Northrop Grumman Corp. (NOC)

Cash Flow Statement

Difficulty: Beginner

The cash flow statement provides information about a company’s cash receipts and cash payments during an accounting period, showing how these cash flaws link the ending cash balance to the beginning balance shown on the company’s 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, 2018		Dec 31, 2017		Dec 31, 2016		Dec 31, 2015		Dec 31, 2014
	Net earnings
	Depreciation and amortization
	Mark-to-market pension and OPB expense
	Stock-based compensation
	Excess tax benefits from stock-based compensation
	Deferred income taxes
	Accounts receivable, net
	Unbilled receivables, net
	Inventoried costs, net
	Prepaid expenses and other assets
	Accounts payable and other liabilities
	Income taxes payable, net
	Retiree benefits
	Changes in assets and liabilities
	Other, net
	Adjustments to reconcile to net cash provided by operating activities
	Net cash provided by operating activities
	Acquisition of Orbital ATK, net of cash acquired
	Capital expenditures
	Other, net
	Net cash used in investing activities
	Payments of long-term debt
	Net proceeds from issuance of long-term debt
	Net proceeds from (payments to) credit facilities
	Net borrowings on commercial paper
	Common stock repurchases
	Cash dividends paid
	Payments of employee taxes withheld from share-based awards
	Other, net
	Net cash provided by (used in) financing activities
	Increase (decrease) in cash and cash equivalents
	Cash and cash equivalents, beginning of year
	Cash and cash equivalents, end of year

Based on: 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-30), 10-K (filing date: 2016-02-01), 10-K (filing date: 2015-02-02).

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.’s net cash provided by operating activities declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.
Net cash used in 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.’s net cash used in investing activities declined from 2016 to 2017 and from 2017 to 2018.
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.’s net cash provided by (used in) financing activities increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

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	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality