(46)	160)	219)	16)	356)
Trade receivables	140)	(2,280)	(2,629)	80)	838)
Sold receivables	—)	—)	—)	454)	(422)
Inventories	(277)	(251)	(251)	(130)	25)
Accounts payable	(58)	(23)	464)	943)	(119)
Other current assets	52)	(146)	(67)	(42)	114)
Other current liabilities	(90)	637)	(912)	(276)	231)
Changes in current assets and liabilities	(233)	(2,063)	(3,395)	1,029)	667)
Adjustments to reconcile net income (loss) to operating cash flows	1,619)	12,828)	(10,463)	1,596)	1,820)
Net cash provided by operating activities	3,552)	2,574)	527)	5,238)	2,467)
Cash receipts on sold receivables	—)	1,296)	2,286)	—)	—)
Capital expenditures	(768)	(826)	(1,217)	(1,247)	(648)
Payments to acquire business, net of cash acquired	(199)	(248)	—)	—)	(9,468)
Proceeds from net investment hedges	590)	24)	—)	—)	—)
Proceeds from sale of business, net of cash disposed	1,875)	18)	—)	—)	—)
Other investing activities, net	13)	24)	87)	134)	412)
Net cash (used for) provided by investing activities	1,511)	288)	1,156)	(1,113)	(9,704)
Repayments of long-term debt	(4,795)	(2,713)	(2,644)	(86)	(12,314)
Proceeds from issuance of long-term debt	2,967)	2,990)	1,496)	6,981)	14,834)
Debt prepayment and extinguishment costs	(99)	—)	—)	—)	—)
Proceeds from issuance of commercial paper	557)	2,784)	6,043)	6,680)	—)
Repayments of commercial paper	(557)	(3,213)	(6,249)	(6,043)	—)
Proceeds from issuance of common stock to Sponsors	—)	—)	—)	—)	10,000)
Dividends paid, Series A Preferred Stock	—)	—)	—)	(180)	(900)
Dividends paid, common stock	(1,953)	(3,183)	(2,888)	(3,584)	(1,302)
Redemption of Series A Preferred Stock	—)	—)	—)	(8,320)	—)
Other financing activities, net	(33)	(28)	16)	(69)	(135)
Net cash provided by (used for) financing activities	(3,913)	(3,363)	(4,226)	(4,621)	10,183)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(6)	(132)	57)	(137)	(407)
Cash, cash equivalents, and restricted cash, net increase (decrease)	1,144)	(633)	(2,486)	(633)	2,539)
Cash, cash equivalents, and restricted cash, balance at beginning of period	1,136)	1,769)	4,255)	4,837)	2,298)
Cash, cash equivalents, and restricted cash, balance at end of period	2,280)	1,136)	1,769)	4,204)	4,837)

Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Net Income (Loss): The net income exhibited significant volatility over the years, starting with a positive figure of 647 million USD in 2015, peaking at 10,990 million USD in 2017, followed by a substantial loss of 10,254 million USD in 2018, and a moderate recovery to 1,933 million USD in 2019.
Depreciation and Amortization: This expense increased sharply from 740 million USD in 2015 to 1,337 million USD in 2016, then declined to stabilize close to around 1,000 million USD in subsequent years.
Amortization of Postretirement Benefit Plans Prior Service Costs (Credits): The amortization credits remained relatively consistent in negative values, fluctuating slightly between -112 million USD and -339 million USD over the period, indicating ongoing recognition of prior costs.
Goodwill and Intangible Asset Impairment Losses: Significant impairment losses were recorded in 2018 and 2019, with amounts reaching 15.9 billion USD and 1.9 billion USD respectively, suggesting notable write-downs of intangible assets during these years.
Deferred Income Tax Provision (Benefit): Large fluctuations were observed, particularly an extraordinary tax benefit amounting to -6,467 million USD in 2017, followed by smaller benefits in other years, indicating variations in tax liabilities and provisions.
Working Capital Changes: Trade receivables and inventories show generally declining trends or negative adjustments, whereas accounts payable and other current liabilities display variability but with notable increases in 2016, impacting changes in current assets and liabilities, which shifted from strong positive to significant negative figures after 2016.
Operating Cash Flows: Net cash provided by operating activities peaked in 2016 at 5,238 million USD, dipped sharply to 527 million USD in 2017, then rebounded in 2018 and 2019 to 2,574 million USD and 3,552 million USD respectively, reflecting fluctuations in operational efficiency and cash conversion.
Investing Activities: Cash flows used in investing activities were substantially negative in 2015 at -9,704 million USD, indicating large investments or acquisitions, before turning positive in 2017 and continuing to provide positive cash flow albeit at lower levels in later years.
Financing Activities: Financing cash flows show a positive inflow in 2015, largely driven by issuance of long-term debt and common stock, followed by significant outflows in subsequent years due to repayments of debt, dividends paid, and redemption of preferred stock, resulting in negative net cash used for financing activities after 2015.
Capital Expenditures: Capital expenditures remained relatively stable, ranging between approximately -650 million USD and -1,250 million USD annually, reflecting ongoing investment in property, plant, and equipment.
Cash Balance and Exchange Rate Effects: Cash and cash equivalents fluctuated significantly, with a notable increase in 2015 and a decline through 2017 and 2018, followed by recovery in 2019. Exchange rate changes had a generally small but negative impact on cash balances, except for a minor positive effect in 2017.

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Kraft Heinz Co. (NASDAQ:KHC)

Cash Flow Statement