VISTEON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS ¹

 (Unaudited, Dollars in Millions)

Three Months Ended

Twelve Months Ended

December 31

December 31

2016

2015

2016

2015

OPERATING

Net income (loss)

$

6

$

24

$

91

$

2,328

Adjustments to reconcile net income to net cash provided from operating activities:

Loss (gain) on Climate Transaction

—

8

2

(2,324)

Gain on non-consolidated affiliate transactions

1

—

—

(62)

Depreciation and amortization

22

22

84

169

Losses on divestitures and impairments

18

104

22

121

Equity in net income of non-consolidated affiliates, net of dividends remitted

1

1

(1)

1

Non-cash stock-based compensation

2

1

8

8

Loss on debt extinguishment

—

—

—

5

Other non-cash items

9

2

24

6

Changes in assets and liabilities:

Accounts receivable

(34)

8

(19)

1

Inventories

15

9

30

(20)

Accounts payable

35

(15)

(10)

33

Accrued income taxes

(24)

(129)

(63)

6

Other assets and other liabilities

31

29

(48)

66

Net cash provided from operating activities

82

64

120

338

INVESTING

Capital expenditures

(19)

(36)

(75)

(187)

Short-term investments, net

—

5

47

(47)

Loans to non-consolidated affiliate, net of repayments

—

—

(8)

(9)

Net proceeds from Climate transaction

—

—

356

2,664

Proceeds from asset sales and business divestitures

2

—

17

92

Acquisition of business, net of cash acquired

—

(4)

(15)

(4)

Payments on divestiture of businesses

(10)

(138)

(10)

(157)

Other

(10)

—

(10)

6

Net cash (used by) provided from investing activities

(37)

(173)

302

2,358

FINANCING

Short-term debt, net

11

3

—

2

Principal payments on debt

—

—

(2)

(250)

Distribution payments

—

—

(1,736)

—

Repurchase of common stock

—

—

(500)

(500)

Dividends paid to non-controlling interests

(13)

(24)

(13)

(55)

Exercised warrants and stock options

—

16

—

40

Stock based compensation tax withholding payments

—

(10)

(11)

(10)

Other

—

—

—

(1)

Net cash used by financing activities

(2)

(15)

(2,262)

(774)

Effect of exchange rate changes on cash and equivalents

(17)

(7)

(11)

(20)

Net (decrease) increase in cash and equivalents

26

(131)

(1,851)

1,902

Cash and equivalents at beginning of period

852

2,860

2,729

827

Cash and equivalents at end of period

$

878

$

2,729

$

878

$

2,729

¹

The Company has combined cash flows from discontinued operations with cash flows from continuing operations within the operating, investing and financing categories.  As such, cash and equivalents above include amounts reflected in current assets held for sale on the Consolidated Balance Sheets.