Fundamentals - Annual Cash Flow

Year Ended December 312016 2015 2014
(In millions)   
    
Operating Activities:   
Net income$716 $287$962
Adjustments to reconcile net income to net cash provided (used) by
operating activities:
   
   Loss on sale of subsidiaries   451
   Investment (gains) losses(50) 71 (47)
   Equity method investees221 18264
   Amortization of investments(27) 173
   Depreciation841 955899
   Impairment of goodwill 20 
   Asset impairments697 865228
   Provision for deferred income taxes102 (225)11
   Other non-cash items73 105134
Changes in operating assets and liabilities, net:   
   Receivables24 120738
   Deferred acquisition costs(8) 31144
   Insurance reserves237 241 (363)
   Other assets(71) (43) (128)
   Other liabilities26 (33)123
   Trading securities(528) 674 (129)
Net cash flow operating activities2,253 3,5472,990
    
Investing Activities:   
Purchases of fixed maturities(9,827) (8,675) (9,381)
Proceeds from sales of fixed maturities5,332 4,3904,914
Proceeds from maturities of fixed maturities3,219 4,0953,983
Purchases of limited partnership investments(355) (188) (271)
Proceeds from sales of limited partnership investments327 174167
Purchases of property, plant and equipment(1,450) (1,555) (2,753)
Acquisitions (79) (157) (448)
Dispositions330 331,031
Change in short term investments158 1201,396
Other, net158 (172) (108)
Net cash flow investing activities(2,187) (1,935) (1,470)
    
Financing Activities:   
Dividends paid(84) (90) (95)
Dividends paid to noncontrolling interests(134) (165) (338)
Purchases of subsidiary stock from noncontrolling interests(8) (29) (149)
Purchases of Loews treasury stock(134) (1,265) (622)
Issuance of Loews common stock  76
Proceeds from sale of subsidiary stock  1145
Principal payments on debt(3,418) (1,929) (2,269)
Issuance of debt3,614 1,8282,004
Other, net(2) 416
Net cash flow financing activities(166) (1,525) (1,442)
Effect of foreign exchange rate on cash(13) (11) (8)
Net change in cash(113) 7670
Cash, beginning of year440 364294
Cash, end of year$327 $440$364
For complete copies of our financial results, please refer to our SEC Filings