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.

Twenty-First Century Fox Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014	Jun 30, 2013
Net income	4,762)	3,226)	3,016)	8,537)	4,646)	7,323)
(Income) loss from discontinued operations, net of tax	12)	44)	8)	67)	(729)	(277)
Income from continuing operations	4,774)	3,270)	3,024)	8,604)	3,917)	7,046)
Depreciation and amortization	584)	553)	530)	736)	1,142)	797)
Amortization of cable distribution investments	69)	65)	75)	80)	85)	89)
Impairment and restructuring charges	72)	315)	323)	502)	—)	—)
Equity-based compensation	204)	126)	196)	83)	129)	192)
Equity (earnings) losses of affiliates	138)	41)	34)	(904)	(622)	(655)
Cash distributions received from affiliates	235)	186)	351)	352)	358)	324)
Other, net	550)	327)	335)	(4,698)	(174)	(3,712)
CLT20 contract termination costs	—)	—)	(420)	—)	—)	—)
Deferred income taxes and other taxes	(903)	89)	466)	171)	(39)	480)
Receivables	(801)	(401)	(323)	(61)	(846)	(127)
Inventories net of program rights payable	(422)	(991)	(721)	(789)	(905)	(1,154)
Accounts payable and accrued expenses	401)	152)	(45)	279)	(81)	(278)
Other changes, net	(674)	53)	(777)	(738)	—)	—)
Change in operating assets and liabilities, net of acquisitions and dispositions	(1,496)	(1,187)	(1,866)	(1,309)	(1,832)	(1,559)
Adjustments to reconcile income from continuing operations to cash provided by operating activities	(547)	515)	24)	(4,987)	(953)	(4,044)
Net cash provided by operating activities	4,227)	3,785)	3,048)	3,617)	2,964)	3,002)
Property, plant and equipment	(551)	(377)	(263)	(424)	(678)	(622)
Acquisitions, net of cash acquired	(7)	(75)	(916)	(142)	(692)	(606)
Investments in equity affiliates	(444)	(128)	(182)	(1,249)	(19)	(502)
Proceeds from dispositions, net	365)	—)	—)	8,627)	518)	1,968)
Other investing activities, net	(540)	(172)	(277)	(76)	(64)	(152)
Net cash (used in) provided by investing activities	(1,177)	(752)	(1,638)	6,736)	(935)	86)
Borrowings	1,469)	918)	1,360)	3,161)	1,155)	1,277)
Repayment of borrowings	(1,872)	(573)	(687)	(2,845)	(296)	(754)
Repurchase of shares	—)	(619)	(4,904)	(5,939)	(3,772)	(2,026)
Dividends paid and distributions	(993)	(943)	(821)	(878)	(792)	(613)
Purchase of subsidiary shares from noncontrolling interests	—)	(1)	(290)	(652)	(127)	(163)
Sale of subsidiary shares to noncontrolling interests	—)	—)	—)	—)	—)	93)
Distribution to News Corporation	—)	—)	—)	—)	(10)	(2,588)
Other financing activities, net	(68)	(63)	12)	51)	66)	203)
Net cash used in financing activities	(1,464)	(1,281)	(5,330)	(7,102)	(3,776)	(4,571)
Net increase (decrease) in cash and cash equivalents from discontinued operations	(61)	(28)	(20)	(49)	571)	(1,431)
Exchange movement on cash balances	(66)	15)	(64)	(189)	(68)	(53)
Net increase (decrease) in cash and cash equivalents	1,459)	1,739)	(4,004)	3,013)	(1,244)	(2,967)
Cash and cash equivalents, beginning of year	6,163)	4,424)	8,428)	5,415)	6,659)	9,626)
Cash and cash equivalents, end of year	7,622)	6,163)	4,424)	8,428)	5,415)	6,659)

Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).

Net Income and Income from Continuing Operations: The net income experienced significant fluctuations over the period. It started at 7,323 million US dollars in 2013, dropped sharply to 4,646 million in 2014, then reached a peak of 8,537 million in 2015, before declining again to 3,226 million in 2017, and slightly recovering to 4,762 million in 2018. Income from continuing operations followed a similar pattern, with a notable peak in 2015 and a substantial dip in 2016 and 2017 before a recovery in 2018.
Depreciation, Amortization, and Impairments: Depreciation and amortization costs showed variability, rising sharply in 2014 to 1,142 million from 797 million in 2013, then decreasing and stabilizing around 530-584 million in later years. Amortization of cable distribution investments gradually declined from 89 million in 2013 to 65 million in 2017, indicating reduced related amortization expenses. Impairment and restructuring charges appeared starting 2015 with 502 million, then decreased steadily to 72 million by 2018, reflecting a reduction in such charges over time.
Equity-based Compensation and Affiliate Income: Equity-based compensation fluctuated moderately, with the highest value recorded in 2018 at 204 million and a low of 83 million in 2015. Equity earnings of affiliates were negative from 2013 to 2015, with losses reaching 904 million in 2015, but turned positive from 2016 onwards, increasing to 138 million in 2018. This shift indicates an improvement in affiliate performance or equity investments.
Cash Flow from Operating Activities: Net cash provided by operating activities remained positive throughout the period, showing an increasing trend from 3,002 million in 2013 to 4,227 million in 2018. However, adjustments to reconcile income to cash flow were volatile, including a substantial negative adjustment in 2013 (-4,044 million) and a positive adjustment in 2017 (515 million), suggesting variability in non-cash expenses or working capital changes.
Changes in Operating Assets and Liabilities: Changes in operating assets and liabilities were consistently negative, indicating cash outflows to support operations. The largest outflow occurred in 2016 (-1,866 million), while the smallest was in 2017 (-1,187 million). This suggests fluctuating working capital dynamics over the years.
Investing Activities: Net cash used in investing activities showed inconsistency. A notable positive cash inflow occurred in 2015 (6,736 million), driven by significant proceeds from dispositions (8,627 million), which contrasts with outflows in other years, such as -935 million in 2014 and -1,177 million in 2018. Capital expenditures on property, plant, and equipment were relatively stable but low compared to disposition proceeds.
Financing Activities: Cash flows from financing activities were predominantly negative, reflecting repayments of borrowing, share repurchases, and dividend payments. Particularly, share repurchases peaked in 2015 at -5,939 million but dramatically decreased to -619 million in 2017 and were almost negligible in 2018. Borrowings exhibited variability, with increases in some years partially offset by repayments. Total net cash used in financing activities decreased substantially after 2016, indicating a reduction in financing outflows.
Cash and Cash Equivalents: Cash and cash equivalents decreased markedly from 9,626 million in 2013 to 5,415 million in 2014 but reversed in 2015, increasing sharply to 8,428 million. There was a subsequent decrease in 2016, followed by increases in 2017 and 2018, ending at 7,622 million. The net change in cash and equivalents aligned with this pattern, showing negative changes mainly in 2013, 2014, and 2016, and positive changes in 2015, 2017, and 2018.
Other Notable Observations: The "Other, net" category experienced extreme volatility, with highly negative values in 2013 (-3,712 million) and 2015 (-4,698 million) but positive values in 2016 and subsequent years, reflecting substantial one-time or irregular impacts on income. Deferred income taxes and other taxes fluctuated, indicated by a negative value in 2018 (-903 million) after mostly positive or small negative amounts previously.

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Twenty-First Century Fox Inc. (NASDAQ:FOX)

Cash Flow Statement