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.

DuPont de Nemours Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net income	600)	3,999)	1,592)	4,404)	7,783)
Depreciation and amortization	3,195)	5,918)	3,969)	2,862)	2,521)
Provision (credit) for deferred income tax and other tax related items	(768)	(434)	(2,083)	(1,259)	305)
Earnings of nonconsolidated affiliates less than dividends received	909)	83)	128)	243)	142)
Net periodic pension benefit (credit) cost	(55)	58)	1,026)	—)	—)
Pension contributions	(697)	(2,964)	(1,744)	(629)	(844)
Net gain on sales of assets, businesses and investments	(149)	(93)	(1,172)	(214)	(4,655)
Net (gain) loss on step acquisition of nonconsolidated affiliate	—)	47)	—)	(2,445)	(361)
Restructuring and asset related charges - net	588)	1,105)	1,789)	595)	559)
Goodwill impairment charges	1,175)	—)	1,491)	—)	—)
Amortization of merger-related inventory step-up	253)	1,628)	1,573)	—)	—)
Asbestos-related charge	—)	—)	—)	1,113)	—)
Excess tax benefits from share-based payment arrangements	—)	—)	—)	(57)	(41)
Other net loss	338)	673)	470)	113)	180)
Accounts and notes receivable	(2,227)	(1,611)	(2,589)	(1,539)	(84)
Proceeds from interests in trade accounts receivable conduits	—)	—)	2,269)	1,257)	1,034)
Inventories	387)	(1,490)	(2,218)	610)	780)
Accounts payable	(1,049)	201)	2,631)	458)	(681)
Other assets and liabilities, net	(1,091)	(2,389)	1,563)	(34)	878)
Changes in assets and liabilities, net of effects of acquired and divested companies	(3,980)	(5,289)	1,656)	752)	1,927)
Adjustments to reconcile net income to net cash provided by operating activities	809)	732)	7,103)	1,074)	(267)
Cash provided by operating activities	1,409)	4,731)	8,695)	5,478)	7,516)
Capital expenditures	(2,472)	(3,837)	(3,570)	(3,804)	(3,703)
Investment in gas field developments	(25)	(114)	(121)	(113)	—)
Construction of assets pending sale/leaseback	—)	—)	—)	(63)	—)
Proceeds from sale/leaseback of assets	—)	—)	—)	87)	3)
Purchases of previously leased assets	—)	(26)	(187)	—)	(46)
Payment into escrow/trust accounts	—)	—)	(701)	(835)	—)
Distribution from escrow/trust accounts	—)	—)	143)	835)	—)
Proceeds from sales of property and businesses, net of cash divested	278)	202)	2,959)	284)	2,383)
Acquisitions of property and businesses, net of cash acquired	(180)	(20)	19)	(187)	(123)
Cash acquired in merger transaction	—)	—)	4,005)	—)	—)
Cash acquired in step acquisition of nonconsolidated affiliate	—)	—)	—)	1,050)	—)
Investments in and loans to nonconsolidated affiliates	(1)	(26)	(754)	(1,020)	(803)
Distributions and loan repayments from nonconsolidated affiliates	—)	55)	106)	109)	17)
Proceeds from sales of ownership interests in nonconsolidated affiliates	21)	4)	64)	22)	1,528)
Purchases of investments	(197)	(2,787)	(1,690)	(577)	(1,246)
Proceeds from sales and maturities of investments	242)	3,402)	4,101)	733)	640)
Proceeds from interests in trade accounts receivable conduits	—)	657)	—)	—)	—)
Other investing activities, net	21)	28)	(100)	—)	—)
Cash (used for) provided by investing activities	(2,313)	(2,462)	4,274)	(3,479)	(1,350)
Changes in short-term borrowings	2,735)	223)	(2,248)	(33)	(82)
Proceeds from issuance of long-term debt	4,005)	15,455)	499)	32)	1,383)
Payments on long-term debt	(6,900)	(9,009)	(663)	(588)	(1,114)
Purchases of treasury stock	(2,329)	(4,421)	(1,000)	(916)	(1,166)
Proceeds from issuance of Company stock	85)	197)	66)	—)	—)
Proceeds from sale of common stock	—)	—)	453)	398)	508)
Employee taxes paid for share-based payment arrangements	(84)	(128)	(99)	—)	—)
Excess tax benefits from share-based payment arrangements	—)	—)	—)	57)	41)
Distributions to noncontrolling interests	(27)	(195)	(136)	(176)	(112)
Purchases of noncontrolling interests	—)	—)	—)	(202)	(175)
Contributions from noncontrolling interests	—)	—)	—)	—)	17)
Dividends paid to stockholders	(1,611)	(3,491)	(3,394)	(2,462)	(2,253)
Cash held by Dow and Corteva at the respective Distributions	(7,315)	—)	—)	—)	—)
Debt extinguishment costs	(104)	(555)	—)	—)	—)
Other financing activities, net	(5)	6)	(1)	(2)	(88)
Cash used for financing activities	(11,550)	(1,918)	(6,523)	(3,892)	(3,041)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	9)	(344)	297)	(77)	(202)
Cash reclassified as held for sale	—)	—)	88)	—)	—)
Increase (decrease) in cash, cash equivalents and restricted cash	(12,445)	7)	6,831)	(1,970)	2,923)
Cash, cash equivalents and restricted cash at beginning of period	14,022)	14,015)	6,607)	8,577)	5,654)
Cash, cash equivalents and restricted cash at end of period	1,577)	14,022)	13,438)	6,607)	8,577)
Restricted cash and cash equivalents, included in "Other current assets"	(37)	(540)	—)	—)	—)
Cash and cash equivalents at end of year	1,540)	13,482)	13,438)	6,607)	8,577)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

