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Debt repayment is a financing activity because it involves changes to the company’s capital structure with creditors. The cash flow statement separates cash flows into operating activities (the day-to-day business), investing activities (purchases or sales of long-term assets), and financing activities (transactions with lenders and owners, such as issuing debt or repaying debt and paying dividends). Repaying principal on borrowed funds reduces both cash and debt, which is not part of normal operations or asset purchases, so it belongs in financing activities. (Interest payments, by contrast, are treated differently under some standards.) Supplemental information is for noncash financing activities, not for actual cash outflows.