Net cash used by operating activities was $3.3 billion in 2010, compared to $1.6 billion provided by operations in 2009, a year-to-year increase of cash used by operations of $4.9 billion, primarily due to a $4.1 billion increase in the PSRHBF contribution and a $1.0 billion decrease in revenue. Cash and cash equivalents at September 30, 2010 were $1.2 billion compared to $4.1 billion at the end of 2009, due primarily to the $5.5 billion payment to the PSRHBF made in 2010 compared to the $1.4 billion payment in 2009. Without the enactment of P.L. 111-68, cash and cash equivalents at the end of 2009 would have been $89 million, rather than the reported amount of $4.1 billion, and without this added liquidity entering the fiscal year we would not have been able to make the full payment to the PSRHBF in 2010.
Net cash provided by operating activities was $1.6 billion in 2009, compared to $0.4 billion used in 2008. Net cash provided by operating activities was $2 billion higher in 2009 versus 2008 primarily due to a non-cash increase in our workers’ compensation liability of $2.1 billion, $1.1 billion of which occurred as a result of changing the cash payment date from September 2009 to October 2009. The net loss in 2009 was $1 billion higher in 2009 compared to 2008 but would have been $5 billion higher were it not for P.L. 111-68 which reduced the PSRHBF expense and payment in 2009 from $5.4 billion to $1.4 billion.
Net cash used by investing activities in 2010 was $1.3 billion, compared to $1.8 billion in 2009. Purchases of property and equipment in 2010 of $1.4 billion decreased by $446 million from the prior year and proceeds from building sales and the sale of property and equipment totaled $70 million in 2010, compared to $33 million in 2009.
Net cash used by investing activities was $1.8 billion in 2009, compared to $1.9 billion used in 2008. Purchases of property and equipment of $1.8 billion decreased by $156 million in 2009 from the $2.0 billion purchased in 2008. Proceeds from building sales and the sale of property and equipment totaled $33 million in 2009, compared to $57 million in 2008.
Net cash provided by financing activities was $1.7 billion in 2010 and $2.9 billion in 2009 and 2008. Debt with the FFB increased by $1.8 billion in 2010, and by the maximum allowable $3 billion in both 2009 and 2008.