The financial data over the five-year period reveals notable fluctuations in profitability, cash flows, and capital management activities.

Net Income: Net income shows a declining trend from 2015 to 2019, dropping sharply from $7.8 billion in 2015 to just $600 million in 2019. The lowest point occurred in 2017 with $1.6 billion, followed by a slight recovery in 2018 before plunging again in 2019.
Depreciation and Amortization: This expense increased consistently from 2015, peaking in 2018 at $5.9 billion before dropping mid-2019. The trend suggests growing investments in fixed assets until 2018, followed by a reduction in chargeable amortization or asset base in 2019.
Tax Provisions: The provision for deferred income tax and related items exhibits a negative pattern except for the initial positive amount in 2015, indicating probable deferred tax benefits recognized from 2016 onward.
Nonconsolidated Affiliates: Earnings from these affiliates fluctuate, with a significant increase in 2019 reaching $909 million, potentially reflecting improved performance or accounting changes in investments.
Pension and Related Contributions: Net periodic pension benefit costs appear only from 2017 onward, starting at $1 billion, then sharply declining. Pension contributions show large outflows throughout all years, reaching a peak outflow in 2018 of almost $3 billion, which tapered considerably in 2019.
Gains and Losses on Sales: Net gains on asset sales are mostly negative but less severe after 2015’s large loss of $4.6 billion, indicating normalization of asset disposals. Step acquisition transactions show a similar volatile pattern with large negative amounts early and small gains or nil thereafter.
Restructuring and Asset Charges: These charges rise substantially in 2017, reflecting increased restructuring efforts, followed by a decline but remaining elevated through 2019, consistent with ongoing operational adjustments.
Goodwill Impairments: Reported impairments occur selectively in 2017 and 2019, with substantial charges exceeding $1 billion in both years, signaling periodic reassessments of asset values with material write-downs.
Inventory and Working Capital Changes: Inventories and receivables show volatility, with marked decreases in 2017 and 2018, suggesting inventory reductions or write-offs and tighter receivables management. Accounts payable movements are irregular, including a large negative swing in 2019, which may reflect payment timing variations or supplier negotiations.
Operating Cash Flows: Cash provided by operating activities is highest in 2017 at nearly $8.7 billion but declines sharply after, reaching $1.4 billion in 2019. This corresponds with net income trends and indicates weakening core operating cash generation.
Investing Activities: Capital expenditures remained relatively steady around $3.5 to $3.8 billion annually until 2018 before decreasing to $2.5 billion in 2019. The cash flow from investing activities fluctuates, with a major inflow in 2017 due to large proceeds from sales of property/businesses juxtaposed against significant outflows in other years.
Financing Activities: Financing cash flows are predominantly negative throughout, reflecting repayments of debt, substantial repurchases of treasury stock (notably increasing in 2018), and dividend payments which peak in 2018 and reduce considerably in 2019. Issuance of long-term debt spikes dramatically in 2018, suggesting financing of acquisitions or restructuring initiatives.
Liquidity and Cash Position: Total cash, cash equivalents, and restricted cash shows an overall increase from 2015 through 2018, doubling from about $8.5 billion to $14 billion, before plummeting in 2019 to approximately $1.5 billion. The dramatic decrease in 2019 highlights significant cash outflows possibly related to large distributions or operational challenges.

In summary, the data reflects a company undergoing considerable operational and financial restructuring across the period, with declining profitability and operating cash generation, aggressive asset impairment and restructuring charges, fluctuating capital expenditures and investment activity, and significant debt management changes. The large reduction in liquidity at the end of 2019 suggests exceptional cash demands or distributions impacting financial flexibility.

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DuPont de Nemours Inc. (NYSE:DD)

Cash Flow Statement