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.

Paramount Global, consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net earnings, Paramount and noncontrolling interests	1,214)	4,631)	2,701)	3,339)	1,960)
Net earnings from discontinued operations, net of tax	(379)	(162)	(117)	(38)	—)
Net earnings from continuing operations	835)	4,469)	2,584)	3,301)	1,960)
Depreciation and amortization	405)	390)	430)	443)	223)
Amortization of content costs and participation and residuals expense	14,951)	13,352)	11,045)	12,554)	—)
Deferred tax provision (benefit)	(106)	90)	122)	(769)	44)
Stock-based compensation	172)	192)	274)	291)	146)
Net (gain) loss on dispositions	(56)	(2,343)	(214)	(498)	1)
Net (gains) losses from investments	9)	(47)	(206)	(113)	—)
Loss on extinguishment of debt	120)	128)	126)	—)	—)
Equity in loss of investee companies, net of tax and distributions	207)	96)	34)	58)	58)
(Increase) decrease in receivables	(180)	179)	(68)	(256)	(254)
(Increase) decrease in inventory and related program, participation, and residuals liabilities	(17,164)	(16,584)	(12,170)	(14,215)	(830)
Increase (decrease) in accounts payable and other liabilities	596)	760)	188)	297)	(114)
Increase (decrease) in pension and postretirement benefit obligations	(44)	(61)	(20)	16)	(47)
Increase (decrease) in income taxes	272)	265)	2)	160)	213)
Other, net	(159)	(51)	88)	(39)	25)
Change in assets and liabilities	(16,679)	(15,492)	(11,980)	(14,037)	(1,007)
Adjustments to reconcile net earnings from continuing operations to net cash flow provided by operating activities	(977)	(3,634)	(369)	(2,071)	(535)
Net cash flow provided by (used for) operating activities	(142)	835)	2,215)	1,230)	1,425)
Investments	(254)	(193)	(59)	(171)	(124)
Capital expenditures	(358)	(354)	(324)	(353)	(165)
Acquisitions, net of cash acquired	—)	(54)	(147)	(399)	(31)
Proceeds from dispositions	95)	3,028)	593)	756)	—)
Other investing activities	(1)	(25)	—)	14)	(5)
Net cash flow (used for) provided by investing activities	(518)	2,402)	63)	(153)	(325)
Proceeds from (repayments of) commercial paper borrowings, net	—)	—)	(698)	25)	(5)
Proceeds from issuance of debt	1,138)	58)	4,375)	492)	—)
Repayment of debt	(3,140)	(2,230)	(2,909)	(910)	—)
Dividends paid on preferred stock	(58)	(30)	—)	—)	—)
Dividends paid on common stock	(631)	(617)	(600)	(595)	(276)
Proceeds from issuance of preferred stock	—)	983)	—)	—)	—)
Proceeds from issuance of common stock	—)	1,672)	—)	—)	—)
Purchase of Company common stock	—)	—)	(58)	(57)	(586)
Payment of payroll taxes in lieu of issuing shares for stock-based compensation	(31)	(110)	(93)	(56)	(59)
Proceeds from exercise of stock options	—)	408)	5)	15)	27)
Payments to noncontrolling interests	(218)	(235)	(59)	(91)	—)
Other financing activities	(41)	(51)	(53)	(39)	(22)
Net cash flow used for financing activities	(2,981)	(152)	(90)	(1,216)	(921)
Net cash flow provided by operating activities from discontinued operations	361)	118)	79)	—)	1)
Net cash flow used for investing activities from discontinued operations	(8)	(7)	(7)	(2)	(23)
Net cash flow from discontinued operations	353)	111)	72)	(2)	(22)
Effect of exchange rate changes on cash and cash equivalents	(94)	(48)	25)	(1)	—)
Net increase (decrease) in cash, cash equivalents and restricted cash	(3,382)	3,148)	2,285)	(142)	157)
Cash, cash equivalents and restricted cash at beginning of year	6,267)	3,119)	834)	976)	285)
Cash, cash equivalents and restricted cash at end of year	2,885)	6,267)	3,119)	834)	442)

Based on: 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), 10-K (reporting date: 2018-12-31).

