Name: Fidelity National Information Services Inc. (NYSE:FIS) | Cash Flow Statement
Creator: Stock Analysis on Net

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.

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Fidelity National Information Services Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net earnings (loss)	(16,708)	424)	164)	303)	881)
Depreciation and amortization	3,846)	4,015)	3,714)	2,444)	1,420)
Amortization of debt issue costs	31)	30)	31)	24)	17)
Acquisition-related financing foreign exchange	—)	—)	—)	(125)	—)
Asset impairments	17,709)	202)	136)	87)	95)
(Gain) loss on sale of businesses, investments and other	(53)	(227)	9)	18)	50)
Loss on extinguishment of debt	—)	528)	—)	217)	1)
Stock-based compensation	215)	383)	283)	402)	84)
Deferred income taxes	(544)	(81)	(206)	(109)	(116)
Trade and other receivables	(155)	(552)	(75)	(161)	78)
Settlement activity	287)	653)	862)	(165)	9)
Prepaid expenses and other assets	(319)	(526)	(278)	(112)	(16)
Deferred contract costs	(479)	(453)	(473)	(379)	(248)
Deferred revenue	21)	23)	58)	40)	(100)
Accounts payable, accrued liabilities, and other liabilities	88)	391)	217)	(74)	(162)
Net changes in assets and liabilities, net of effects from acquisitions and foreign currency	(557)	(464)	311)	(851)	(439)
Adjustment to reconcile net earnings (loss) to net cash provided by operating activities	20,647)	4,386)	4,278)	2,107)	1,112)
Net cash provided by operating activities	3,939)	4,810)	4,442)	2,410)	1,993)
Additions to property and equipment	(268)	(320)	(263)	(200)	(127)
Additions to software	(1,122)	(931)	(866)	(628)	(495)
Acquisitions, net of cash acquired	—)	(767)	(469)	(6,632)	—)
Net proceeds from sale of businesses and investments	50)	370)	—)	49)	(16)
Settlement of net investment hedge cross-currency interest rate swaps	726)	(24)	—)	—)	—)
Proceeds from sale of Visa preferred stock	269)	—)	552)	—)	—)
Other investing activities, net	(28)	(99)	132)	(90)	(30)
Net cash used in investing activities	(373)	(1,771)	(914)	(7,501)	(668)
Borrowings	75,335)	54,073)	47,695)	33,352)	26,371)
Repayment of borrowings and other financing obligations	(74,410)	(53,440)	(49,067)	(24,672)	(26,148)
Debt issuance costs	(23)	(74)	—)	(101)	(30)
Net proceeds from stock issued under stock-based compensation plans	57)	121)	332)	161)	288)
Treasury stock activity	(1,938)	(2,114)	(112)	(453)	(1,255)
Dividends paid	(1,138)	(961)	(868)	(656)	(421)
Payments on contingent value rights	(245)	—)	(691)	—)	—)
Payments on tax receivable agreement	(185)	(85)	(32)	—)	—)
Other financing activities, net	(26)	(58)	(8)	(50)	(41)
Net cash provided by (used in) financing activities	(2,573)	(2,538)	(2,751)	7,581)	(1,236)
Effect of foreign currency exchange rate changes on cash	(463)	(248)	42)	18)	(51)
Net increase (decrease) in cash, cash equivalents and restricted cash	530)	253)	819)	2,508)	38)
Cash, cash equivalents and restricted cash, beginning of year	4,283)	4,030)	3,211)	703)	665)
Cash, cash equivalents and restricted cash, end of year	4,813)	4,283)	4,030)	3,211)	703)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Operating cash flows demonstrate a general upward trajectory from 2018 through 2021, followed by a decline in 2022. While net earnings were positive from 2018 to 2021, a substantial net loss of 16,708 million US$ was recorded in 2022. This loss was primarily driven by non-cash asset impairments totaling 17,709 million US$, which significantly inflated the adjustments to reconcile net earnings to operating cash flow. Despite the reported net loss in 2022, net cash provided by operating activities remained positive at 3,939 million US$, though this represents a decrease from the 4,810 million US$ peak in 2021.

Operating Activity Trends: Depreciation and amortization expenses grew steadily from 1,420 million US$ in 2018 to a peak of 4,015 million US$ in 2021. Stock-based compensation peaked in 2021 at 383 million US$ before decreasing in 2022. Working capital fluctuations were mixed, with deferred contract costs consistently representing a cash outflow, ranging from 248 million US$ in 2018 to 479 million US$ in 2022.
Investing Activity and Capital Expenditure: Investing activities are characterized by consistent capital expenditures in technology. Additions to software increased annually, rising from 495 million US$ in 2018 to 1,122 million US$ in 2022. A significant cash outflow occurred in 2019 due to acquisitions totaling 6,632 million US$. Overall, net cash used in investing activities fluctuated, reaching a high of 7,501 million US$ in 2019 and decreasing to 373 million US$ by 2022.
Financing and Shareholder Returns: Financing activities show a commitment to shareholder returns through dividends and share repurchases. Dividends paid increased every year, growing from 421 million US$ in 2018 to 1,138 million US$ in 2022. Treasury stock activity remained significant, with outflows of 2,114 million US$ in 2021 and 1,938 million US$ in 2022. The company utilized a revolving strategy of high-volume borrowing and repayment, with 2022 seeing 75,335 million US$ in new borrowings and 74,410 million US$ in repayments.
Liquidity Position: The cash and restricted cash position improved consistently over the five-year period. Starting at 703 million US$ at the end of 2018, the balance grew to 4,813 million US$ by the end of 2022. This increase was supported by strong operating cash flows and a substantial financing inflow in 2019, offset partially by the effects of foreign currency exchange rate changes, which became more negative in 2021 and 2022.

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