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.

ON Semiconductor Corp., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	2,185,600)	1,903,800)	1,011,200)	236,400)	213,900)
Depreciation and amortization	609,500)	551,800)	596,700)	625,100)	593,100)
(Gain) loss on sale or disposal of fixed assets	11,600)	(32,600)	—)	—)	—)
(Gain) loss on divestiture of businesses	700)	(67,000)	(10,200)	—)	—)
Loss on debt refinancing and prepayment	13,300)	7,100)	29,000)	—)	6,200)
Amortization of debt discount and issuance costs	11,300)	11,000)	10,700)	12,100)	13,000)
Share-based compensation	121,100)	100,800)	101,300)	67,700)	79,400)
Non-cash interest on convertible notes	—)	—)	24,700)	38,200)	37,800)
Non-cash asset impairment charges	19,500)	18,600)	10,800)	18,800)	5,000)
Goodwill and Intangible asset impairment charges	—)	386,800)	—)	—)	—)
Change in deferred tax balances	(127,700)	3,100)	62,400)	(122,600)	11,200)
Other	(4,700)	100)	4,300)	7,300)	1,800)
Receivables	(112,800)	(47,800)	(136,300)	31,400)	4,700)
Inventories	(495,200)	(235,200)	(122,800)	(26,300)	34,600)
Other assets	700)	(110,500)	(22,900)	(60,000)	(34,600)
Accounts payable	(91,700)	38,200)	70,700)	34,200)	(79,900)
Accrued expenses and other current liabilities	(178,600)	96,500)	123,900)	(18,500)	(201,700)
Other long-term liabilities	14,900)	8,400)	28,500)	40,500)	10,200)
Changes in assets and liabilities, exclusive of acquisitions and divestitures	(862,700)	(250,400)	(58,900)	1,300)	(266,700)
Adjustments to reconcile net income to net cash provided by operating activities	(208,100)	729,300)	770,800)	647,900)	480,800)
Net cash provided by operating activities	1,977,500)	2,633,100)	1,782,000)	884,300)	694,700)
Purchase of property, plant and equipment	(1,575,600)	(1,005,000)	(444,600)	(383,600)	(534,600)
Proceeds from sale of property, plant and equipment	4,000)	59,100)	14,000)	6,300)	1,900)
Deposits (made) utilized for purchases of property, plant and equipment	36,500)	(31,000)	(47,400)	2,200)	4,600)
Payments related to acquisition of business, net of cash acquired	(236,300)	(2,400)	(399,400)	(4,500)	(888,000)
Divestiture of business, net of cash transferred and proceeds from escrow	—)	263,100)	7,000)	—)	5,200)
Purchase of available-for-sale securities	—)	(18,000)	(48,900)	—)	—)
Proceeds from sale or maturity of available-for-sale securities	33,500)	28,800)	4,200)	—)	—)
Settlement of purchase price from previous acquisition	—)	—)	—)	26,000)	—)
Purchase of license and deposit made for manufacturing facility	—)	—)	—)	(100,000)	(100,000)
Net cash used in investing activities	(1,737,900)	(705,400)	(915,100)	(453,600)	(1,510,900)
Proceeds for the issuance of common stock under the ESPP	25,800)	22,900)	23,500)	23,600)	26,200)
Proceeds from exercise of stock options	—)	—)	—)	—)	1,700)
Payment of tax withholding for RSUs	(66,800)	(78,100)	(38,900)	(20,000)	(33,500)
Repurchase of common stock	(564,200)	(259,800)	—)	(65,400)	(139,000)
Issuance and borrowings under debt agreements	1,845,000)	500,000)	787,300)	1,858,000)	1,404,800)
Reimbursement of debt issuance and other financing costs	4,500)	—)	2,700)	—)	—)
Payment of debt issuance and other financing costs	(12,400)	—)	(3,800)	(2,400)	(24,000)
Repayment of borrowings under debt agreements	(1,723,400)	(530,000)	(1,270,500)	(2,023,900)	(594,400)
Release of escrow related to prior acquisition	—)	—)	—)	—)	(10,400)
Payment of finance lease obligations	(15,300)	(11,500)	—)	—)	(800)
Payment for purchase of bond hedges	(414,000)	—)	(160,300)	—)	—)
Proceeds from issuance of warrants	242,500)	—)	93,800)	—)	—)
Payments related to prior acquisition	(5,800)	(9,200)	(3,200)	(8,900)	(5,200)
Dividend to non-controlling shareholder	(2,400)	(4,300)	—)	(5,000)	(2,300)
Net cash provided by (used in) financing activities	(686,500)	(370,000)	(569,400)	(244,000)	623,100)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1,100)	(2,400)	(1,300)	600)	200)
Net increase (decrease) in cash, cash equivalents and restricted cash	(448,000)	1,555,300)	296,200)	187,300)	(192,900)
Cash, cash equivalents and restricted cash, beginning of period	2,933,000)	1,377,700)	1,081,500)	894,200)	1,087,100)
Cash, cash equivalents and restricted cash, end of period	2,485,000)	2,933,000)	1,377,700)	1,081,500)	894,200)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Net income trend: Net income demonstrated a strong upward trajectory over the five-year period, increasing from $213.9 million in 2019 to $2.1856 billion in 2023. Notably, there was a significant jump between 2020 and 2021, followed by continued growth through 2023.
Depreciation and amortization: This expense category remained relatively steady, fluctuating slightly around the $550 million to $630 million range, with a slight dip in 2022 before rising again in 2023.
Non-operating gains and losses: There were occasional gains and losses related to sales or disposals of fixed assets and divestitures, with notable losses on divestitures in 2022. Additionally, loss on debt refinancing was present in several years, especially in 2021.
Share-based compensation: Share-based compensation increased moderately from $79.4 million in 2019 to $121.1 million in 2023, indicating a gradual rise in employee incentive costs.
Impairment charges: Non-cash asset impairment charges showed some volatility, generally increasing over the period, culminating in a substantial goodwill and intangible asset impairment charge of $386.8 million in 2022.
Deferred tax balances: The change in deferred tax balances fluctuated widely, with large negative changes in 2020 and 2023, which may have impacted tax expense and cash flow dynamics in those years.
Working capital components: Receivables and inventories shifted notably, with both showing large negative changes especially in later years, indicating either write-downs, inventory adjustments, or collection challenges. Accounts payable and accrued expenses also fluctuated, reflecting changes in payment patterns and short-term obligations.
Operating cash flows: Net cash provided by operating activities exhibited strong growth, peaking at $2.633 billion in 2022 before decreasing slightly to $1.9775 billion in 2023, indicating robust cash generation capacity despite some volatility.
Investing cash flows: Cash used in investing activities was consistently negative, with significant capital expenditures, particularly increasing in 2022 and 2023, suggesting major investments in property, plant, and equipment. Acquisitions showed variability, with large outflows in earlier years and smaller amounts later on.
Financing activities: Net cash used in financing activities varied, turning negative in most years except 2019. There was substantial issuance of debt in 2023 and prior years, balanced by considerable repayment in all periods. Share repurchases were notable in 2022 and 2023, reflecting capital return strategies. Proceeds from stock issuances were relatively stable but modest in comparison to debt activities.
Cash position: Cash, cash equivalents, and restricted cash increased significantly in 2022 to $2.933 billion, before declining to $2.485 billion in 2023. The net increases and decreases in cash were influenced heavily by operating, investing, and financing activities, with the large investing outflows in 2023 contributing to the cash reduction.

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ON Semiconductor Corp. (NASDAQ:ON)

Cash Flow Statement