Cash Flow Statement
Quarterly Data

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 (quarterly data)

US$ in millions

3 months ended:	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018
Net earnings	842)	2,080)	915)	946)	955)	2,710)	1,063)	1,037)	2,195)	330)	986)	1,005)	868)	(409)	933)	861)	863)	356)	1,244)	789)	840)
Depreciation and amortization	298)	382)	327)	330)	303)	331)	314)	300)	294)	345)	317)	308)	297)	341)	318)	304)	302)	266)	253)	159)	122)
Mark-to-market pension and OPB (benefit) expense	—)	(1,232)	—)	—)	—)	(2,355)	—)	—)	—)	1,034)	—)	—)	—)	1,800)	—)	—)	—)	655)	—)	—)	—)
Stock-based compensation	19)	27)	30)	24)	18)	23)	31)	22)	18)	29)	25)	18)	18)	34)	38)	29)	26)	4)	29)	34)	19)
Deferred income taxes	(205)	117)	(39)	(198)	(201)	708)	16)	(122)	1)	(159)	200)	13)	156)	(533)	(24)	15)	33)	(41)	226)	71)	(22)
Gain on sale of business	—)	—)	—)	—)	—)	—)	—)	—)	(1,980)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Net periodic pension and OPB income	(76)	(298)	(298)	(299)	(298)	(273)	(272)	(274)	(272)	(190)	(204)	(171)	(237)	—)	—)	—)	—)	—)	—)	—)	—)
Pension and OPB contributions	(40)	(30)	(35)	(35)	(36)	(33)	(34)	(36)	(38)	(787)	(31)	(69)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Accounts receivable, net	(550)	425)	451)	(674)	(246)	123)	320)	(200)	(253)	347)	31)	147)	(810)	785)	(279)	334)	(718)	254)	93)	42)	(187)
Unbilled receivables, net	(232)	392)	(319)	(93)	(626)	182)	(284)	45)	(357)	546)	(260)	458)	(584)	443)	(120)	101)	(759)	601)	(328)	(166)	(404)
Inventoried costs, net	(137)	(34)	(73)	(71)	(27)	61)	(9)	(3)	(101)	88)	(21)	(47)	(2)	21)	—)	(32)	(124)	65)	(29)	(36)	(37)
Prepaid expenses and other assets	(54)	66)	(178)	98)	16)	60)	(20)	64)	(38)	(25)	(106)	(72)	56)	3)	(33)	(25)	(23)	53)	(166)	44)	13)
Accounts payable and other liabilities	(1,128)	629)	667)	8)	(732)	327)	251)	387)	(589)	436)	657)	459)	(833)	297)	687)	113)	(480)	506)	297)	168)	(590)
Income taxes payable, net	576)	(223)	(142)	(275)	361)	(448)	(218)	(147)	1,028)	(349)	(219)	320)	10)	(29)	(228)	54)	140)	(144)	(300)	(11)	197)
Retiree benefits	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(281)	(137)	(143)	(142)	(236)	(453)	(204)	(190)
Changes in assets and liabilities	(1,525)	1,255)	406)	(1,007)	(1,254)	305)	40)	146)	(310)	1,043)	82)	1,265)	(2,163)	1,239)	(110)	402)	(2,106)	1,099)	(886)	(163)	(1,198)
Other, net	(15)	(50)	29)	42)	25)	26)	5)	(45)	26)	(43)	(16)	(32)	68)	(8)	(16)	(4)	(31)	38)	(54)	(15)	2)
