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.

Union Pacific Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net income	5,919	5,966	10,712	4,233	4,772
Depreciation	2,216	2,191	2,105	2,038	2,012
Deferred and other income taxes	566	338	(5,067)	831	765
Net gain on non-operating asset dispositions	(20)	(30)	(111)	(94)	(144)
Other operating activities, net	98	347	(282)	(228)	116
Accounts receivable, net	160	(262)	(235)	98	255
Materials and supplies	(9)	7	(32)	19	(24)
Other current assets	87	(24)	9	22	(47)
Accounts payable and other current liabilities	(179)	(125)	182	232	(276)
Income and other taxes	(229)	278	(51)	374	(85)
Changes in current assets and liabilities	(170)	(126)	(127)	745	(177)
Adjustments to reconcile net income to cash provided by operating activities	2,690	2,720	(3,482)	3,292	2,572
Cash provided by operating activities	8,609	8,686	7,230	7,525	7,344
Capital investments	(3,453)	(3,437)	(3,238)	(3,505)	(4,650)
Maturities of short-term investments	130	90	90	520	—
Purchases of short-term investments	(115)	(90)	(120)	(580)	—
Proceeds from asset sales	74	63	168	129	251
Other investing activities, net	(71)	(37)	14	43	(77)
Cash used in investing activities	(3,435)	(3,411)	(3,086)	(3,393)	(4,476)
Share repurchase programs	(5,804)	(8,225)	(4,013)	(3,105)	(3,465)
Debt issued	3,986	6,892	2,735	1,983	3,328
Dividends paid	(2,598)	(2,299)	(1,982)	(1,879)	(2,344)
Debt repaid	(817)	(1,736)	(840)	(1,013)	(556)
Debt exchange	(387)	—	—	(191)	—
Net issuance of commercial paper	(6)	194	—	—	—
Other financing activities, net	(20)	(48)	(46)	(41)	(26)
Cash used in financing activities	(5,646)	(5,222)	(4,146)	(4,246)	(3,063)
Net change in cash, cash equivalents and restricted cash	(472)	53	(2)	(114)	(195)
Cash, cash equivalents, and restricted cash at beginning of year	1,328	1,275	1,277	1,391	1,586
Cash, cash equivalents, and restricted cash at end of year	856	1,328	1,275	1,277	1,391

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

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.	Union Pacific Corp.’s cash provided by operating activities increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.
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.	Union Pacific Corp.’s cash used in investing activities decreased 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.	Union Pacific Corp.’s cash used in financing activities decreased from 2017 to 2018 and from 2018 to 2019.

Union Pacific Corp. (NYSE:UNP)

Cash Flow Statement