Raytheon 2009 Annual Report Download - page 86

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RAYTHEON COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions) Years Ended December 31: 2009 2008 2007
Cash flows from operating activities
Net income $ 1,976 $ 1,696 $ 2,604
Loss (income) from discontinued operations, net of tax 12 (885)
Income from continuing operations 1,977 1,698 1,719
Adjustments to reconcile to net cash provided by operating activities from continuing
operations, net of the effect of acquisitions and divestitures
Depreciation and amortization 402 390 372
Stock-based compensation 127 122 109
Deferred income taxes 269 574 182
Collection of financing receivables 46 68 88
Tax benefit from stock-based awards (13) (53) (55)
Changes in assets and liabilities
Accounts receivable, net (14) 11 28
Contracts in process and advance payments and billings in excess of costs
incurred (211) 144 (197)
Inventories (6) 62 (12)
Prepaid expenses and other current assets (36) 60 8
Accounts payable 198 (24) 232
Income taxes receivable/payable 494 (351) (638)
Accrued employee compensation (56) (9) (34)
Other accrued expenses 78 3 (110)
Pension and other, net (510) (659) (443)
Net cash provided by operating activities from continuing operations 2,745 2,036 1,249
Net cash used in operating activities from discontinued operations (20) (21) (51)
Net cash provided by operating activities 2,725 2,015 1,198
Cash flows from investing activities
Additions to property, plant and equipment (280) (304) (313)
Proceeds from sales of property, plant and equipment 114 8
Additions to capitalized internal use software (67) (74) (85)
Change in other assets, net (12) (8) (6)
Proceeds from sales of discontinued operations, net —9 3,143
Payments for purchases of acquired companies, net of cash acquired (334) (54) (211)
Net cash (used in) provided by investing activities from continuing operations (692) (417) 2,536
Net cash used in investing activities from discontinued operations —— (29)
Net cash (used in) provided by investing activities (692) (417) 2,507
Cash flows from financing activities
Dividends paid (473) (460) (440)
Issuance of long-term debt, net of offering costs 496 ——
Repayments of long-term debt (474) — (1,724)
Repurchases of common stock (1,200) (1,700) (1,642)
Activity under common stock plans 1113 241
Tax benefit from stock-based awards 13 53 55
Other (13) ——
Net cash used in financing activities (1,650) (1,994) (3,510)
Net increase (decrease) in cash and cash equivalents 383 (396) 195
Cash and cash equivalents at beginning of year 2,259 2,655 2,460
Cash and cash equivalents at end of year $ 2,642 $ 2,259 $ 2,655
The accompanying notes are an integral part of the consolidated financial statements.
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