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Interest and taxes paid

The supplemental cash amounts for interest and income taxes, how they can differ from expense, and capitalized interest, with Microsoft, Walmart, Intel and Home Depot.

The short answer

Interest expense and income-tax expense on the income statement are accrual amounts. The cash actually paid for interest and for income taxes is disclosed as supplemental information on the cash flow statement, and the two pairs can differ because of timing, withholding, refunds, and interest that is capitalized into an asset rather than expensed.

Where the cash figures sit

They are usually in a short block at the bottom of the cash flow statement, or in a note, under a heading such as "supplemental disclosure of cash flow information" or "cash paid during the year." Walmart's 10-K for fiscal 2026 uses that supplemental heading and then lists income taxes paid and interest paid. Microsoft's 10-K for fiscal 2026 states that cash paid for interest on its debt was $1.5 billion in fiscal 2026, $1.6 billion in fiscal 2025 and $1.7 billion in fiscal 2024. Home Depot's 10-K for fiscal 2025 reports cash paid for interest, net of interest capitalized, and a total for income taxes paid.

Source: Walmart 10-K for fiscal 2026, filed Mar 13, 2026 · Microsoft 10-K for fiscal 2026, filed Jul 29, 2026 · Home Depot 10-K for fiscal 2025, filed Mar 18, 2026

Capitalized interest

When a company is building a long-lived asset, some of the interest cost can be added to the asset's carrying amount instead of being recorded as interest expense. The cash still went out (or the obligation was incurred), but the income statement's interest expense is lower. Intel's 10-K for 2025 states that capitalized interest is added to the cost of qualified assets and depreciated over the estimated useful life, and that interest expense is net of $1.2 billion of interest capitalized in 2025. Its cash-flow supplemental line is "Interest, net of capitalized interest." Home Depot uses the same "net of interest capitalized" wording. The cash interest figure and the expense figure are answering slightly different questions.

Source: Intel 10-K for fiscal 2025, filed Jan 23, 2026

Why cash and expense differ

Timing. Tax payments and refunds follow the tax calendar, not the fiscal-year close. Interest paid follows coupon dates.
Capitalized interest moves part of the cost into an asset, so expense can be lower than cash paid, or the cash line is shown net of the capitalized amount.
Taxes paid are often net of refunds and are sometimes broken out by jurisdiction. They are not the same number as the tax expense that produces the effective tax rate.

Common questions

Where do I find interest paid and taxes paid?

In the supplemental cash-flow disclosures, often at the bottom of the cash flow statement. Walmart lists income taxes paid and interest paid under that heading.

Why isn't interest paid equal to interest expense?

Coupon dates do not always line up with the reporting period, and some interest is capitalized into assets. Intel reports interest expense net of $1.2 billion capitalized in 2025, and shows cash interest net of capitalized interest.

Why isn't tax paid equal to tax expense?

Payments, refunds and settlements follow tax filing dates. Expense also includes deferred tax, which is not cash in the period. See deferred income taxes for that piece.

What does 'net of capitalized interest' mean?

The cash or expense amount is shown after subtracting interest added to the cost of assets under construction. Intel and Home Depot both use that wording.

Is interest paid an operating or a financing outflow?

US companies usually classify cash interest paid as an operating cash flow, and they still disclose the amount as a supplement so you can see it in one place.

Disclosures

Editor holdings: The editor holds no position in any company named on this page. As of Nov 11, 2026.
Compensation: Nobody paid for this page. No affiliate links on this page.
Sources: Each company's own SEC filings, linked next to each number.
Last updated: Nov 10, 2026

General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn't consider your situation.

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