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.

Emerson Electric Co., consolidated cash flow statement

US$ in millions

12 months ended:	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Net earnings	2,328)	2,224)	1,550)	1,664)	2,733)	2,184)
(Earnings) loss from discontinued operations, net of tax	—)	—)	125)	(45)	—)	—)
Depreciation and amortization	822)	758)	636)	568)	815)	831)
Stock compensation expense	120)	216)	110)	145)	30)	143)
Pension expense	2)	49)	127)	95)	167)	153)
Pension funding	(60)	(61)	(45)	(66)	(53)	(130)
Transition impact of Tax Act	—)	(189)	—)	—)	—)	—)
Gains on divestitures of businesses, after tax	—)	—)	—)	—)	(611)	—)
Income taxes paid on divestiture gains	—)	—)	—)	—)	(424)	—)
Goodwill impairment, after tax	—)	—)	—)	—)	—)	508)
Receivables	51)	(189)	(25)	162)	304)	(263)
Inventories	(87)	17)	32)	58)	(16)	(132)
Other current assets	(87)	(28)	(12)	(4)	(101)	59)
Accounts payable	(37)	115)	135)	(22)	(287)	294)
Accrued expenses	10)	2)	30)	(101)	(42)	156)
Changes in operating working capital	(150)	(83)	160)	93)	(142)	114)
Other, net	(56)	(22)	27)	45)	14)	(111)
Adjustments to reconcile net earnings to net cash provided by operating activities	828)	751)	855)	787)	(62)	1,394)
Cash provided by operating activities	3,006)	2,892)	2,690)	2,499)	2,529)	3,692)
Capital expenditures	(594)	(617)	(476)	(447)	(685)	(767)
Purchases of businesses, net of cash and equivalents acquired	(469)	(2,203)	(2,990)	(132)	(324)	(610)
Divestitures of businesses	14)	201)	39)	—)	1,812)	363)
Other, net	(125)	(101)	(106)	30)	(212)	(145)
Cash (used in) provided by investing activities	(1,174)	(2,720)	(3,533)	(549)	591)	(1,159)
Net increase (decrease) in short-term borrowings	(6)	343)	(1,635)	(34)	1,116)	180)
Proceeds from short-term borrowings greater than three months	—)	—)	—)	1,264)	2,515)	2,952)
Payments of short-term borrowings greater than three months	—)	—)	(90)	(1,174)	(3,286)	(2,510)
Proceeds from long-term debt	1,691)	—)	—)	—)	1,000)	1)
Payments on long-term debt	(656)	(241)	(254)	(254)	(504)	(329)
Dividends paid	(1,209)	(1,229)	(1,239)	(1,227)	(1,269)	(1,210)
Purchases of common stock	(1,250)	(1,000)	(400)	(601)	(2,501)	(1,048)
Purchase of noncontrolling interests	—)	—)	—)	—)	—)	(574)
Other, net	39)	35)	27)	(19)	(19)	(21)
Cash used in financing activities	(1,391)	(2,092)	(3,591)	(2,045)	(2,948)	(2,559)
Cash from discontinued operating activities	—)	—)	(778)	382)	—)	—)
Cash from discontinued investing activities	—)	—)	5,047)	(77)	—)	—)
Cash from discontinued operations	—)	—)	4,269)	305)	—)	—)
Effect of exchange rate changes on cash and equivalents	(40)	(49)	45)	(82)	(267)	(100)
Increase (decrease) in cash and equivalents	401)	(1,969)	(120)	128)	(95)	(126)
Beginning cash and equivalents	1,093)	3,062)	3,182)	3,054)	3,149)	3,275)
Ending cash and equivalents	1,494)	1,093)	3,062)	3,182)	3,054)	3,149)

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

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Cash flow statement item	Description	The company
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.	Emerson Electric Co. cash provided by operating activities increased from 2017 to 2018 and from 2018 to 2019.
Cash (used in) provided by 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.	Emerson Electric Co. cash (used in) provided by investing activities increased from 2017 to 2018 and from 2018 to 2019.
Cash 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.	Emerson Electric Co. cash used in financing activities increased from 2017 to 2018 and from 2018 to 2019.

Emerson Electric Co. (NYSE:EMR)

Cash Flow Statement