XML 16 R6.htm IDEA: XBRL DOCUMENT v3.7.0.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 9 Months Ended
Jul. 31, 2017
Jul. 31, 2016
Cash flows from operating activities:    
Net (loss) earnings $ (180) $ 2,859
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities:    
Depreciation and amortization 2,369 2,903
Stock-based compensation expense 349 432
Provision for doubtful accounts 14 38
Provision for inventory 68 128
Restructuring charges 558 841
Deferred taxes on earnings 145 (1,012)
Excess tax benefit from stock-based compensation (116) (9)
Gain on H3C divestiture 0 (2,169)
Loss from equity interests 24 72
Other, net 392 114
Changes in operating assets and liabilities, net of acquisitions:    
Accounts receivable 250 988
Financing receivables (127) (252)
Inventory (341) 3
Accounts payable 652 (683)
Taxes on earnings (602) 781
Restructuring (688) (746)
Other assets and liabilities [1] (2,704) (1,542)
Net cash provided by operating activities 63 2,746
Cash flows from investing activities:    
Investment in property, plant and equipment (2,405) (2,412)
Proceeds from sale of property, plant and equipment 403 317
Purchases of available-for-sale securities and other investments (31) (540)
Maturities and sales of available-for-sale securities and other investments 14 499
Financial collateral posted (384) 0
Financial collateral returned 49 0
Payments made in connection with business acquisitions, net of cash acquired (2,050) (22)
(Payments) proceeds from business divestitures, net [2] (20) 2,788
Net cash (used in) provided by investing activities (4,424) 630
Cash flows from financing activities:    
Short-term borrowings with original maturities less than 90 days, net 30 (51)
Proceeds from debt, net of issuance costs [3] 3,340 782
Restricted cash - Seattle debt issuance [3] (2,620) 0
Payment of debt (2,296) (568)
Settlement of cash flow hedge 5 3
Issuance of common stock under employee stock plans 366 79
Repurchase of common stock (1,936) (2,662)
Net transfer from former Parent 0 491
Cash dividend from Everett [4] 3,008 0
Net transfer of cash and cash equivalents to Everett (559) 0
Excess tax benefit from stock-based compensation 116 9
Cash dividends paid (323) (281)
Net cash used in financing activities (869) (2,198)
(Decrease) increase in cash and cash equivalents (5,230) 1,178
Cash held for sale [5] 0 (277)
Cash and cash equivalents at beginning of period 12,987 9,842
Cash and cash equivalents at end of period 7,757 10,743
Supplemental schedule of non-cash investing and financing activities:    
Net assets transferred to Everett $ 322 $ 0
[1] For the nine months ended July 31, 2017, the amount includes $1.9 billion of pension funding payments associated with the spin-off and merger of Everett SpinCo, Inc. with Computer Sciences Corporation.
[2] For the nine months ended July 31, 2017, the amount represents a working capital adjustment payment made in connection with the divestiture of the Company's controlling interest in the H3C Technologies and China-based Server, Storage and Technology Services businesses ("H3C divestiture") in May 2016.
[3] During the third quarter of fiscal 2017, Seattle SpinCo, Inc., the Company's wholly-owned subsidiary, entered into a term loan facility in the principal amount of $2.6 billion. Just prior to the September 1, 2017 spin-off of Seattle SpinCo, Inc., the proceeds from the term loan were used to fund a $2.5 billion dividend payment from Seattle SpinCo, Inc. to HPE. The obligation under the debt issuance was retained by Seattle SpinCo, Inc. See Note 14, "Borrowings", for more information on the loan arrangement.
[4] Represents a $3.0 billion cash dividend payment from Everett SpinCo, Inc. to HPE, the proceeds of which were funded from the issuance of $3.5 billion of debt by Everett SpinCo, Inc. The obligations under the debt issuance were retained by Everett SpinCo, Inc. See Note 14, "Borrowings", for more information on the funding arrangement.
[5] During the second quarter of fiscal 2016, the Company received all of the necessary regulatory approvals related to its partnership with Tsinghua Holdings, and as such, the transaction met all of the held for sale criteria. The transaction closed in May 2016. The impact of assets and liabilities reclassified as held for sale during the period was not considered in the changes in operating assets and liabilities, net of acquisitions reconciliation within cash flows from operating activities.