FY2021 10-K Document - FINAL 11 15 21 - Flipbook - Page 34
Table of Contents
FINANCIAL CONDITION AND LIQUIDITY
(dollars in millions)
Net cash provided (used) by:
Operating activities
Investing activities
Financing activities
2021
$
293
(191)
(87)
2020
$
279
(146)
(143)
2019
$
181
(116)
(99)
2021 vs. 2020
$
%
Variance
Variance
2020 vs. 2019
$
%
Variance
Variance
$
$
14
(45)
56
5%
31%
(39%)
98
(30)
(44)
54%
26%
45%
Our available borrowing capacity and our cash flow from operations provide us with the financial resources needed to
run our operations, reinvest in our business and make strategic acquisitions.
At October 2, 2021, our cash balances were $101 million which was primarily held outside of the U.S. Cash flow from
our U.S. operations, together with borrowings on our credit facility, fund on-going activities, debt service requirements
and future growth investments.
Operating activities
Net cash provided by operating activities increased in 2021 compared to 2020, driven by working capital
improvements. In 2021, cash from inventories increased approximately $120 million when compared to 2020,
primarily in our Aircraft Controls and Space and Defense Controls segments. Also, accounts payable used $105
million less cash than a year ago, based on the timing of vendor payments. These working capital benefits were
partially offset by accounts receivable, which provided $185 million less cash than a year ago, as a result of strong
year end collections in 2020. In addition, 2021 pension contributions decreased $21 million from the prior year.
We expect cash from operations in 2022 to be approximately $340 million, driven primarily by cash from the amended
securitization facility, partially offset by less cash from new customer advances, as we work down existing project
milestones. See Note 24, Subsequent Events, of Item 8, Financial Statements and Supplementary Data of this report
for further discussion of our amended and restated receivables purchase agreement.
Investing activities
Net cash used by investing activities in 2021 included $78 million for our acquisition of Genesys and $129 million for
capital expenditures. We increased our investments in capital expenditures in 2021 once the level of uncertainty from
the pandemic subsided. Net cash used by investing activities in 2020 included $54 million for our acquisition of GAT
and $88 million for capital expenditures.
We expect capital expenditures in 2022 to be $160 million, as we invest in facilities and infrastructure to support future
growth and operational improvements.
Financing activities
Net cash used by financing activities in 2021 included $32 million of cash dividends, $30 million for our Board of
Directors authorized share repurchase programs and $28 million of net repayments on our credit facilities.
Net cash used by financing activities in 2020 included the net proceeds of issuing our $500 million aggregate principal
4.25% senior notes, which were used to repay a portion of our outstanding borrowings. Additionally, financing
activities in 2020 included $215 million related to repurchasing approximately 3 million shares, $95 million of net
payments on long-term debt and $25 million of cash dividends.
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