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.

Carrier Global Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income from operations	3,584)	1,701)	2,006)
Depreciation and amortization	380)	338)	336)
Deferred income tax provision	(124)	(74)	97)
Stock-based compensation cost	77)	92)	77)
Equity method investment net earnings	(262)	(249)	(207)
Impairment charge on minority-owned joint venture investments	—)	2)	72)
Gain on extinguishment of debt	(36)	—)	—)
(Gain) loss on sale of investments	(1,815)	2)	(1,123)
Accounts receivable, net	(145)	(97)	49)
Contract assets, current	(51)	(47)	(9)
Inventories, net	(334)	(408)	(240)
Other assets, current	104)	(11)	3)
Accounts payable and accrued liabilities	61)	829)	237)
Contract liabilities, current	29)	51)	46)
Changes in operating assets and liabilities	(336)	317)	86)
Defined benefit plan contributions	(16)	(47)	(41)
Distributions from equity method investments	148)	159)	169)
Other operating activities, net	143)	(4)	220)
Adjustments to reconcile net income from operations to net cash flows from operating activities	(1,841)	536)	(314)
Net cash flows provided by operating activities	1,743)	2,237)	1,692)
Capital expenditures	(353)	(344)	(312)
Proceeds on sale of investments	—)	7)	1,377)
Investment in businesses, net of cash acquired	(506)	(366)	—)
Dispositions of businesses	2,902)	—)	—)
Settlement of derivative contracts, net	(194)	4)	40)
Payment to former shareholders of TCC	(104)	—)	—)
Other investing activities, net	—)	7)	1)
Net cash flows (used in) provided by investing activities	1,745)	(692)	1,106)
Increase (decrease) in short-term borrowings, net	(140)	13)	(23)
Issuance of long-term debt	432)	140)	11,784)
Repayment of long-term debt	(1,275)	(704)	(1,911)
Repurchases of common stock	(1,380)	(527)	—)
Dividends paid on common stock	(509)	(417)	(138)
Dividends paid to non-controlling interest	(46)	(42)	(48)
Net transfers to UTC	—)	—)	(10,359)
Other financing activities, net	(13)	(25)	14)
Net cash flows used in financing activities	(2,931)	(1,562)	(681)
Effect of foreign exchange rate changes on cash and cash equivalents	(56)	(16)	45)
Net increase (decrease) in cash and cash equivalents and restricted cash, including cash classified in current assets held for sale	501)	(33)	2,162)
Change in cash balances classified as assets held for sale	—)	(60)	—)
Net increase (decrease) in cash and cash equivalents and restricted cash	501)	(93)	2,162)
Cash, cash equivalents and restricted cash, beginning of period	3,026)	3,119)	957)
Cash, cash equivalents and restricted cash, end of period	3,527)	3,026)	3,119)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Cash flow statement item	Description	The company
Net cash flows 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.	Carrier Global Corp. net cash flows provided by operating activities increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.
Net cash flows (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.	Carrier Global Corp. net cash flows (used in) provided by investing activities decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Net cash flows 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.	Carrier Global Corp. net cash flows used in financing activities decreased from 2020 to 2021 and from 2021 to 2022.

Carrier Global Corp. (NYSE:CARR)

Cash Flow Statement