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.

PayPal Holdings 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	2,419)	4,169)	4,202)	2,459)	2,057)
Transaction and credit losses	1,572)	1,060)	1,741)	1,380)	1,274)
Depreciation and amortization	1,317)	1,265)	1,189)	912)	776)
Stock-based compensation	1,261)	1,376)	1,376)	1,021)	853)
Deferred income taxes	(811)	(482)	165)	(269)	(171)
Cost basis adjustments to loans and interest receivable held for sale	—)	—)	—)	—)	244)
Net (gains) losses on strategic investments	304)	(46)	(1,914)	(207)	(86)
Other	205)	100)	47)	(150)	(86)
Accounts receivable	(163)	(222)	(100)	(120)	(59)
Changes in loans and interest receivable held for sale, net	—)	—)	—)	4)	1,407)
Transaction loss allowance for cash losses, net	(1,230)	(1,178)	(1,120)	(1,079)	(1,046)
Funds receivable	—)	—)	—)	(9)	(19)
Other current assets and non-current assets	118)	(150)	(498)	(566)	(93)
Accounts payable	(35)	(31)	(4)	4)	26)
Funds payable and amounts due to customers	—)	—)	—)	499)	22)
Income taxes payable	373)	73)	(230)	(40)	(44)
Other current liabilities and non-current liabilities	483)	406)	1,000)	722)	428)
Changes in assets and liabilities	(454)	(1,102)	(952)	(585)	622)
Adjustments to reconcile net income to net cash provided by operating activities	3,394)	2,171)	1,652)	2,102)	3,426)
Net cash provided by operating activities	5,813)	6,340)	5,854)	4,561)	5,483)
Purchases of property and equipment	(706)	(908)	(866)	(704)	(823)
Proceeds from sales of property and equipment	5)	5)	120)	17)	3)
Purchases and originations of loans receivable	(28,170)	(13,420)	(6,098)	(1,631)	—)
Principal repayment of loans receivable	24,903)	11,826)	6,392)	—)	3,121)
Purchases of investments	(20,219)	(40,116)	(41,513)	(27,881)	(22,381)
Maturities and sales of investments	23,411)	39,698)	30,908)	24,878)	21,898)
Acquisitions, net of cash and restricted cash acquired	—)	(2,763)	(3,609)	(70)	(2,124)
Funds receivable	(2,813)	193)	(1,552)	(342)	1,146)
Collateral posted related to derivative instruments, net	(19)	—)	—)	—)	—)
Other investing activities	187)	—)	—)	—)	—)
Net cash (used in) provided by investing activities	(3,421)	(5,485)	(16,218)	(5,733)	840)
Proceeds from issuance of common stock	143)	162)	137)	138)	144)
Purchases of treasury stock	(4,199)	(3,373)	(1,635)	(1,411)	(3,520)
Tax withholdings related to net share settlements of equity awards	(336)	(1,036)	(521)	(504)	(419)
Borrowings under financing arrangements	3,475)	272)	6,966)	5,471)	2,075)
Repayments under financing arrangements	(1,686)	(361)	(3,000)	(2,516)	(1,115)
Funds payable and amounts due to customers	1,498)	3,572)	10,597)	2,510)	1,573)
Collateral received related to derivative instruments, net	(6)	—)	—)	—)	—)
Other financing activities	1)	—)	(52)	—)	—)
Net cash provided by (used in) financing activities	(1,110)	(764)	12,492)	3,688)	(1,262)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(155)	(102)	169)	(6)	(113)
Net change in cash, cash equivalents, and restricted cash	1,127)	(11)	2,297)	2,510)	4,948)
Cash, cash equivalents, and restricted cash at beginning of period	18,029)	18,040)	15,743)	13,233)	8,285)
Cash, cash equivalents, and restricted cash at end of period	19,156)	18,029)	18,040)	15,743)	13,233)

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

PayPal Holdings Inc. (NASDAQ:PYPL)

Cash Flow Statement