Adjustments to reconcile to net cash provided by (used in) operating activities	(1,544)	171)	420)	(1,143)	(1,443)	(1,268)	100)	(9)	(2,261)	1,272)	373)	1,332)	(1,861)	2,873)	206)	746)	(1,776)	2,021)	(432)	86)	(1,077)
Net cash provided by (used in) operating activities	(702)	2,251)	1,335)	(197)	(488)	1,442)	1,163)	1,028)	(66)	1,602)	1,359)	2,337)	(993)	2,464)	1,139)	1,607)	(913)	2,377)	812)	875)	(237)
Divestiture of IT services business	—)	—)	—)	—)	—)	—)	—)	—)	3,400)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Acquisition of Orbital ATK, net of cash acquired	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(7,657)	—)
Capital expenditures	(309)	(632)	(296)	(263)	(244)	(733)	(247)	(230)	(205)	(592)	(287)	(269)	(272)	(471)	(257)	(252)	(284)	(463)	(282)	(199)	(305)
Proceeds from sale of equipment to a customer	—)	55)	100)	—)	—)	—)	28)	56)	—)	205)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Other, net	—)	(1)	1)	44)	(5)	(8)	(4)	—)	1)	4)	(2)	—)	2)	49)	7)	(3)	4)	5)	21)	4)	(2)
Net cash (used in) provided by investing activities	(309)	(578)	(195)	(219)	(249)	(741)	(223)	(174)	3,196)	(383)	(289)	(269)	(270)	(422)	(250)	(255)	(280)	(458)	(261)	(7,852)	(307)
Net proceeds from issuance of long-term debt	1,995)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	2,239)	—)	—)	—)	—)	—)	—)	—)	—)
Payments of long-term debt	—)	—)	—)	—)	—)	—)	—)	(36)	(2,200)	(1,000)	(27)	—)	—)	—)	(500)	—)	—)	—)	(726)	(1,550)	—)
Payments to credit facilities	—)	—)	—)	—)	—)	—)	—)	—)	—)	(65)	—)	(6)	(7)	—)	(11)	—)	(20)	(6)	—)	(300)	(14)
Net borrowings on (repayments of) commercial paper	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(744)	744)	(399)	100)	(713)	814)	(301)	250)	249)	—)
Common stock repurchases	(723)	(493)	(371)	(322)	(318)	(981)	(581)	(143)	(2,000)	—)	—)	(146)	(344)	(300)	(213)	(171)	(60)	(1,054)	(168)	(41)	—)
Cash dividends paid	(270)	(266)	(267)	(268)	(251)	(246)	(251)	(248)	(238)	(242)	(242)	(242)	(227)	(222)	(223)	(224)	(211)	(205)	(209)	(209)	(198)
Payments of employee taxes withheld from share-based awards	(47)	—)	(2)	—)	(48)	(1)	(2)	(1)	(30)	—)	(2)	(1)	(63)	(2)	—)	(2)	(61)	(1)	(4)	(1)	(79)
Other, net	(26)	(3)	(3)	1)	(2)	2)	8)	(2)	(52)	—)	18)	(29)	(46)	(1)	(3)	(2)	—)	(1)	(5)	(1)	(21)
Net cash provided by (used in) financing activities	929)	(762)	(643)	(589)	(619)	(1,226)	(826)	(430)	(4,520)	(1,307)	(253)	(1,168)	2,296)	(924)	(850)	(1,112)	462)	(1,568)	(862)	(1,853)	(312)
Increase (decrease) in cash and cash equivalents	(82)	911)	497)	(1,005)	(1,356)	(525)	114)	424)	(1,390)	(88)	817)	900)	1,033)	1,118)	39)	240)	(731)	351)	(311)	(8,830)	(856)

