Boeing 2015 Annual Report Download - page 55

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39
BCC enters into certain transactions with Boeing, reflected in Unallocated items, eliminations and other,
in the form of intercompany guarantees and other subsidies that mitigate the effects of certain credit quality
or asset impairment issues on the BCC segment.
Liquidity and Capital Resources
Cash Flow Summary
(Dollars in millions)
Years ended December 31, 2015 2014 2013
Net earnings $5,176 $5,446 $4,585
Non-cash items 2,392 2,515 2,516
Changes in working capital 1,795 897 1,078
Net cash provided by operating activities 9,363 8,858 8,179
Net cash (used)/provided by investing activities (1,846) 2,467 (5,154)
Net cash used by financing activities (7,920) (8,593) (4,249)
Effect of exchange rate changes on cash and cash equivalents (28) (87) (29)
Net (decrease)/increase in cash and cash equivalents (431) 2,645 (1,253)
Cash and cash equivalents at beginning of year 11,733 9,088 10,341
Cash and cash equivalents at end of period $11,302 $11,733 $9,088
Operating Activities Net cash provided by operating activities was $9.4 billion during 2015, compared
with $8.9 billion during 2014 and $8.2 billion in 2013. The increase of $0.5 billion in 2015 was primarily
due to lower inventory growth, partially offset by lower receipts of advances and progress billings. The
increase of $0.7 billion in 2014 was primarily due to higher customer advances which more than offset
higher gross inventory. Our investment in gross inventories decreased by $0.3 billion in 2015 primarily in
our BDS business, largely driven by ending production of C-17 aircraft, which more than offset continued
investment in commercial airplane program inventory. Our investment in gross inventories increased $7.6
billion in 2014 and $5.7 billion in 2013, largely driven by continued investment in commercial airplane
program inventory, primarily 787 inventory. Advances and progress billings increased by $0.4 billion in
2015, $6.9 billion in 2014 and $3.9 billion in 2013, primarily due to payments from Commercial Airplane
customers. Discretionary contributions to our pension plans were insignificant in 2015 compared with $0.8
billion in 2014 and $1.5 billion in 2013.
Investing Activities Cash used by investing activities was $1.8 billion during 2015 compared with $2.5
billion provided during 2014 and $5.2 billion used during 2013, largely due to changes in investments in
time deposits. Net proceeds from investments were $0.6 billion in 2015 compared with $4.8 billion in 2014
and net contributions to investments of $2.9 billion in 2013. In 2015, capital expenditures totaled $2.5
billion, up from $2.2 billion in 2014 and $2.1 billion in 2013. We expect capital expenditures in 2016 to be
consistent with 2015 due to continued investment to support growth.
Financing Activities Cash used by financing activities was $7.9 billion during 2015, a decrease of $0.7
billion compared with 2014 primarily due to higher new borrowings of $0.8 billion and lower repayments
of debt and distribution rights of $0.9 billion in 2015, which more than offset higher share repurchases of
$0.8 billion and higher dividend payments of $0.4 billion in 2015. Cash used by financing activities was
$8.6 billion during 2014, an increase of $4.3 billion compared with 2013 primarily due to higher share
repurchases of $3.2 billion, higher dividends paid of $0.6 billion and a decrease in proceeds from stock
options exercised of $0.8 billion in 2014, partially offset by higher new borrowings of $0.4 billion in 2014.