Boeing 2009 Annual Report Download - page 51

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Liquidity and Capital Resources
Cash Flow Summary
(Dollars in millions)
Years ended December 31, 2009 2008 2007
Net earnings $ 1,312 $ 2,672 $ 4,074
Non-cash items 2,381 1,829 1,753
Changes in working capital 1,910 (4,902) 3,757
Net cash provided/(used) by operating activities 5,603 (401) 9,584
Net cash (used)/provided by investing activities (3,794) 1,888 (3,822)
Net cash provided/(used) by financing activities 4,094 (5,202) (4,884)
Effect of exchange rate changes on cash and cash equivalents 44 (59) 46
Net increase/(decrease) in cash and cash equivalents 5,947 (3,774) 924
Cash and cash equivalents at beginning of year 3,268 7,042 6,118
Cash and cash equivalents at end of year $ 9,215 $ 3,268 $ 7,042
Operating Activities Net cash provided by operating activities increased by $6,004 million to $5,603
million during 2009 compared with 2008. The improvement reflects a reduction in working capital due
to the inventory that was built up during the 2008 IAM strike which was delivered in 2009, offset by the
continued ramp up of the 787 program during 2009. We expect operating cash flows to be lower in
2010 as we continue to build inventories prior to deliveries of the 787 and 747-8 airplanes. We
contributed 29,211,295 shares of our common stock with an aggregate value of $1.5 billion to our
pension plans in November 2009. Cash contributions to our pension plans totaled $82 million and $531
million in 2009 and 2008.
Investing Activities Cash used by investing activities totaled $3,794 million during 2009 compared
with $1,888 million provided during 2008. The $5,682 million year-over-year change is primarily due to
changes in investments in time deposits and debt securities. In 2008 we received net proceeds of
$4,670 million from liquidating investments. In 2009, we made net contributions of $1,588 million to
investments. In 2009, other investing outlays included $639 million for acquisitions and $448 million to
satisfy guarantees of Sea Launch indebtedness, which was partially offset by a $40 million
reimbursement. These cash outlays were partly offset by $488 million of lower capital spending on
property, plant and equipment additions in 2009 compared with 2008. We expect capital spending in
2010 to be higher than 2009 due to the construction of a second 787 final assembly line in North
Charleston, South Carolina.
Financing Activities Cash provided by financing activities totaled $4,094 million during 2009
compared with $5,202 million used during 2008, primarily due to proceeds from borrowings of $5,961
million in 2009 and reductions in share repurchases in 2009.
On March 13, 2009, we issued notes totaling $1,850 million, on July 28, 2009, we issued notes totaling
$1,950 million, and on November 20, 2009, we issued notes totaling $1,200 million. On October 27,
2009, BCC issued notes totaling $1,000 million.
In 2009, we repaid $551 million of debt, including $528 million of debt held at BCC. In 2008, we repaid
$738 million of debt, including $709 million of debt held at BCC. In 2007, we repaid $1,406 million of
debt, including $1,309 million of debt held at BCC. There were no material debt issuances during 2008
or 2007. At December 31, 2009 and 2008, the recorded balance of debt was $12,924 million and
$7,512 million, of which $707 million and $560 million were classified as short-term. This includes
$4,075 million and $3,652 million of debt recorded at BCC, of which $659 million and $528 million was
classified as short-term.
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