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.

Fortinet Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income including non-controlling interests	856,600)	606,700)	488,500)	326,500)	332,200)
Stock-based compensation	217,300)	207,900)	191,700)	174,100)	162,900)
Amortization of deferred contract costs	223,300)	175,900)	137,400)	107,900)	90,900)
Depreciation and amortization	104,300)	84,400)	68,800)	61,600)	55,700)
Amortization of investment premiums (discounts)	4,400)	6,900)	1,300)	(6,000)	(600)
Loss from equity method investment	68,100)	7,600)	—)	—)	—)
Other	23,600)	7,900)	6,000)	5,700)	(900)
Accounts receivable, net	(456,700)	(72,500)	(176,400)	(96,700)	(82,000)
Inventory	(109,100)	(19,400)	(42,200)	(48,500)	(33,400)
Prepaid expenses and other current assets	(7,700)	(17,700)	(2,800)	(2,100)	4,200)
Deferred contract costs	(318,200)	(294,500)	(205,100)	(162,300)	(136,400)
Deferred tax assets	(226,400)	(94,000)	(10,500)	17,800)	(127,800)
Other assets	(35,300)	(19,000)	(4,600)	(1,300)	(3,800)
Accounts payable	105,200)	(13,100)	37,400)	7,700)	14,600)
Accrued liabilities	55,200)	49,900)	45,800)	(20,200)	8,500)
Accrued payroll and compensation	25,000)	44,000)	43,100)	(2,700)	3,500)
Other liabilities	23,500)	(700)	9,700)	(200)	(800)
Deferred revenue	1,177,500)	839,400)	495,600)	446,700)	352,100)
Changes in operating assets and liabilities, net of impact of business combinations	233,000)	402,400)	190,000)	138,200)	(1,300)
Adjustments to reconcile net income to net cash provided by operating activities	874,000)	893,000)	595,200)	481,500)	306,700)
Net cash provided by operating activities	1,730,600)	1,499,700)	1,083,700)	808,000)	638,900)
Purchases of investments	(389,100)	(2,308,000)	(1,079,000)	(1,332,300)	(681,800)
Sales of investments	3,000)	85,500)	152,200)	31,300)	42,800)
Maturities of investments	1,462,000)	1,470,300)	1,018,800)	925,500)	578,800)
Purchases of property and equipment	(281,200)	(295,900)	(125,900)	(92,200)	(53,000)
Investment in privately held company	—)	(160,000)	—)	—)	—)
Payments made in connection with business combinations, net of cash acquired	(30,800)	(74,900)	(40,200)	(34,600)	(21,700)
Purchases of marketable equity securities	—)	(42,500)	—)	—)	—)
Other	—)	400)	1,300)	—)	—)
Net cash (used in) provided by investing activities	763,900)	(1,325,100)	(72,800)	(502,300)	(134,900)
Proceeds from long-term borrowings, net of discount and underwriting fees	—)	989,400)	—)	—)	—)
Payments for debt issuance costs	—)	(2,400)	—)	—)	—)
Payments of debt assumed in connection with business combination	—)	(19,500)	(4,100)	(3,700)	(10,100)
Repurchase and retirement of common stock	(1,991,200)	(741,800)	(1,080,100)	(145,100)	(211,800)
Proceeds from issuance of common stock	26,100)	26,000)	22,100)	49,500)	86,500)
Taxes paid related to net share settlement of equity awards	(160,400)	(167,900)	(108,200)	(96,000)	(67,200)
Other	(4,800)	(1,000)	(1,300)	(300)	—)
Net cash provided by (used in) financing activities	(2,130,300)	82,800)	(1,171,600)	(195,600)	(202,600)
Effect of exchange rate changes on cash and cash equivalents	(400)	(100)	—)	—)	—)
Net increase (decrease) in cash and cash equivalents	363,800)	257,300)	(160,700)	110,100)	301,400)
Cash and cash equivalents, beginning of year	1,319,100)	1,061,800)	1,222,500)	1,112,400)	811,000)
Cash and cash equivalents, end of year	1,682,900)	1,319,100)	1,061,800)	1,222,500)	1,112,400)

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.	Fortinet Inc. net cash provided by operating activities increased from 2020 to 2021 and from 2021 to 2022.
Net cash (used in) provided by 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.	Fortinet Inc. net cash (used in) provided by investing activities decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
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.	Fortinet Inc. net cash provided by (used in) financing activities increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Fortinet Inc. (NASDAQ:FTNT)

Cash Flow Statement