Cash Flow Statement

Beginner level

The cash flow statement provides information about a company’s 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’s 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.

T-Mobile US Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Net income	3,064	3,468	2,888	4,536	1,460
Depreciation and amortization	14,151	6,616	6,486	5,984	6,243
Stock-based compensation expense	694	495	424	306	235
Deferred income tax expense (benefit)	822	1,091	980	(1,404)	914
Bad debt expense	602	307	297	388	477
Losses from sales of receivables	36	130	157	299	228
Deferred rent expense	—	—	26	76	121
Losses on redemption of debt	371	19	122	—	—
Impairment expense	418	—	—	—	—
Gains on disposal of spectrum licenses	—	—	—	(235)	(835)
Change in fair value of embedded derivatives	—	—	—	(52)	(25)
Accounts receivable	(3,273)	(3,709)	(4,617)	(444)	(603)
Equipment installment plan receivables	(1,453)	(1,015)	(1,598)	(894)	97
Inventories	(2,222)	(617)	(201)	(844)	(802)
Operating lease right-of-use assets	3,465	1,896	—	—	—
Deferred purchase price from sales of receivables	—	—	—	(86)	(270)
Other current and long-term assets	(402)	(144)	(181)	(575)	(133)
Accounts payable and accrued liabilities	(2,123)	17	(867)	1,079	(1,201)
Short and long-term operating lease liabilities	(3,699)	(2,131)	—	—	—
Other current and long-term liabilities	(2,178)	144	(69)	(233)	158
Changes in operating assets and liabilities	(11,885)	(5,559)	(7,533)	(1,997)	(2,754)
Adjustments to reconcile net income to net cash provided by operating activities	5,209	3,099	959	3,365	4,604
Other, net	367	257	52	61	71
Net cash provided by operating activities	8,640	6,824	3,899	7,962	6,135
Purchases of property and equipment, including capitalized interest	(11,034)	(6,391)	(5,541)	(5,237)	(4,702)
Purchases of spectrum licenses and other intangible assets, including deposits	(1,333)	(967)	(127)	(5,828)	(3,968)
Proceeds from sales of tower sites	—	38	—	—	—
Proceeds related to beneficial interests in securitization transactions	3,134	3,876	5,406	—	—
Net cash related to derivative contracts under collateral exchange arrangements	632	(632)	—	—	—
Acquisition of companies, net of cash and restricted cash acquired	(5,000)	(31)	(338)	—	—
Proceeds from the divestiture of prepaid business	1,224	—	—	—	—
Sales of short-term investments	—	—	—	—	2,998
Other, net	(338)	(18)	21	1	(8)
Net cash used in investing activities	(12,715)	(4,125)	(579)	(11,064)	(5,680)
Proceeds from issuance of long-term debt	35,337	—	2,494	10,480	997
Payments of consent fees related to long-term debt	(109)	—	—	—	—
Proceeds from borrowing on revolving credit facility	—	2,340	6,265	2,910	—
Repayments of revolving credit facility	—	(2,340)	(6,265)	(2,910)	—
Repayments of financing lease obligations	(1,021)	(798)	(700)	(486)	(205)
Repayments of short-term debt for purchases of inventory, property and equipment and other financial liabilities	(481)	(775)	(300)	(300)	(150)
Repayments of long-term debt	(20,416)	(600)	(3,349)	(10,230)	(20)
Issuance of common stock	19,840	—	—	—	—
Repurchases of common stock	(19,536)	—	(1,071)	(427)	—
Proceeds from issuance of short-term debt	18,743	—	—	—	—
Repayments of short-term debt	(18,929)	—	—	—	—
Tax withholdings on share-based awards	(439)	(156)	(146)	(166)	(121)
Dividends on preferred stock	—	—	—	(55)	(55)
Cash payments for debt prepayment or debt extinguishment costs	(82)	(28)	(212)	—	—
Other, net	103	(17)	(52)	5	17
Net cash provided by (used in) financing activities	13,010	(2,374)	(3,336)	(1,179)	463
Change in cash and cash equivalents, including restricted cash	8,935	325	(16)	(4,281)	918
Cash and cash equivalents, including restricted cash, beginning of period	1,528	1,203	1,219	5,500	4,582
Cash and cash equivalents, including restricted cash, end of period	10,463	1,528	1,203	1,219	5,500

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-14).

Cash flow statement item	Description	The company
Net cash provided by operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	T-Mobile US Inc.’s net cash provided by operating activities increased from 2018 to 2019 and from 2019 to 2020.
Net cash used in investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	T-Mobile US Inc.’s net cash used in investing activities decreased from 2018 to 2019 and from 2019 to 2020.
Net cash provided by (used in) financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	T-Mobile US Inc.’s net cash provided by (used in) financing activities increased from 2018 to 2019 and from 2019 to 2020.

T-Mobile US Inc. (NASDAQ:TMUS)

Cash Flow Statement