The financial data reveals several notable trends and fluctuations across multiple quarters.

Net earnings: Net earnings exhibited volatility over the periods, with notable peaks at Dec 31, 2021 (2710 million USD) and Dec 31, 2018 (356 million USD was a low point though adjacent quarters showed higher values). There was a significant dip into negative territory at Dec 31, 2019 (-409 million USD) followed by recovery and strong earnings in 2021 and 2022. The most recent quarter, Mar 31, 2023, showed a moderate earnings figure of 842 million USD.
Depreciation and amortization: This expense rose steadily from 122 million USD in Mar 31, 2018 to a peak in Dec 31, 2022 at 382 million USD, indicating increasing non-cash charges possibly due to asset base growth or acquired intangible amortization. The latest quarter shows a slight reduction to 298 million USD.
Stock-based compensation: Stock-based compensation remained relatively stable, usually fluctuating between 18 million USD and 38 million USD, without any significant trend in either direction. This indicates consistent use of stock incentives in compensation.
Deferred income taxes: Deferred income taxes showed irregular fluctuations with occasional large negative swings (e.g., -533 million USD in Dec 31, 2018) and positive spikes (e.g., 1028 million USD in Mar 31, 2021). The variability suggests changes in tax positions, timing differences, or valuation allowances.
Net periodic pension and OPB income: This item consistently recorded negative values throughout reported periods, indicating pension and other post-retirement benefit expenses. The values ranged narrowly from about -171 million to -298 million USD, reflecting stable ongoing benefit costs.
Accounts receivable and unbilled receivables: Both accounts receivable and unbilled receivables showed significant volatility, alternating between large positive and negative changes. This irregular pattern may reflect timing differences in billing and collections, or shifts in contract progress billing.
Inventoried costs and prepaid expenses: Inventoried costs fluctuated but generally stayed within a modest range without a clear trend. Prepaid expenses also showed variability but no sustained directional movement.
Accounts payable and other liabilities: The changes in accounts payable and other liabilities experienced significant swings, from large negative values (e.g., -590 million USD in Mar 31, 2018 and -1128 million USD in Mar 31, 2023) to strong positive increases (e.g., 687 million USD in Sep 30, 2018). This variability reflects fluctuating payment timings and liability management.
Net cash provided by (used in) operating activities: This cash flow category generally tracked net earnings but with larger variability. Strong positive cash flows occurred in quarters such as Dec 31, 2018 (2377 million USD) and Dec 31, 2022 (2251 million USD), while negative cash flows related to operational challenges appeared at Mar 31, 2020 (-993 million USD) and Mar 31, 2019 (-913 million USD).
Net cash (used in) provided by investing activities: Investing cash flows included highly negative spikes coinciding with acquisitions and divestitures. For example, Jun 30, 2018 showed a large cash outflow (-7852 million USD), likely reflecting the acquisition of Orbital ATK. The notable positive cash flow of 3196 million USD in Mar 31, 2021 corresponded with proceeds from the divestiture of an IT services business.
Capital expenditures: Capital expenditures showed an increasing trend over time, with a major rise at Dec 31, 2021 (-733 million USD) and Dec 31, 2022 (-632 million USD), compared to earlier periods generally ranging between -200 million and -400 million USD. This suggests an expansion or reinvestment phase in fixed assets.
Common stock repurchases and dividends: Stock repurchases displayed escalation particularly from Dec 31, 2019 onward, with redemptions reaching -2000 million USD at Dec 31, 2020. Cash dividends paid remained stable, steadily increasing in small increments from -198 million USD in Mar 31, 2018 to -270 million USD in Mar 31, 2023, indicating a consistent return of earnings to shareholders.
Net cash provided by (used in) financing activities: Financing activities produced a mixed pattern. There were significant cash outflows in periods such as Jun 30, 2018 (-1853 million USD) and Dec 31, 2020 (-4520 million USD), often linked to debt repayments and share repurchases. Conversely, positive inflows appeared in Mar 31, 2020 (2296 million USD) and Mar 31, 2023 (929 million USD), reflecting issuance of debt or borrowings.
Overall cash position changes: The increase or decrease in cash and equivalents featured large negative adjustments early in the timeline (-8830 million USD in Jun 30, 2018) associated with major investing outflows, followed by periods of cash accumulation such as Dec 31, 2019 (1118 million USD) and Sep 30, 2022 (497 million USD). The latest reported quarter showed a slight decline (-82 million USD), indicative of relative cash stability following prior fluctuations.

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Northrop Grumman Corp. (NYSE:NOC)

Cash Flow Statement Quarterly Data

Cash Flow Statement
Quarterly Data