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.

Northrop Grumman Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net earnings	4,896)	7,005)	3,189)	2,248)	3,229)
Depreciation and amortization	1,342)	1,239)	1,267)	1,265)	800)
Mark-to-market pension and OPB (benefit) expense	(1,232)	(2,355)	1,034)	1,800)	655)
Stock-based compensation	99)	94)	90)	127)	86)
Deferred income taxes	(321)	603)	210)	(509)	234)
Gain on sale of business	—)	(1,980)	—)	—)	—)
Net periodic pension and OPB income	(1,193)	(1,091)	(802)	(432)	—)
Pension and OPB contributions	(136)	(141)	(887)	(263)	—)
Accounts receivable, net	(44)	(10)	(285)	122)	202)
Unbilled receivables, net	(646)	(414)	160)	(335)	(297)
Inventoried costs, net	(205)	(52)	18)	(135)	(37)
Prepaid expenses and other assets	2)	66)	(147)	(78)	(56)
Accounts payable and other liabilities	572)	376)	719)	617)	381)
Income taxes payable, net	(279)	215)	(238)	(63)	(258)
Retiree benefits	—)	—)	—)	—)	(1,083)
Changes in assets and liabilities	(600)	181)	227)	128)	(1,148)
Other, net	46)	12)	(23)	(67)	(29)
Adjustments to reconcile to net cash provided by operating activities	(1,995)	(3,438)	1,116)	2,049)	598)
Net cash provided by operating activities	2,901)	3,567)	4,305)	4,297)	3,827)
Divestiture of IT services business	—)	3,400)	—)	—)	—)
Acquisition of Orbital ATK, net of cash acquired	—)	—)	—)	—)	(7,657)
Capital expenditures	(1,435)	(1,415)	(1,420)	(1,264)	(1,249)
Proceeds from sale of equipment to a customer	155)	84)	205)	—)	—)
Other, net	39)	(11)	4)	57)	28)
Net cash (used in) provided by investing activities	(1,241)	2,058)	(1,211)	(1,207)	(8,878)
Net proceeds from issuance of long-term debt	—)	—)	2,239)	—)	—)
Payments of long-term debt	—)	(2,236)	(1,027)	(500)	(2,276)
Payments to credit facilities	—)	—)	(78)	(31)	(320)
Net borrowings on (repayments of) commercial paper	—)	—)	—)	(198)	198)
Common stock repurchases	(1,504)	(3,705)	(490)	(744)	(1,263)
Cash dividends paid	(1,052)	(983)	(953)	(880)	(821)
Payments of employee taxes withheld from share-based awards	(50)	(34)	(66)	(65)	(85)
Other, net	(7)	(44)	(57)	(6)	(28)
Net cash provided by (used in) financing activities	(2,613)	(7,002)	(432)	(2,424)	(4,595)
Increase (decrease) in cash and cash equivalents	(953)	(1,377)	2,662)	666)	(9,646)
Cash and cash equivalents, beginning of year	3,530)	4,907)	2,245)	1,579)	11,225)
Cash and cash equivalents, end of year	2,577)	3,530)	4,907)	2,245)	1,579)

Based on: 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), 10-K (reporting date: 2018-12-31).

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.	Northrop Grumman Corp. net cash provided by operating activities decreased from 2020 to 2021 and from 2021 to 2022.
Net cash (used in) provided by 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.	Northrop Grumman Corp. net cash (used in) provided by investing activities increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
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.	Northrop Grumman Corp. net cash provided by (used in) financing activities decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level.

Northrop Grumman Corp. (NYSE:NOC)

Cash Flow Statement