LEIDOS HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)

Three Months Ended

March 30,
 2018

March 31,
 2017

Cash flows from operations:

Net income

$

102

$

74

Adjustments to reconcile net income to net cash provided by (used in) operations:

Depreciation and amortization

63

82

Stock-based compensation

11

10

Asset impairment charges

7

—

Other

7

3

Change in assets and liabilities, net of effects of acquisitions and dispositions:

Receivables

(84)

(190)

Inventory, prepaid expenses and other current assets

(63)

22

Accounts payable and accrued liabilities

60

(37)

Accrued payroll and employee benefits

(107)

(86)

Deferred income taxes and income taxes receivable/payable

28

31

Other long-term assets/liabilities

(2)

20

Net cash provided by (used in) operating activities

22

Cash flows from investing activities:

Payments for property, plant and equipment

(15)

(7)

Acquisitions of businesses

(81)

—

Other

—

2

Net cash used in investing activities

(96)

(5)

Cash flows from financing activities:

Payments of long-term debt

(17)

(22)

Proceeds from issuances of stock

4

1

Repurchases of stock and other

(22)

(6)

Dividend payments

(52)

(50)

Other

(4)

(1)

Net cash used in financing activities

(91)

(78)

Net decrease in cash, cash equivalents and restricted cash

(165)

(154)

Cash, cash equivalents and restricted cash at beginning of period

422

396

Cash, cash equivalents and restricted cash at end of period

$

257

$

242