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.

International Business Machines Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	7,502)	1,639)	5,743)	5,590)	9,431)
Pension settlement charge	—)	5,894)	—)	—)	—)
Depreciation	2,109)	2,407)	3,888)	4,227)	4,209)
Amortization of capitalized software and acquired intangible assets	2,287)	2,395)	2,529)	2,468)	1,850)
Stock-based compensation	1,133)	987)	982)	937)	679)
Deferred taxes	(1,114)	(2,726)	(2,001)	(3,203)	(1,527)
Net (gain) loss on asset sales and other	(170)	(122)	(307)	(71)	(1,097)
Receivables, including financing receivables	725)	(539)	1,372)	5,297)	502)
Retirement related	(462)	331)	1,038)	936)	301)
Inventory	390)	71)	138)	(209)	67)
Other assets/other liabilities	1,466)	(115)	(671)	2,087)	858)
Accounts payable	65)	213)	85)	138)	(503)
Changes in operating assets and liabilities, net of acquisitions/divestitures	2,184)	(39)	1,962)	8,249)	1,225)
Adjustments to reconcile net income to cash provided by operating activities	6,429)	8,796)	7,053)	12,607)	5,339)
Net cash provided by operating activities	13,931)	10,435)	12,796)	18,197)	14,770)
Payments for property, plant and equipment	(1,245)	(1,346)	(2,062)	(2,618)	(2,286)
Proceeds from disposition of property, plant and equipment	321)	111)	387)	188)	537)
Investment in software	(565)	(626)	(706)	(612)	(621)
Purchases of marketable securities and other investments	(11,142)	(5,930)	(3,562)	(6,246)	(3,693)
Proceeds from disposition of marketable securities and other investments	10,647)	4,665)	3,147)	5,618)	3,961)
Non-operating finance receivables, net	—)	—)	—)	475)	6,720)
Acquisition of businesses, net of cash acquired	(5,082)	(2,348)	(3,293)	(336)	(32,630)
Divestiture of businesses, net of cash transferred	(4)	1,272)	114)	503)	1,076)
Net cash used in investing activities	(7,070)	(4,202)	(5,975)	(3,028)	(26,936)
Proceeds from new debt	9,586)	7,804)	522)	10,504)	31,825)
Payments to settle debt	(5,082)	(6,800)	(8,597)	(13,365)	(12,944)
Short-term borrowings (repayments) less than 90 days, net	(7)	217)	(40)	(853)	(2,597)
Common stock repurchases	—)	—)	—)	—)	(1,361)
Common stock repurchases for tax withholdings	(402)	(407)	(319)	(302)	(272)
Financing, other	176)	176)	70)	92)	98)
Distribution from Kyndryl	—)	—)	879)	—)	—)
Cash dividends paid	(6,040)	(5,948)	(5,869)	(5,797)	(5,707)
Net cash provided by (used in) financing activities	(1,769)	(4,958)	(13,354)	(9,721)	9,042)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	9)	(244)	(185)	(87)	(166)
Net change in cash, cash equivalents and restricted cash	5,101)	1,031)	(6,718)	5,361)	(3,290)
Cash, cash equivalents and restricted cash at January 1	7,988)	6,957)	13,675)	8,314)	11,604)
Cash, cash equivalents and restricted cash at December 31	13,089)	7,988)	6,957)	13,675)	8,314)

Based on: 10-K (reporting date: 2023-12-31), 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).

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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.	International Business Machines Corp. net cash provided by operating activities decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
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.	International Business Machines Corp. net cash used in investing activities increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
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.	International Business Machines Corp. net cash provided by (used in) financing activities increased from 2021 to 2022 and from 2022 to 2023.

International Business Machines Corp. (NYSE:IBM)

Cash Flow Statement