Name: Raytheon Co. (NYSE:RTN) | Cash Flow Statement
Creator: Stock Analysis on Net

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.

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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).

Net cash provided by operating activities demonstrates a consistent growth trajectory over the five-year period, increasing from US$ 2,346 million in 2015 to US$ 4,482 million in 2019. This expansion is closely aligned with a steady rise in net income, which grew from US$ 2,067 million in 2015 to US$ 3,329 million in 2019, indicating a strong correlation between accounting profitability and cash generation.

Operating Cash Flow Dynamics: The growth in operating cash flow is supported by a gradual increase in depreciation and amortization, which rose from US$ 489 million in 2015 to US$ 605 million in 2019. Significant volatility is observed in the changes in assets and liabilities; while this figure was negative between 2015 and 2018, a substantial positive contribution of US$ 548 million occurred in 2019, significantly boosting the net cash provided by operating activities in the final year of the analysis.
Investment and Capital Expenditure Trends: A clear upward trend is observed in additions to property, plant, and equipment, which increased from US$ 406 million in 2015 to US$ 942 million in 2019, suggesting an intensifying focus on capacity expansion or modernization. Investing activities were characterized by high variability, notably featuring a significant outflow of US$ 1,954 million for the purchase of acquired companies in 2015, followed by more moderate investment levels in subsequent years.
Financing and Shareholder Returns: Cash outflows for financing activities increased steadily, moving from US$ 1,509 million in 2015 to US$ 2,803 million in 2019. This trend is driven by a consistent increase in dividend payments, which grew from US$ 797 million to US$ 1,036 million over the period. Additionally, share repurchases remained a primary use of cash, peaking at US$ 1,325 million in 2018 before settling at US$ 800 million in 2019.
Liquidity and Cash Position: The ending cash, cash equivalents, and restricted cash balance showed an overall increase, rising from US$ 2,328 million in 2015 to US$ 4,298 million in 2019. The data indicates that the growth in operating cash flow has been more than sufficient to fund rising capital expenditures and aggressive shareholder return programs while simultaneously strengthening the company's liquidity position.

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