Learn · Explainer

Restricted cash

Cash that is not freely usable, how it can sit in other assets, and why the cash flow statement still includes it, with Intel and Apple.

The short answer

Restricted cash is cash that cannot be used freely, often because it is collateral or is held under a legal or contractual limit. It may sit in 'other assets' on the balance sheet rather than in the main cash line, but the cash flow statement still folds it into the beginning and ending cash total.

What makes cash restricted

Intel's 10-K for 2025 is a direct example. It reports $447 million of restricted cash included in other long-term assets on the balance sheet as of December 27, 2025, and included within cash, cash equivalents, and restricted cash on the statement of cash flows. The same note says the restricted cash serves as collateral for third-party arrangements and is considered legally restricted because of limits on usage and withdrawal. The cash exists; it is just not available for general spending.

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

How the cash flow statement treats it

Current US presentation rules require the cash flow statement's beginning and ending totals to include restricted cash, not only the unrestricted cash-and-cash-equivalents line from the balance sheet. That is why you often see a heading such as "cash, cash equivalents, and restricted cash" on the statement, and a short reconciliation to the balance-sheet lines. Apple's fiscal 2026 10-K uses the heading "Cash, cash equivalents, and restricted cash and cash equivalents, ending balances" on its cash flow statement. If restricted cash is classified as a long-term asset, the change in the cash total can include an amount that is not in current assets.

Source: Apple 10-K for fiscal 2026, filed Nov 3, 2026

How this relates to cash and cash equivalents

Cash and cash equivalents is the unrestricted balance-sheet line: currency, demand deposits and highly liquid investments that mature in three months or less from purchase. Restricted cash is a separate idea. A company can have a large cash-and-equivalents balance and still have an additional amount locked up as collateral, or it can show only a small restricted balance, as Intel does relative to its overall cash.

Common questions

What is restricted cash?

Cash the company cannot use freely, often because it is collateral or is subject to a legal or contractual limit on withdrawal. Intel describes $447 million of restricted cash used as collateral as of December 27, 2025.

Where does it sit on the balance sheet?

Sometimes in current assets, sometimes in other long-term assets. Intel includes its restricted cash in other long-term assets.

Why is it in the cash flow statement total?

Presentation rules require the cash flow statement to include restricted cash in the beginning and ending cash totals. Intel says the $447 million is included within cash, cash equivalents, and restricted cash on that statement.

Is restricted cash part of cash and cash equivalents?

Not necessarily. Cash and cash equivalents is the freely usable line. Restricted cash is often presented separately on the balance sheet and then added back in the cash-flow total or a reconciliation.

Where is the reconciliation?

Just below the cash flow statement, or in a note that starts from the balance-sheet cash line and adds restricted cash to reach the statement total.

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.

More in Learn and Tools · Methodology & Disclosures explains where every number comes from.