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.

Deckers Outdoor Corp., consolidated cash flow statement

US$ in thousands

12 months ended:	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018
Net income	516,822)	451,949)	382,575)	276,142)	264,308)	114,394)
Depreciation, amortization, and accretion	47,858)	42,878)	40,530)	38,912)	44,941)	48,572)
Amortization on cloud computing arrangements	2,149)	1,552)	737)	—)	—)	—)
Loss on extinguishment of debt	226)	—)	—)	—)	447)	—)
Bad debt expense (benefit)	1,983)	(342)	3,053)	3,498)	2,849)	4,168)
Deferred tax expense (benefit)	(9,719)	(27,796)	(8,171)	2,934)	6,939)	8,138)
Stock-based compensation	26,897)	26,816)	22,701)	14,477)	14,774)	14,302)
Loss on disposal of long-lived assets	2,691)	107)	1,019)	698)	277)	387)
Impairment of intangible assets	—)	—)	3,522)	—)	—)	—)
Impairment of operating lease and other long-lived assets	2,817)	3,186)	14,084)	1,365)	180)	2,417)
Restructuring charges	—)	—)	—)	—)	295)	1,667)
Gain on settlement of asset retirement obligations	—)	—)	(207)	(705)	—)	—)
Trade accounts receivable, net	(806)	(86,627)	(33,173)	(10,493)	(16,157)	10,770)
Inventories	(26,056)	(228,554)	33,378)	(32,777)	8,827)	(751)
Prepaid expenses and other current assets	(5,609)	(19,095)	(22,128)	2,477)	(515)	11,124)
Income tax receivable	13,459)	(11,933)	1,842)	(5,811)	(165)	26,999)
Net operating lease assets and lease liabilities	(8,308)	3,189)	250)	(3,264)	—)	—)
Other assets	13,240)	(28,296)	(3,103)	(6,558)	2,630)	(1,714)
Trade accounts payable	(74,247)	89,184)	79,176)	23,312)	31,035)	(2,184)
Other accrued expenses	11,528)	(20,370)	53,785)	(11,112)	(7,160)	28,627)
Income tax payable	4,897)	(24,494)	25,817)	(8,179)	3,809)	(1,693)
Other long-term liabilities	17,600)	999)	530)	1,418)	2,191)	62,128)
Changes in operating assets and liabilities	(54,302)	(325,997)	136,374)	(50,987)	24,495)	133,306)
Reconciliation of net income to net cash provided by operating activities	20,600)	(279,596)	213,642)	10,192)	95,197)	212,957)
Net cash provided by operating activities	537,422)	172,353)	596,217)	286,334)	359,505)	327,351)
Purchases of property and equipment	(81,025)	(51,017)	(32,218)	(32,455)	(29,086)	(34,813)
Proceeds from sales of property and equipment	12)	8)	49)	491)	68)	116)
Net cash used in investing activities	(81,013)	(51,009)	(32,169)	(31,964)	(29,018)	(34,697)
Proceeds from short-term borrowings	—)	—)	9,100)	69,336)	162,001)	214,751)
Repayments of short-term borrowings	—)	—)	(9,478)	(69,197)	(161,621)	(214,889)
Debt issuance costs on short-term borrowings	—)	—)	—)	—)	(1,297)	—)
Loan origination costs on revolving credit facilities	(1,537)	—)	—)	—)	—)	—)
Proceeds from issuance of stock	2,170)	1,991)	1,502)	1,288)	1,024)	765)
Proceeds from exercise of stock options	4,396)	1,204)	6,775)	3,615)	—)	—)
Repurchases of common stock	(297,372)	(356,653)	(99,147)	(190,405)	(161,395)	(149,687)
Cash paid for shares withheld for taxes	(16,688)	(14,024)	(7,432)	(6,148)	(5,328)	(8,105)
Repayments of mortgage principal	—)	—)	(30,901)	(603)	(578)	(550)
Net cash used in financing activities	(309,031)	(367,482)	(129,581)	(192,114)	(167,194)	(157,715)
Effect of foreign currency exchange rates on cash and cash equivalents	(9,110)	304)	5,458)	(2,512)	(3,571)	3,267)
Net change in cash and cash equivalents	138,268)	(245,834)	439,925)	59,744)	159,722)	138,206)
Cash and cash equivalents at beginning of period	843,527)	1,089,361)	649,436)	589,692)	429,970)	291,764)
Cash and cash equivalents at end of period	981,795)	843,527)	1,089,361)	649,436)	589,692)	429,970)

Based on: 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31).

