HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) | |||||||
Three Months Ended January 31, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 1,436 | $ | 267 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | 635 | 840 | |||||
Stock-based compensation expense | 103 | 145 | |||||
Provision for doubtful accounts and inventory | 41 | 7 | |||||
Restructuring charges | 174 | 177 | |||||
Deferred taxes on earnings | (1,335 | ) | (125 | ) | |||
(Earnings) loss from equity interests | (22 | ) | 22 | ||||
Other, net | 102 | 125 | |||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | (34 | ) | 466 | ||||
Financing receivables | (287 | ) | 126 | ||||
Inventory | (146 | ) | (132 | ) | |||
Accounts payable | (107 | ) | (231 | ) | |||
Taxes on earnings | (1,009 | ) | (22 | ) | |||
Restructuring | (226 | ) | (326 | ) | |||
Other assets and liabilities(a) | 817 | (2,529 | ) | ||||
Net cash provided by (used in) operating activities | 142 | (1,190 | ) | ||||
Cash flows from investing activities: | |||||||
Investment in property, plant and equipment | (669 | ) | (923 | ) | |||
Proceeds from sale of property, plant and equipment | 115 | 84 | |||||
Purchases of available-for-sale securities and other investments | (3 | ) | (7 | ) | |||
Maturities and sales of available-for-sale securities and other investments | — | 1 | |||||
Financial collateral posted | (706 | ) | — | ||||
Financial collateral returned | 144 | — | |||||
Payments made in connection with business acquisitions, net of cash acquired | — | (292 | ) | ||||
Proceeds from business divestitures, net(b) | — | (20 | ) | ||||
Net cash used in investing activities | (1,119 | ) | (1,157 | ) | |||
Cash flows from financing activities: | |||||||
Short-term borrowings with original maturities less than 90 days, net | (3 | ) | 24 | ||||
Proceeds from debt, net of issuance costs | 270 | 248 | |||||
Payment of debt | (253 | ) | (262 | ) | |||
Net proceeds (payments) related to stock-based award activities (c) | 17 | (42 | ) | ||||
Repurchase of common stock | (742 | ) | (641 | ) | |||
Net transfer of cash and cash equivalents to Everett | (28 | ) | — | ||||
Net transfer of cash and cash equivalents to Seattle | (70 | ) | — | ||||
Cash dividends paid | (120 | ) | (109 | ) | |||
Net cash used in financing activities | (929 | ) | (782 | ) | |||
Decrease in cash and cash equivalents | (1,906 | ) | (3,129 | ) | |||
Cash and cash equivalents at beginning of period | 9,579 | 12,987 | |||||
Cash and cash equivalents at end of period | $ | 7,673 | $ | 9,858 |
(a) For the three months ended January 31, 2017, the amount includes $1.9 billion of pension funding payments associated with the separation and merger of Everett SpinCo, Inc. with Computer Sciences Corporation.