HEWLETT-PACKARD COMPANY AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Three months ended ------------------------------- January 31, January 31, 2012 2011 -------------- -------------- Cash flows from operating activities: Net earnings $ 1,468 $ 2,605 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 1,303 1,255 Stock-based compensation expense 175 180 Provision for bad debt and inventory 52 86 Restructuring charges 40 158 Deferred taxes on earnings (110) 632 Excess tax benefit from stock-based compensation (11) (64) Other, net 44 (104) Changes in assets and liabilities: Accounts and financing receivables 2,311 1,752 Inventory 180 (333) Accounts payable (2,376) (912) Taxes on earnings (12) (242) Restructuring (174) (272) Other assets and liabilities (1,697) (1,671) -------------- -------------- Net cash provided by operating activities 1,193 3,070 -------------- -------------- Cash flows from investing activities: Investment in property, plant and equipment (883) (926) Proceeds from sale of property, plant and equipment 96 543 Purchases of available-for-sale securities and other investments - (19) Maturities and sales of available-for- sale securities and other investments 96 53 Payments made in connection with business acquisitions, net of cash acquired (141) (14) Proceeds from business divestiture, net 81 - -------------- -------------- Net cash used in investing activities (751) (363) -------------- -------------- Cash flows from financing activities: Repayment of commercial paper and notes payable, net (2,607) (3,710) Issuance of debt 3,035 2,117 Payment of debt (100) (138) Issuance of common stock under employee stock plans 313 430 Repurchase of common stock (780) (2,290) Excess tax benefit from stock-based compensation 11 64 Cash dividends paid (244) (175) -------------- -------------- Net cash used in financing activities (372) (3,702) -------------- -------------- Increase (decrease) in cash and cash equivalents 70 (995) Cash and cash equivalents at beginning of period 8,043 10,929 -------------- -------------- Cash and cash equivalents at end of period $ 8,113 $ 9,934 ============== ==============