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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Operating activities:      
Net income (loss) $ 693 $ 724 $ (225)
Less: Loss (income) from discontinued operations, net of tax 76 (91) 732
Income from continuing operations 769 633 507
Depreciation of property, plant and equipment 172 156 161
Amortization of intangibles and other assets 53 42 42
Deferred income tax (benefit) provision (8) 27 18
Stock-based employee compensation expense 53 49 46
Contributions to employee savings plans in L3's common stock 106 102 98
Goodwill impairment charges [1] 0 0 46
Amortization of pension and postretirement benefit plans net loss and prior service cost 59 48 67
Amortization of bond discounts and deferred debt issue costs (included in interest expense) 6 8 8
Gain on sale of property, plant and equipment (31) (5) 0
Loss related to business divestitures [2] 0 0 31
Other non-cash items 9 17 (3)
Changes in operating assets and liabilities, excluding amounts from acquisitions, divestitures, and discontinued operations:      
Billed receivables (18) 1 61
Contracts in process (70) 26 6
Inventories (69) 22 (38)
Other assets (13) 29 (27)
Accounts payable, trade 99 (5) (27)
Accrued employment costs 28 10 35
Accrued expenses 32 (6) 23
Advance payments and billings in excess of costs incurred 13 (73) (7)
Income taxes (39) 33 (9)
Other current liabilities (42) (20) 3
Pension and postretirement benefits (48) (57) (8)
All other operating activities (76) (15) 2
Net cash from operating activities from continuing operations 985 1,022 1,035
Investing activities:      
Business acquisitions, net of cash acquired (316) (388) (320)
Proceeds from the sale of businesses, net of closing date cash balances 18 561 318
Capital expenditures (224) (210) (195)
Dispositions of property, plant and equipment 74 21 3
Other investing activities (5) 6 4
Net cash used in investing activities from continuing operations (453) (10) (190)
Financing activities:      
Proceeds from sale of senior notes 0 547 0
Repurchases, redemptions and maturities of senior notes 0 (856) (297)
Borrowings under revolving credit facility 1,328 819 1,194
Repayments of borrowings under revolving credit facility (1,328) (819) (1,194)
Common stock repurchased (180) (373) (740)
Dividends paid (236) (220) (214)
Proceeds from exercise of stock options 46 53 48
Proceeds from employee stock purchase plan 32 31 34
Debt issue costs 0 (10) 0
Repurchases of common stock to satisfy tax withholding obligations (18) (21) (33)
Other financing activities (10) (7) (3)
Net cash used in financing activities from continuing operations (366) (856) (1,205)
Effect of foreign currency exchange rate changes on cash and cash equivalents 20 (13) (19)
Net cash from (used in) discontinued operations:      
Operating activities 117 19 90
Investing activities (4) (6) (7)
Net cash from discontinued operations 113 13 83
Change in cash balance in assets held for sale 0 0 61
Net increase (decrease) in cash and cash equivalents 299 156 (235)
Cash and cash equivalents, beginning of the year 363 207 442
Cash and cash equivalents, end of the year $ 662 $ 363 $ 207
[1] Represents non-cash goodwill impairment charges recorded during 2015 of $46 million related to a business retained by L3 in connection with the sale of the NSS segment.
[2] See Note 3 for information regarding the Company's business divestitures.