|
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) | |||||||
|
Three months ended
October 31, 2017 |
Twelve months ended
October 31, 2017 | ||||||
| Cash flows from operating activities: | |||||||
| Net earnings | $ | 524 | $ | 344 | |||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 682 | 3,051 | |||||
| Stock-based compensation expense | 79 | 428 | |||||
| Provision for doubtful accounts and inventory | 47 | 129 | |||||
| Restructuring charges(a) | 406 | 964 | |||||
| Deferred taxes on earnings | (1,267 | ) | (1,122 | ) | |||
| Excess tax benefit from stock-based compensation | (27 | ) | (143 | ) | |||
| (Earnings) loss from equity interests | (1 | ) | 23 | ||||
| Dividends received from equity investees(b) | 98 | 98 | |||||
| Other, net | 151 | 543 | |||||
| Changes in operating assets and liabilities, net of acquisitions: | |||||||
| Accounts receivable | 207 | 457 | |||||
| Financing receivables | (335 | ) | (462 | ) | |||
| Inventory | (201 | ) | (542 | ) | |||
| Accounts payable | 340 | 992 | |||||
| Taxes on earnings | 337 | (265 | ) | ||||
| Restructuring | (112 | ) | (800 | ) | |||
| Other assets and liabilities(c) | (102 | ) | (2,806 | ) | |||
| Net cash provided by operating activities | 826 | 889 | |||||
| Cash flows from investing activities: | |||||||
| Investment in property, plant and equipment | (732 | ) | (3,137 | ) | |||
| Proceeds from sale of property, plant and equipment | 276 | 679 | |||||
| Purchases of available-for-sale securities and other investments | (14 | ) | (45 | ) | |||
| Maturities and sales of available-for-sale securities and other investments | 24 | 38 | |||||
| Financial collateral posted | (302 | ) | (686 | ) | |||
| Financial collateral returned | 417 | 466 | |||||
| Payments made in connection with business acquisitions, net of cash acquired | (152 | ) | (2,202 | ) | |||
| Payments from business divestitures, net(d) | — | (20 | ) | ||||
| Net cash used in investing activities | (483 | ) | (4,907 | ) | |||
| Cash flows from financing activities: | |||||||
| Short-term borrowings with original maturities less than 90 days, net | (12 | ) | 18 | ||||
| Proceeds from debt, net of issuance costs | 1,510 | 2,259 | |||||
| Payment of debt | (1,487 | ) | (3,783 | ) | |||
| Settlement of cash flow hedge | — | 5 | |||||
| Issuance of common stock under employee stock plans | 45 | 411 | |||||
| Repurchase of common stock | (620 | ) | (2,556 | ) | |||
| Net transfer of cash and cash equivalents to Everett | (152 | ) | (711 | ) | |||
| Net transfer of cash and cash equivalents to Seattle | (227 | ) | (227 | ) | |||
| Cash dividend from Everett (e) | — | 3,008 | |||||
| Cash dividend from Seattle (f) | 2,500 | 2,500 | |||||
| Restricted cash transfer (g) | — | (29 | ) | ||||
| Excess tax benefit from stock-based compensation | 27 | 143 | |||||
| Cash dividends paid | (105 | ) | (428 | ) | |||
| Net cash provided by financing activities | 1,479 | 610 | |||||
| Increase (decrease) in cash and cash equivalents | 1,822 | (3,408 | ) | ||||
| Cash and cash equivalents at beginning of period | 7,757 | 12,987 | |||||
| Cash and cash equivalents at end of period | $ | 9,579 | $ | 9,579 | |||
- For the three and twelve months ended October 31, 2017, includes $296 million of restructuring charges related to the HPE Next initiative and reported within transformation costs in the Consolidated Statement of Earnings.
