Northrop Grumman 2010 Annual Report Download - page 74

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CONSOLIDATED STATEMENTS OF CASH FLOWS
$ in millions 2010 2009 2008
Year Ended December 31
Operating Activities
Sources of Cash—Continuing Operations
Cash received from customers
Progress payments $ 6,401 $ 8,561 $ 6,219
Collections on billings 28,079 25,099 26,938
Other cash receipts 61 62 88
Total sources of cash—continuing operations 34,541 33,722 33,245
Uses of Cash—Continuing Operations
Cash paid to suppliers and employees (29,775) (29,250) (28,817)
Pension contributions (894) (858) (320)
Interest paid, net of interest received (280) (269) (287)
Income taxes paid, net of refunds received (1,071) (774) (712)
Income taxes paid on sale of businesses (508) (7)
Excess tax benefits from stock-based compensation (22) (2) (48)
Other cash payments (46) (30) (16)
Total uses of cash—continuing operations (32,088) (31,691) (30,207)
Cash provided by continuing operations 2,453 2,031 3,038
Cash provided by discontinued operations 102 173
Net cash provided by operating activities 2,453 2,133 3,211
Investing Activities
Proceeds from sale of businesses, net of cash divested 14 1,650 175
Payments for businesses purchased (33) (92)
Additions to property, plant, and equipment (770) (654) (681)
Payments for outsourcing contract costs and related software costs (6) (68) (110)
Decrease (increase) in restricted cash 5(28) 61
Other investing activities, net (4) 21
Net cash (used in) provided by investing activities (761) 867 (626)
Financing Activities
Net borrowings under lines of credit (2) (12) (2)
Proceeds from issuance of long-term debt 1,484 843
Payments of long-term debt (1,190) (474) (113)
Proceeds from exercises of stock options and issuances of common stock 142 51 103
Dividends paid (545) (539) (525)
Excess tax benefits from stock-based compensation 22 248
Common stock repurchases (1,177) (1,100) (1,555)
Net cash used in financing activities (1,266) (1,229) (2,044)
Increase in cash and cash equivalents 426 1,771 541
Cash and cash equivalents, beginning of year 3,275 1,504 963
Cash and cash equivalents, end of year $ 3,701 $ 3,275 $ 1,504
The accompanying notes are an integral part of these consolidated financial statements.
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NORTHROP GRUMMAN CORPORATION