Cash Flow Statement

Beginner level

The cash flow statement provides information about a company’s 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’s 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.

Norfolk Southern Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Net income	2,013	2,722	2,666	5,404	1,668
Depreciation	1,154	1,139	1,104	1,059	1,030
Deferred income taxes	142	330	173	(2,859)	227
Gains and losses on properties	(39)	(42)	(171)	(92)	(46)
Loss on asset disposal	385	—	—	—	—
Impairment of investment	99	—	—	—	—
Accounts receivable	71	87	(70)	(41)	23
Materials and supplies	23	(37)	15	35	42
Other current assets	3	(4)	(46)	(71)	82
Current liabilities other than debt	34	(185)	223	135	158
Changes in assets and liabilities affecting operations	131	(139)	122	58	305
Other, net	(248)	(118)	(168)	(317)	(150)
Reconciliation of net income to net cash provided by operating activities	1,624	1,170	1,060	(2,151)	1,366
Net cash provided by operating activities	3,637	3,892	3,726	3,253	3,034
Property additions	(1,494)	(2,019)	(1,951)	(1,723)	(1,887)
Property sales and other transactions	333	377	204	202	130
Investment purchases	(13)	(18)	(10)	(7)	(123)
Investment sales and other transactions	(1)	(104)	99	47	48
Net cash used in investing activities	(1,175)	(1,764)	(1,658)	(1,481)	(1,832)
Dividends	(960)	(949)	(844)	(703)	(695)
Common Stock transactions	69	27	40	89	57
Purchase and retirement of Common Stock	(1,439)	(2,099)	(2,781)	(1,012)	(803)
Proceeds from borrowings, net of issuance costs	784	2,192	2,023	290	694
Debt repayments	(381)	(1,188)	(750)	(702)	(600)
Other	—	23	—	—	—
Net cash used in financing activities	(1,927)	(1,994)	(2,312)	(2,038)	(1,347)
Net increase (decrease) in cash, cash equivalents, and restricted cash	535	134	(244)	(266)	(145)
Cash, cash equivalents, and restricted cash, at beginning of year	580	446	690	956	1,101
Cash, cash equivalents, and restricted cash, at end of year	1,115	580	446	690	956

Based on: 10-K (filing date: 2021-02-04), 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-05), 10-K (filing date: 2017-02-06).

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.	Norfolk Southern Corp.’s net cash provided by operating activities increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.
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.	Norfolk Southern Corp.’s net cash used in investing activities decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 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.	Norfolk Southern Corp.’s net cash used in financing activities increased from 2018 to 2019 and from 2019 to 2020.

Norfolk Southern Corp. (NYSE:NSC)

Cash Flow Statement