Goodwill impairment

  
HUNTINGTON INGALLS INDUSTRIES, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |  | Year Ended December 31 |
| ($ in millions) |  | 2021 |  | 2020 |  | 2019 |
| Operating Activities |  |  |  |  |  |  |
| Net earnings |  | $ | 544  |  |  | $ | 696  |  |  | $ | 549  |  |
| Adjustments to reconcile to net cash provided by (used in) operating activities |  |  |  |  |  |  |
| Depreciation |  | 207  |  |  | 191  |  |  | 180  |  |
| Amortization of purchased intangibles |  | 86  |  |  | 56  |  |  | 47  |  |
| Amortization of debt issuance costs |  | 8  |  |  | 7  |  |  | 3  |  |
| Provision for doubtful accounts |  | 7  |  |  | (1) |  |  | (6) |  |
| Stock-based compensation |  | 33  |  |  | 23  |  |  | 30  |  |
| Deferred income taxes |  | 98  |  |  | 23  |  |  | 97  |  |
|  |  |  |  |  |  |  |
| Goodwill impairment |  | —  |  |  | —  |  |  | 29  |  |
| Loss on early extinguishment of debt |  | —  |  |  | 21  |  |  | —  |  |
| Loss (gain) on investments in marketable securities |  | (19) |  |  | (17) |  |  | (11) |  |
| Asset impairments |  | —  |  |  | 13  |  |  | 6  |  |
| Change in |  |  |  |  |  |  |
| Accounts receivable |  | 58  |  |  | (70) |  |  | (51) |  |
| Contract assets |  | (126) |  |  | 22  |  |  | 32  |  |
| Inventoried costs |  | (25) |  |  | 11  |  |  | (11) |  |
| Prepaid expenses and other assets |  | (88) |  |  | (62) |  |  | (93) |  |
| Accounts payable and accruals |  | 45  |  |  | 344  |  |  | 4  |  |
| Retiree benefits |  | (78) |  |  | (176) |  |  | 80  |  |
| Other non-cash transactions, net |  | 10  |  |  | 12  |  |  | 11  |  |
| Net cash provided by operating activities |  | 760  |  |  | 1,093  |  |  | 896  |  |
| Investing Activities |  |  |  |  |  |  |
| Capital expenditures |  |  |  |  |  |  |
| Capital expenditure additions |  | (331) |  |  | (353) |  |  | (530) |  |
| Grant proceeds for capital expenditures |  | 20  |  |  | 17  |  |  | 94  |  |
| Acquisitions of businesses, net of cash received |  | (1,643) |  |  | (417) |  |  | (195) |  |
| Investment in affiliates |  | (22) |  |  | —  |  |  | —  |  |
| Proceeds from disposition of business |  | 20  |  |  | —  |  |  | —  |  |
|  |  |  |  |  |  |  |
| Other investing activities, net |  | 2  |  |  | (6) |  |  | 4  |  |
| Net cash used in investing activities |  | (1,954) |  |  | (759) |  |  | (627) |  |
| Financing Activities |  |  |  |  |  |  |
| Proceeds from issuance of long-term debt |  | 1,650  |  |  | 1,000  |  |  | —  |  |
| Repayment of long-term debt |  | (25) |  |  | (600) |  |  | —  |  |
| Proceeds from line of credit borrowings |  | —  |  |  | 385  |  |  | 5,119  |  |
| Repayment of line of credit borrowings |  | —  |  |  | (385) |  |  | (5,119) |  |
| Debt issuance costs |  | (22) |  |  | (13) |  |  | —  |  |
| Premiums and fees related to early extinguishment of debt |  | —  |  |  | (15) |  |  | —  |  |
| Dividends paid |  | (186) |  |  | (172) |  |  | (149) |  |
| Repurchases of common stock |  | (101) |  |  | (84) |  |  | (262) |  |
| Employee taxes on certain share-based payment arrangements |  | (7) |  |  | (13) |  |  | (23) |  |
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|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
| Net cash provided by (used in) financing activities |  | 1,309  |  |  | 103  |  |  | (434) |  |
| Change in cash and cash equivalents |  | 115  |  |  | 437  |  |  | (165) |  |
| Cash and cash equivalents, beginning of period |  | 512  |  |  | 75  |  |  | 240  |  |
| Cash and cash equivalents, end of period |  | $ | 627  |  |  | $ | 512  |  |  | $ | 75  |  |
| Supplemental Cash Flow Disclosure |  |  |  |  |  |  |
| Cash paid for income taxes (net of refunds) |  | $ | 33  |  |  | $ | 155  |  |  | $ | 137  |  |
| Cash paid for interest |  | $ | 76  |  |  | $ | 89  |  |  | $ | 75  |  |
| Non-Cash Investing and Financing Activities |  |  |  |  |  |  |
| Capital expenditures accrued in accounts payable |  | $ | 6  |  |  | $ | 7  |  |  | $ | 22  |  |
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The accompanying notes are an integral part of these consolidated financial statements.63