Net Earnings Trends: Net earnings attributable to the company and noncontrolling interests showed significant volatility over the five-year span. After an initial rise from 1,960 million USD in 2018 to 3,339 million USD in 2019, net earnings declined to 2,701 million USD in 2020 before recovering substantially to 4,631 million USD in 2021. However, this was followed by a steep decrease to 1,214 million USD in 2022. Discontinued operations consistently contributed negatively, increasing their net loss impact over time, particularly notable in 2022. Earnings from continuing operations mirrored the overall net earnings pattern but demonstrated a significant drop in 2022.
Depreciation, Amortization, and Related Expenses: Depreciation and amortization expenses increased from 223 million USD in 2018 to a peak of 443 million USD in 2019, then remained relatively stable in subsequent years, fluctuating slightly around the 390–405 million USD range. Amortization of content costs and related expenses, introduced from 2019, displayed a consistent upward trend, rising from 12,554 million USD in 2019 to 14,951 million USD in 2022, indicating increased amortization pressures related to content assets.
Tax and Stock-Based Compensation: The deferred tax provision showed fluctuation including a significant benefit in 2019 (-769 million USD) and again in 2022 (-106 million USD), interspersed with positive tax provisions in other years. Stock-based compensation costs peaked in 2019 at 291 million USD and gradually decreased to 172 million USD by 2022, suggesting a reduction in this non-cash expense over time.
Investment and Disposition Gains/Losses: Net gains or losses on dispositions varied substantially, with a pronounced loss in 2021 (-2,343 million USD), followed by a much smaller loss in 2022 (-56 million USD). Gains and losses from investments also fluctuated but remained relatively minor in scale, turning slightly positive in 2022. Loss on extinguishment of debt appeared starting in 2020, maintaining a consistent range around 120 million USD.
Changes in Working Capital and Other Adjustments: Accounts receivables and inventory-related liabilities showed significant fluctuations, with inventory and related liabilities reflecting substantial increases in liabilities (negative changes) throughout the period, reaching a high of -17,164 million USD in 2022, which could indicate increased program or content liabilities. Changes in accounts payable generally increased liabilities, with the most significant increases noted from 2020 onwards. Income tax-related liabilities increased steadily, while pension and postretirement obligations showed minor decreases. Overall changes in assets and liabilities exhibited large negative adjustments, especially in recent years.
Cash Flows from Operating Activities: Net cash flow from operating activities experienced volatility, declining from 1,425 million USD in 2018 to 1,230 million USD in 2019, then increasing to a peak of 2,215 million USD in 2020, before progressively falling to negative 142 million USD in 2022. Adjustments made to reconcile net earnings to cash flow also varied, with large negative adjustments in 2021 notably impacting operating cash flow.
Investing Activities: Investing activities reflected an initial net cash outflow, with increasing investments and capital expenditures peaking at around 354–358 million USD annually from 2019 onward. Proceeding from dispositions surged substantially in 2021 reaching 3,028 million USD, but declined sharply to 95 million USD in 2022. Overall, net cash flows from investing activities turned positive in 2021 due to these large dispositions but reverted to an outflow in 2022.
Financing Activities: Financing activities mostly resulted in net cash outflows, with a significant outflow spike in 2022 (-2,981 million USD). Debt issuance increased in 2020 and 2022 after a dip in 2021, while debt repayments consistently rose year over year, reaching 3,140 million USD in 2022. Dividends paid on common stock steadily increased over the years. Notable inflows included proceeds from issuance of preferred and common stock in 2020 and 2021, respectively. Purchases of company common stock were significant early on, but ceased after 2020.
Discontinued Operations and Other Cash Flow Items: Discontinued operations contributed positively to net cash flow in later years, with a growing net cash inflow peaking at 353 million USD in 2022. The effect of exchange rate changes had a negative impact in 2021 and 2022, amounting to -48 million USD and -94 million USD respectively.
Cash Position: The cash, cash equivalents, and restricted cash balance showed strong growth through 2021, increasing from 442 million USD at the end of 2018 to 6,267 million USD at the end of 2021. However, this was followed by a sharp decrease of 3,382 million USD in 2022, ending the year at 2,885 million USD, indicating a significant cash outflow or deployment in that year.

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Paramount Global (NASDAQ:PARA)

Cash Flow Statement