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.

Raytheon Co., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net income	3,329)	2,882)	2,001)	2,174)	2,067)
(Income) loss from discontinued operations, net of tax	(1)	1)	(2)	(1)	(13)
Income from continuing operations	3,328)	2,883)	1,999)	2,173)	2,054)
Depreciation and amortization	605)	568)	550)	515)	489)
Stock-based compensation	184)	165)	173)	151)	140)
Gain on sale of equity method investment	—)	—)	—)	(158)	—)
Loss on repayment of long-term debt	—)	—)	39)	—)	—)
Deferred income taxes	(28)	(24)	252)	109)	(56)
Tax benefit from stock-based awards	—)	—)	—)	—)	(47)
Receivables, net	296)	(327)	(157)	—)	—)
Contract assets and contract liabilities	(534)	28)	88)	(593)	(637)
Inventories	87)	(166)	14)	(23)	(223)
Prepaid expenses and other current assets	45)	73)	204)	181)	(28)
Income taxes receivable/payable	(275)	174)	(193)	(185)	(181)
Accounts payable	(168)	406)	(94)	152)	107)
Accrued employee compensation	295)	165)	111)	77)	72)
Other current liabilities	71)	(108)	106)	(6)	58)
Accrued retiree benefits	731)	(421)	(250)	419)	637)
Changes in assets and liabilities	548)	(176)	(171)	22)	(195)
Other, net	(155)	12)	(95)	40)	(39)
Adjustments to reconcile to net cash provided by operating activities, net of the effect of acquisitions and divestitures	1,154)	545)	748)	679)	292)
Net cash provided by operating activities	4,482)	3,428)	2,747)	2,852)	2,346)
Additions to property, plant and equipment	(942)	(763)	(543)	(561)	(406)
Proceeds from sales of property, plant and equipment	25)	2)	46)	34)	59)
Additions to capitalized internal-use software	(65)	(58)	(68)	(64)	(51)
Purchases of short-term investments	—)	—)	(696)	(472)	(1,392)
Sales of short-term investments	—)	—)	—)	—)	209)
Maturities of short-term investments	—)	309)	517)	1,184)	1,793)
Payments for purchases of acquired companies, net of cash received	(8)	—)	(93)	(57)	(1,954)
Proceeds from sale of business, net of transaction costs	—)	11)	—)	—)	—)
Payments for settlement of treasury rate lock	(17)	—)	—)	—)	—)
Other	1)	(22)	20)	(11)	(2)
Net cash (used in) provided by investing activities	(1,006)	(521)	(817)	53)	(1,744)
Dividends paid	(1,036)	(975)	(910)	(850)	(797)
Net borrowings (payments) on commercial paper	(300)	—)	300)	—)	—)
Repayments of long-term debt	—)	—)	(591)	—)	—)
Loss on repayment of long-term debt	—)	—)	(38)	—)	—)
Repurchases of common stock under share repurchase programs	(800)	(1,325)	(800)	(900)	(1,000)
Repurchases of common stock to satisfy tax withholding obligations	(69)	(93)	(85)	(96)	(99)
Acquisition of noncontrolling interest in Forcepoint	(588)	—)	—)	—)	—)
Contribution from noncontrolling interest in Forcepoint	—)	—)	8)	11)	—)
Acquisition of noncontrolling interest in RCCS LLC	—)	—)	—)	(90)	—)
Tax benefit from stock-based awards	—)	—)	—)	—)	47)
Sale of noncontrolling interest in Forcepoint	—)	—)	—)	—)	343)
Other	(10)	(5)	—)	(5)	(3)
Net cash used in financing activities	(2,803)	(2,398)	(2,116)	(1,930)	(1,509)
Net cash provided by (used in) operating activities from discontinued operations	(2)	—)	(2)	—)	13)
Net cash provided by investing activities from discontinued operations	3)	—)	—)	—)	—)
Net cash provided by (used in) discontinued operations	1)	—)	(2)	—)	13)
Net increase (decrease) in cash, cash equivalents and restricted cash	674)	509)	(188)	975)	(894)
Cash, cash equivalents and restricted cash at beginning of year	3,624)	3,115)	3,303)	2,328)	3,222)
Cash, cash equivalents and restricted cash at end of year	4,298)	3,624)	3,115)	3,303)	2,328)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

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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.	Raytheon Co. net cash provided by operating activities increased from 2017 to 2018 and from 2018 to 2019.
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.	Raytheon Co. net cash (used in) provided by investing activities increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.
Net cash 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.	Raytheon Co. net cash used in financing activities decreased from 2017 to 2018 and from 2018 to 2019.

Raytheon Co. (NYSE:RTN)

Cash Flow Statement