Raytheon 2013 Annual Report Download - page 88

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78
RAYTHEON COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions) Years Ended December 31: 2013 2012 2011
Cash flows from operating activities
Net income $ 2,013 $ 1,900 $ 1,896
(Income) loss from discontinued operations, net of tax (64) 1 (18)
Income from continuing operations 1,949 1,901 1,878
Adjustments to reconcile to net cash provided by (used in) operating activities
from continuing operations, net of the effect of acquisitions and divestitures
Depreciation and amortization 445 455 444
Stock-based compensation 129 122 102
Deferred income taxes 68 94 376
Tax benefit from stock-based awards (16) (13) (14)
Changes in assets and liabilities
Contracts in process, net and advance payments and billings in excess
of costs incurred (391)(145) 289
Inventories 18 (37) 29
Prepaid expenses and other current assets (27) 44 (81)
Accounts payable (171) (159) (41)
Income taxes receivable/payable 197 (219) (49)
Accrued employee compensation 53 75 18
Other accrued expenses 48 3 (150)
Other long-term liabilities (30) (74) (25)
Pension and other postretirement benefit plans 150 (131) (760)
Other, net (40) 35 86
Net cash provided by (used in) operating activities from continuing operations 2,382 1,951 2,102
Net cash provided by (used in) operating activities from discontinued operations (4) 6 5
Net cash provided by (used in) operating activities 2,378 1,957 2,107
Cash flows from investing activities
Additions to property, plant and equipment (280) (339) (340)
Proceeds from sales of property, plant and equipment 246 —
Additions to capitalized internal use software (49) (76) (97)
Purchases of short-term investments (1,241) (1,505) —
Sales of short-term investments 325 150 —
Maturities of short-term investments 779 505 —
Payments for purchases of acquired companies, net of cash received (9) (301) (645)
Other —(3) (1)
Net cash provided by (used in) investing activities from continuing operations (473) (1,523) (1,083)
Net cash provided by (used in) investing activities from discontinued operations —— 32
Net cash provided by (used in) investing activities (473) (1,523) (1,051)
Cash flows from financing activities
Dividends paid (694) (643) (588)
Issuance of long-term debt, net of offering costs —1,092 992
Repayments of long-term debt —(970) —
Repurchases of common stock (1,075) (825) (1,250)
Proceeds from warrants exercised —— 123
Activity under common stock plans (24) 94 22
Tax benefit from stock-based awards 16 13 14
Other (20) (7) (7)
Net cash provided by (used in) financing activities (1,797) (1,246) (694)
Net increase (decrease) in cash and cash equivalents 108 (812) 362
Cash and cash equivalents at beginning of year 3,188 4,000 3,638
Cash and cash equivalents at end of year $ 3,296 $ 3,188 $ 4,000
The accompanying notes are an integral part of the consolidated financial statements.