The change in internal energy of the system is that there is an increase of 306kj in internal energy.
By using the first law and sign convention;
ΔE₍int₎ = Q - W
But Q₍int₎ greater than 0
W₍int₎ less than 0
in convention
So,
ΔE₍int₎ = Q - W
= 186 - (-120)
= 186 + 120
=306 kj