|
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) | |||||||
|
Three months ended
July 31, 2018 |
Nine months ended
July 31, 2018 | ||||||
| Cash flows from operating activities: | |||||||
| Net earnings | $ | 451 | $ | 2,665 | |||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 641 | 1,931 | |||||
| Stock-based compensation expense | 56 | 242 | |||||
| Provision for doubtful accounts and inventory | 56 | 137 | |||||
| Restructuring charges | 131 | 399 | |||||
| Deferred taxes on earnings | (51 | ) | (1,215 | ) | |||
| Earnings from equity interests | (11 | ) | (23 | ) | |||
| Dividends received from equity investees | — | 47 | |||||
| Other, net | (42 | ) | 55 | ||||
| Changes in operating assets and liabilities, net of acquisitions: | |||||||
| Accounts receivable | 179 | 137 | |||||
| Financing receivables | 44 | (228 | ) | ||||
| Inventory | 42 | (545 | ) | ||||
| Accounts payable | (105 | ) | 72 | ||||
| Taxes on earnings | (54 | ) | (2,271 | ) | |||
| Restructuring | (126 | ) | (540 | ) | |||
| Other assets and liabilities | 38 | 775 | |||||
| Net cash provided by operating activities | 1,249 | 1,638 | |||||
| Cash flows from investing activities: | |||||||
| Investment in property, plant and equipment | (767 | ) | (2,129 | ) | |||
| Proceeds from sale of property, plant and equipment | 269 | 561 | |||||
| Purchases of available-for-sale securities and other investments | (24 | ) | (32 | ) | |||
| Maturities and sales of available-for-sale securities and other investments | 11 | 96 | |||||
| Financial collateral posted | (127 | ) | (1,318 | ) | |||
| Financial collateral returned | 402 | 1,333 | |||||
| Payments made in connection with business acquisitions, net of cash acquired | (178 | ) | (207 | ) | |||
| Proceeds from business divestitures, net | — | 13 | |||||
| Net cash used in investing activities | (414 | ) | (1,683 | ) | |||
| Cash flows from financing activities: | |||||||
| Short-term borrowings with original maturities less than 90 days, net | 109 | 84 | |||||
| Proceeds from debt, net of issuance costs | 283 | 894 | |||||
| Payment of debt | (1,928 | ) | (2,538 | ) | |||
| Net proceeds related to stock-based award activities(a) | 15 | 104 | |||||
| Repurchase of common stock | (936 | ) | (2,585 | ) | |||
| Net transfer of cash and cash equivalents to Everett | — | (41 | ) | ||||
| Net transfer of cash and cash equivalents from Seattle | — | 156 | |||||
| Cash dividends paid to non-controlling interests | (1 | ) | (9 | ) | |||
| Cash dividends paid | (170 | ) | (406 | ) | |||
| Net cash used in financing activities | (2,628 | ) | (4,341 | ) | |||
| Decrease in cash and cash equivalents | (1,793 | ) | (4,386 | ) | |||
| Cash and cash equivalents at beginning of period | 6,986 | 9,579 | |||||
| Cash and cash equivalents at end of period | $ | 5,193 | $ | 5,193 | |||
(a) During the first quarter of fiscal 2018, the Company adopted ASU 2016-09, as a result of which, excess tax benefits from stock-based compensation is presented as an operating activity, rather than as a financing activity, and the payment of withholding taxes is presented as a financing activity, rather than as an operating activity. The Company adopted the standard retrospectively for the prior comparative periods. As such, prior period amounts have been reclassified to conform to the current presentation.
