VISTEON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS ¹

 (Dollars in Millions)

(Unaudited)

Three Months Ended

March 31

2015

2014

OPERATING

Net income

$

70

$

48

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

Losses on Interiors divestiture

14

—

Depreciation and amortization

68

66

Equity in net income of affiliates, net of dividends remitted

(2)

(2)

Non-cash stock-based compensation

3

3

Changes in assets and liabilities:

Accounts receivable

(62)

(90)

Inventories

(29)

(18)

Accounts payable

110

131

Other assets and other liabilities

1

(42)

Net cash provided from operating activities

173

96

INVESTING

Capital expenditures

(55)

(52)

Loan to non-consolidated affiliate

(10)

—

Proceeds from asset sales and business divestitures

3

35

Other

(8)

(3)

Net cash used by investing activities

(70)

(20)

FINANCING

Short-term debt, net

(10)

(4)

Principal payments on debt

(3)

(1)

Dividends paid to non-controlling interests

(3)

(16)

Stock warrant and option exercises

10

1

Net cash used by financing activities

(6)

(20)

Effect of exchange rate changes on cash and equivalents

(17)

(5)

Net increase in cash and equivalents

80

51

Cash and equivalents at beginning of period

827

1,677

Cash and equivalents at end of period

$

907

$

1,728

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 $5 million of assets held reflected in Other current assets on the Consolidated Balance Sheet as of December 31, 2014.