Net cash provided by operating activities was $1.6 billion in 2009, compared to $0.4 billion used in 2008, a year-to-year increase of cash provided by operations of $2.0 billion despite a drop in revenue of $6.8 billion. The 2009 net loss increased $1.0 billion over the prior year. The increased cash was driven mainly by the decrease of $4 billion in retiree health benefits expense and payment resulting from P.L.111-68 and a $2.1 billion increase in workers’ compensation liability ($1.1 billion of which is from deferring the cash payment from September to October).
Net cash used in operating activities was $0.4 billion in 2008 compared to $2.6 billion used by operating activities in 2007. The year-to-year change of $2.2 billion was driven mainly by the reduction in the net loss of $2.3 billion. This, in turn, was largely due to the absence in 2008 of the one-time transfer of $3.0 billion formerly held in escrow to the PSRHBF in 2007.
