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.

Kellanova, consolidated cash flow statement

US$ in millions

12 months ended:	Dec 30, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
Net income	964)	962)	1,495)	1,264)	977)
Depreciation and amortization	419)	478)	467)	479)	484)
Postretirement benefit plan expense (benefit)	53)	240)	(392)	(77)	(89)
Deferred income taxes	(21)	(46)	125)	69)	47)
Stock compensation	95)	96)	68)	76)	56)
Loss on Russia Divestiture	113)	—)	—)	—)	—)
Other	40)	(42)	(44)	(21)	96)
Tax payment related to divestitures	—)	—)	—)	—)	(255)
Postretirement benefit plan contributions	(42)	(23)	(20)	(32)	(28)
Trade receivables	(42)	(257)	(9)	75)	(145)
Inventories	139)	(411)	(135)	(54)	2)
Accounts payable	(340)	411)	194)	(9)	(9)
All other current assets and liabilities	267)	243)	(48)	216)	40)
Changes in operating assets and liabilities, net of acquisitions and divestitures	24)	(14)	2)	228)	(112)
Adjustments to reconcile net income to operating cash flows	681)	689)	206)	722)	199)
Net cash provided by operating activities	1,645)	1,651)	1,701)	1,986)	1,176)
Additions to properties	(677)	(488)	(553)	(505)	(586)
Issuance of notes receivable	(4)	(22)	(28)	(19)	(30)
Repayments from notes receivable	—)	10)	28)	14)	5)
Purchases of marketable securities	—)	—)	—)	(250)	—)
Sales of marketable securities	—)	—)	—)	250)	—)
Settlement of net investment hedges	68)	37)	19)	—)	—)
Investments in unconsolidated entities	—)	—)	(10)	—)	—)
Purchases of available for sale securities	(15)	(17)	(61)	(81)	(18)
Sales of available for sale securities	64)	19)	72)	19)	83)
Other	2)	13)	5)	(13)	1,320)
Net cash (used in) provided by investing activities	(562)	(448)	(528)	(585)	774)
Net increase (reduction) of notes payable, with maturities less than or equal to 90 days	(356)	337)	(27)	(16)	(18)
Issuances of notes payable, with maturities greater than 90 days	35)	28)	73)	44)	62)
Reductions of notes payable, with maturities greater than 90 days	(25)	(35)	(63)	(34)	(69)
Issuances of long-term debt	404)	39)	361)	557)	80)
Reductions of long-term debt	(780)	(648)	(650)	(1,229)	(1,009)
Debt redemption costs	—)	—)	—)	(20)	(17)
Net issuances of common stock	60)	277)	63)	112)	64)
Common stock repurchases	(170)	(300)	(240)	—)	(220)
Cash dividends	(800)	(797)	(788)	(782)	(769)
Proceeds received from debt issued and retained by WK Kellogg Co	663)	—)	—)	—)	—)
Cash retained by WK Kellogg Co at separation	(78)	—)	—)	—)	—)
Other	(63)	18)	(35)	(20)	(9)
Net cash used in financing activities	(1,110)	(1,081)	(1,306)	(1,388)	(1,905)
Effect of exchange rate changes on cash and cash equivalents	2)	(109)	(16)	25)	31)
Increase (decrease) in cash and cash equivalents	(25)	13)	(149)	38)	76)
Cash and cash equivalents at beginning of period	299)	286)	435)	397)	321)
Cash and cash equivalents at end of period	274)	299)	286)	435)	397)

Based on: 10-K (reporting date: 2023-12-30), 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: 2019-12-28).

Over the analyzed periods, net income showed an overall upward trend from 2019 through 2021, increasing from $977 million to $1,495 million, followed by a decline in 2022 and stable performance in 2023 around $960 million. Depreciation and amortization expenses remained relatively stable, slightly decreasing from 484 to 419 million over the five-year span.

Postretirement benefit plan expense exhibited volatility, with negative expenses in the early years turning positive in 2022 and 2023, indicating increased costs associated with these benefits in recent years. Deferred income taxes fluctuated as well, showing positive balances initially but turning negative in the last two years, suggesting variations in tax timing differences or valuations.

Stock compensation expenses gradually increased, reaching a peak of $96 million in 2022 before slightly decreasing. The company recorded a loss related to the Russia divestiture of $113 million in 2023, which is a notable one-time charge impacting financials that year. Other operating adjustments fluctuated with negative values in 2020 through 2022 but improved to a positive amount in 2023.

Working capital components revealed mixed trends. Trade receivables and inventories saw significant fluctuations, with inventories turning notably negative in 2020 through 2022 before rebounding in 2023. Accounts payable increased markedly in 2021 and 2022 before reversing to a negative change in 2023, reflecting possible shifts in payment terms or timing. Other current assets and liabilities also exhibited volatility but ended on an upward note in 2023.

Operating cash flows remained strong throughout the period, peaking in 2020 at nearly $2 billion before slightly diminishing and stabilizing around $1.6 billion in the last three years. Additions to properties fluctuated, with a notable increase in capital expenditures in 2023, indicating higher investment in property and equipment.

Investing activities mostly resulted in cash outflows except for 2019. Notably, sales and purchases of marketable and available-for-sale securities contributed to variations within this category. Settlement of net investment hedges showed an increasing inflow from 2021 onward. Investments in unconsolidated entities had a minor negative impact in 2021.

Financing activities mostly reflected cash outflows each year, driven primarily by reductions in long-term debt and consistent cash dividends, which increased slightly over time. Issuances of long-term debt were relatively volatile, with a significant issuance in 2020 and another spike in 2023. Common stock repurchases were sizeable but decreased notably in 2023. Net issuances of common stock fluctuated without a clear trend.

The company experienced variable short-term debt activity, with increases in notes payable with maturities less than or equal to 90 days in 2022 followed by a decrease in 2023. Debt redemption costs ceased to appear after 2020.

Cash and cash equivalents at the end of the period displayed fluctuations, increasing early in the timeframe but declining in recent years. The effect of exchange rate changes on cash and cash equivalents was variable, with a slight positive impact in most years except for 2021 and 2022, where a negative effect was recorded.

Overall, the data suggests steady operating cash flow generation despite fluctuations in net income in the latter years and ongoing investment and financing activities to support operations and capital structure. The company’s management of working capital, capital expenditures, and debt appears active, with strategic divestitures and stockholder returns maintained consistently through dividends and buybacks.

Net Income: Increased from 2019 to 2021, then declined and stabilized in 2022-2023.
Depreciation and Amortization: Remained stable with a slight decline by 2023.
Postretirement Benefit Expense: Shifted from a benefit to an expense, rising significantly in recent years.
Deferred Income Taxes: Fluctuated, turning negative in the last two years.
Operating Cash Flow: Strong flow peaking in 2020, later slightly declining but stable around $1.6 billion.
Capital Expenditures: Variable, with a notable increase in 2023.
Investing Activities: Generally cash outflows except in early years; impacted by securities transactions and hedges.
Financing Activities: Consistent net cash outflows driven mainly by debt repayments, dividends, and repurchases.
Cash and Cash Equivalents: Fluctuated but decreased overall in the last two years.

AI Ask an analyst for more

Download chart

Kellanova (NYSE:K)

Cash Flow Statement