PayPal Holdings, Inc. Unaudited Condensed Consolidated Statements of Cash Flows Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (In millions) (1) Cash flows from operating activities : Net income (loss) $ 921 $ 801 $ 2,419 $ 4,169 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Transaction and credit losses 388 350 1,572 1,060 Depreciation and amortization 326 326 1,317 1,265 Stock-based compensation 294 318 1,261 1,376 Deferred income taxes (273) (307) (811) (482) Net (gains) losses on strategic investments 141 290 304 (46) Other (362) 8 205 100 Changes in assets and liabilities: Accounts receivable (74) (67) (163) (222) Accounts payable 20 19 (35) (31) Income taxes payable 264 55 373 73 Other assets and liabilities (54) (153) (629) (1,465) Net cash provided by operating activities 1,591 1,640 5,813 5,797 (1) Cash flows from investing activities : Purchases of property and equipment (158) (213) (706) (908) Proceeds from sales of property and equipment — 2 5 5 Purchases and originations of loans receivable (9,003) (5,179) (28,170) (13,420) Principal repayment of loans receivable 7,739 4,228 24,903 11,826 Purchases of investments (3,764) (9,211) (20,219) (40,116) Maturities and sales of investments 6,641 9,308 23,411 39,698 Acquisitions, net of cash and restricted cash acquired — (2,294) — (2,763) Funds receivable (1,728) 230 (2,813) 193 Collateral posted related to derivative instruments, net (16) 1 (19) 336 Other investing activities 157 — 187 — Net cash used in investing activities (132) (3,128) (3,421) (5,149) (1) Cash flows from financing activities : Proceeds from issuance of common stock 57 72 143 162 Purchases of treasury stock (1,010) (1,500) (4,199) (3,373) Tax withholdings related to net share settlements of (15) (58) (336) (1,036) equity awards Borrowings under financing arrangements 129 272 3,475 272 Repayments under financing arrangements — (361) (1,686) (361) Funds payable and amounts due to customers 2,157 997 1,498 3,572 Collateral received related to derivative instruments, net (443) 122 (6) 207 Other financing activities — — 1 — Net cash provided by (used in) financing activities 875 (456) (1,110) (557) Effect of exchange rate changes on cash, cash equivalents, 98 4 (155) (102) and restricted cash Net change in cash, cash equivalents, and restricted cash 2,432 (1,940) 1,127 (11) Cash, cash equivalents, and restricted cash at beginning of 16,724 19,969 18,029 18,040 period Cash, cash equivalents, and restricted cash at end of period $ 19,156 $ 18,029 $ 19,156 $ 18,029 Supplemental cash flow disclosures: Cash paid for interest $ 166 $ 110 $ 280 $ 231 Cash paid for income taxes, net $ 212 $ 38 $ 878 $ 474 (1) Beginning with the fourth quarter of 2022, we reclassified certain cash flows related to our collateral security arrangements for derivative instruments from cash flows from operating activities to cash flows from investing activities and cash flows from financing activities within the condensed consolidated statements of cash flows. See the section titled "Cash Flow Reclassification" for further details. Q4 & FY 2022 Results 12