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 analysis of cash flow trends from 2015 to 2019 reveals a period of significant structural transition and volatility, culminating in a sharp contraction of liquidity. While the organization maintained strong operating cash flows in the early part of the period, a marked decline is observed by 2019, coinciding with substantial corporate distributions and strategic reorganizations.

Operating Cash Flow Trends: Cash provided by operating activities exhibited a volatile trajectory, peaking at 8,695 million US$ in 2017 before falling precipitously to 1,409 million US$ in 2019. This decline mirrors a severe contraction in net income, which dropped from 7,783 million US$ in 2015 to only 600 million US$ in 2019. Depreciation and amortization served as a consistent non-cash offset, peaking at 5,918 million US$ in 2018, which helped sustain operating cash flows despite falling profitability.
Investing Activities and Capital Expenditure: Investing activities were characterized by extreme fluctuations. A significant net inflow of 4,274 million US$ was recorded in 2017, driven largely by 4,005 million US$ acquired in a merger transaction and 2,959 million US$ from the sale of property and businesses. In contrast, other years saw consistent net outflows. Capital expenditures remained relatively stable between 3,570 million US$ and 3,837 million US$ from 2015 to 2018, before decreasing to 2,472 million US$ in 2019, suggesting a reduction in capital intensity toward the end of the period.
Financing Activities and Shareholder Returns: Financing activities resulted in net cash outflows throughout the five-year period, with a massive acceleration in 2019. The organization maintained a consistent policy of returning capital to shareholders through dividends and treasury stock purchases. A critical event occurred in 2019, where cash used for financing activities reached 11,550 million US$, primarily due to 7,315 million US$ in cash held by Dow and Corteva at the time of their respective distributions. Debt management was also active, highlighted by a significant issuance of 15,455 million US$ in long-term debt in 2018, followed by a repayment of 6,900 million US$ in 2019.
Overall Liquidity Position: The liquidity position strengthened considerably between 2015 and 2018, with cash and cash equivalents rising from 8,577 million US$ to a peak of 14,022 million US$. However, 2019 saw a drastic reversal; the combined impact of diminished operating cash flows and the large-scale distributions to spin-off entities resulted in a year-end cash balance of 1,577 million US$, representing a substantial reduction in the organization's cash reserve.

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DuPont de Nemours Inc. (NYSE:DD)

Cash Flow Statement