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EXELIS INC.
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CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
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(preliminary and unaudited)
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(IN MILLIONS)
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Year Ended December 31,
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2013
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2012
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2011
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Operating activities
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Net income
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$
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281
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$
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330
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$
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326
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Adjustments to reconcile net income to net cash provided by
operating activities:
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Depreciation and amortization
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110
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130
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133
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Stock-based compensation
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32
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24
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18
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Restructuring and asset impairment charges
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83
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19
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23
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Payments for restructuring
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(58)
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(20)
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(19)
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Defined benefit plans expense
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87
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43
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46
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Defined benefit plans payments
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(206)
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(290)
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(87)
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Change in assets and liabilities
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Change in receivables
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52
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41
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(106)
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Change in inventories
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39
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56
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(99)
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Change in other assets
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(20)
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(11)
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(27)
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Change in accounts payable
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(77)
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(2)
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122
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Change in advance payments and billings in excess of costs
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(21)
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(58)
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(49)
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Change in deferred taxes
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130
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112
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64
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Change in other liabilities
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(123)
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9
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(13)
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Other, net
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1
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2
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2
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Net cash provided by operating activities
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310
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385
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334
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Investing activities
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Capital expenditures
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(78)
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(119)
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(95)
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Proceeds from the sale of assets
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9
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2
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14
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Acquisitions, net of cash acquired
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(16)
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(43)
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—
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Other, net
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2
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1
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(4)
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Net cash used in investing activities
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(83)
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(159)
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(85)
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Financing activities
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Short-term borrowing under credit facility
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—
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—
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240
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Repayments under credit facility
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—
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—
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(240)
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Proceeds from the issuance of debt, net
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—
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—
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649
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Payment of debt issuance costs
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—
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—
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(6)
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Dividend paid
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(58)
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(77)
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(19)
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Common stock repurchased
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(16)
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—
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—
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Proceeds from the exercise of stock options
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23
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19
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—
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Transfers to parent, net
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—
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—
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(775)
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Other, net
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—
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1
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4
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Net cash used in financing activities
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(51)
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(57)
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(147)
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Exchange rate effects on cash and cash equivalents
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1
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7
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(4)
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Net change in cash and cash equivalents
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177
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176
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98
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Cash and cash equivalents – beginning of year
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292
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116
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18
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Cash and cash equivalents – end of year
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$
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469
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$
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292
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$
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116
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Supplemental disclosures of cash flow information
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Cash paid during the year for
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Income taxes (net of refunds received)
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$
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97
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$
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28
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$
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86
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Interest
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$
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34
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$
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37
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$
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—
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