Net Income: The net income shows a consistent upward trend from 2018 to 2023, rising from $114.4 million in 2018 to $516.8 million in 2023. This indicates strong and growing profitability over the period.
Depreciation, Amortization, and Accretion: This expense slightly declined from $48.6 million in 2018 to a low of $38.9 million in 2020, before gradually increasing again to $47.9 million in 2023. The amortization on cloud computing arrangements appeared starting in 2021 and increased steadily through 2023, reflecting additional intangible asset amortization possibly related to technology investments.
Unusual and Non-Recurring Items: Loss on extinguishment of debt appeared in 2019 and 2023 with relatively small amounts. Impairments show spikes in 2021, including a $3.5 million impairment of intangible assets and significant impairment charges related to operating leases and long-lived assets. Restructuring charges were minor and limited to early years (2018-2019).
Deferred Tax Expense (Benefit): This item shows notable volatility, moving from an expense in early years to significant tax benefits in 2021 and 2022, before a smaller benefit in 2023. The large negative figures in 2021 and 2022 suggest considerable tax adjustments or realizations of deferred tax assets.
Working Capital Components: Trade accounts receivable and inventories exhibit high volatility. Trade receivables moved from positive to large negative fluctuations, with a peak negative value in 2022. Inventories also reversed dramatically, peaking negatively in 2022 before reducing significantly in 2023. Prepaid expenses and other current assets mostly remained negative or volatile. Trade accounts payable largely increased until 2022 but declined sharply in 2023. Other accrued expenses and income tax payable fluctuated, with notable large spikes in liabilities in some years.
Operating Activities: Net cash provided by operating activities shows strong growth from $327.4 million in 2018 to a peak of $596.2 million in 2021, followed by a decrease in 2022 and a rebound to $537.4 million in 2023. The reconciliation adjustments showed irregular patterns, with a sharp negative figure in 2022.
Investing Activities: Purchases of property and equipment increased over the period, rising sharply to $81 million in 2023 from lower levels previously, indicating increased capital expenditure. Proceeds from sales of property and equipment remained negligible across years, resulting in net cash used in investing activities consistently negative and growing in magnitude.
Financing Activities: Short-term borrowing activities decreased sharply, with no recorded borrowings or repayments in 2022 and 2023 compared to earlier years. Stock issuance and exercise of stock options steadily increased. Conversely, repurchases of common stock were significant and growing, peaking at $356.7 million in 2022 and slightly lower in 2023. Net cash used in financing activities mirrors this, showing large outflows, especially in 2022 and 2023. Payments related to taxes on shares withheld increased steadily as well.
Cash Position and Currency Effects: Cash and cash equivalents increased notably from $292 million in 2018 to over $1.08 billion in 2021, before declining in 2022 and recovering somewhat in 2023 to $981.8 million. Foreign currency effects were minor except for 2019 and 2023, where negative exchange impacts slightly reduced cash balances.
Summary: Overall, the financial data reveal strong profitability growth alongside increased operating cash flows and rising capital expenditures. Working capital elements show marked volatility, especially in inventories and receivables, affecting cash flow patterns. Financing strategies appear focused on significant stock repurchases and steady equity issuance, coupled with reduced reliance on short-term borrowings in recent years. Cash management has resulted in substantial cash reserves despite fluctuations in investing and financing activities.

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Deckers Outdoor Corp. (NYSE:DECK)

Cash Flow Statement