Stock Analysis on Net
Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

Cash Flow Statement

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.

Verizon Communications Inc., consolidated cash flow statement

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income 18,348  19,788  16,039  30,550  13,608 
Depreciation and amortization expense 16,720  16,682  17,403  16,954  15,928 
Employee retirement benefits 840  (284) (2,657) 440  2,705 
Deferred income taxes 1,553  1,232  389  (14,463) (1,063)
Provision for expected credit losses 1,380  1,588  980  1,167  1,420 
Equity in losses of unconsolidated businesses, net of dividends received 91  74  231  117  138 
Media goodwill impairment —  186  4,591  —  — 
Accounts receivable 189  (1,471) (2,667) (5,436) (5,067)
Inventories (369) (76) (324) 168  61 
Prepaid expenses and other 1,202  (2,807) 37  656  449 
Accounts payable and accrued liabilities and Other current liabilities (966) (2,359) 1,777  (335) (1,079)
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses 56  (6,713) (1,177) (4,947) (5,636)
Discretionary employee benefits contributions —  (300) (1,679) (3,411) — 
Changes in device payment plan agreement non-current receivables 558  23  (509) (579) (3,303)
Early debt extinguishment costs 129  3,604  725  —  — 
Loss on spectrum license auction 1,195  —  —  —  — 
Other, net 898  (134) (523) (1,082)
Other, net 2,780  3,493  219  (1,102) (4,385)
Adjustments to reconcile net income to net cash provided by operating activities 23,420  15,958  18,300  (5,245) 9,107 
Net cash provided by operating activities 41,768  35,746  34,339  25,305  22,715 
Capital expenditures, including capitalized software (18,192) (17,939) (16,658) (17,247) (17,059)
Acquisitions of businesses, net of cash acquired (520) (29) (230) (5,928) (3,765)
Acquisitions of wireless licenses (2,126) (898) (1,429) (583) (534)
Proceeds from dispositions of businesses —  28  —  3,614  9,882 
Other, net (2,674) 1,257  383  772  493 
Net cash used in investing activities (23,512) (17,581) (17,934) (19,372) (10,983)
Proceeds from long-term borrowings 25,822  10,079  5,967  27,707  12,964 
Proceeds from asset-backed long-term borrowings 5,635  8,576  4,810  4,290  4,986 
Repayments of long-term borrowings and finance lease obligations (9,775) (17,584) (10,923) (23,837) (19,159)
Repayments of asset-backed long-term borrowings (7,413) (6,302) (3,635) (400) — 
Dividends paid (10,232) (10,016) (9,772) (9,472) (9,262)
Net debt related costs (1,055) (1,797) (141) (3,599) — 
Change in short-term obligations, excluding current maturities —  —  (790) (170) — 
Other, net (1,657) (1,120) (893) (1,253) (2,851)
Other, net (2,712) (2,917) (1,824) (5,022) (2,851)
Net cash provided by (used in) financing activities 1,325  (18,164) (15,377) (6,734) (13,322)
Increase (decrease) in cash, cash equivalents and restricted cash 19,581  1,028  (801) (1,590)
Cash, cash equivalents and restricted cash, beginning of period 3,917  3,916  2,888  2,880  4,470 
Cash, cash equivalents and restricted cash, end of period 23,498  3,917  3,916  2,079  2,880 

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-21).

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. Verizon Communications Inc.’s net cash provided by operating activities increased from 2018 to 2019 and 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. Verizon Communications Inc.’s net cash used in investing activities increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.
Net cash provided by (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. Verizon Communications Inc.’s net cash provided by (used in) financing activities decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.