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.

Mastercard 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 income	9,930)	8,687)	6,411)	8,118)	5,859)
Amortization of customer and merchant incentives	1,586)	1,371)	1,072)	1,141)	1,235)
Depreciation and amortization	750)	726)	580)	522)	459)
(Gains) losses on equity investments, net	145)	(645)	(30)	(167)	—)
Share-based compensation	295)	273)	254)	250)	196)
Deferred income taxes	(651)	(69)	73)	(7)	(244)
Other	44)	36)	14)	24)	31)
Accounts receivable	(481)	(397)	(86)	(246)	(317)
Income taxes receivable	12)	(87)	(2)	(202)	(120)
Settlement assets	48)	390)	1,288)	(444)	(1,078)
Prepaid expenses	(2,175)	(2,087)	(1,552)	(1,661)	(1,769)
Accrued litigation and legal settlements	240)	(1)	(73)	(662)	869)
Restricted security deposits held for customers	(305)	177)	326)	290)	(6)
Accounts payable	190)	100)	26)	(42)	101)
Settlement obligations	201)	(568)	(1,242)	477)	849)
Accrued expenses	1,188)	1,355)	(114)	657)	439)
Long-term taxes payable	(121)	(52)	(37)	2)	(20)
Net change in other assets and liabilities	299)	254)	316)	133)	(261)
Changes in operating assets and liabilities	(904)	(916)	(1,150)	(1,698)	(1,313)
Adjustments to reconcile net income to net cash provided by operating activities	1,265)	776)	813)	65)	364)
Net cash provided by operating activities	11,195)	9,463)	7,224)	8,183)	6,223)
Purchases of investment securities available-for-sale	(267)	(389)	(220)	(643)	(1,300)
Purchases of investments held-to-maturity	(239)	(294)	(198)	(215)	(509)
Proceeds from sales of investment securities available-for-sale	54)	83)	361)	1,098)	604)
Proceeds from maturities of investment securities available-for-sale	211)	291)	140)	376)	379)
Proceeds from maturities of investments held-to-maturity	265)	296)	121)	383)	929)
Purchases of property and equipment	(442)	(407)	(339)	(422)	(330)
Capitalized software	(655)	(407)	(369)	(306)	(174)
Purchases of equity investments	(88)	(228)	(214)	(467)	(91)
Proceeds from sales of equity investments	7)	186)	—)	—)	—)
Acquisition of businesses, net of cash acquired	(313)	(4,436)	(989)	(1,440)	—)
Settlement of interest rate derivative contracts	—)	—)	(175)	—)	—)
Other investing activities	(3)	33)	3)	(4)	(14)
Net cash used in investing activities	(1,470)	(5,272)	(1,879)	(1,640)	(506)
Purchases of treasury stock	(8,753)	(5,904)	(4,473)	(6,497)	(4,933)
Dividends paid	(1,903)	(1,741)	(1,605)	(1,345)	(1,044)
Proceeds from debt, net	1,123)	2,024)	3,959)	2,724)	991)
Payment of debt	(724)	(650)	—)	(500)	—)
Acquisition of redeemable non-controlling interests	(4)	—)	(49)	—)	—)
Acquisition of non-controlling interest	—)	(133)	—)	—)	—)
Contingent consideration paid	—)	(64)	—)	(199)	—)
Tax withholdings related to share-based payments	(141)	(133)	(150)	(161)	(80)
Cash proceeds from exercise of stock options	90)	61)	97)	126)	104)
Other financing activities	(16)	(15)	69)	(15)	(4)
Net cash used in financing activities	(10,328)	(6,555)	(2,152)	(5,867)	(4,966)
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	(103)	(153)	257)	(44)	(6)
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	(706)	(2,517)	3,450)	632)	745)
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period	9,902)	12,419)	8,969)	8,337)	7,592)
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period	9,196)	9,902)	12,419)	8,969)	8,337)

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).

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Cash flow statement item	Description	The company
Net 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.	Mastercard Inc. net cash provided by operating activities increased from 2020 to 2021 and from 2021 to 2022.
Net cash used in 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.	Mastercard Inc. net cash used in investing activities decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Net 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.	Mastercard Inc. net cash used in financing activities decreased from 2020 to 2021 and from 2021 to 2022.

Mastercard Inc. (NYSE:MA)

Cash Flow Statement