Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

EMC Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Net income	2,172)	2,894)	3,093)	2,886)	2,609)
Depreciation and amortization	1,907)	1,864)	1,665)	1,528)	1,422)
Non-cash interest expense on debt	—)	1)	62)	46)	103)
Non-cash restructuring and other special charges	40)	19)	8)	13)	(1)
Stock-based compensation expense	1,091)	1,031)	935)	895)	823)
Provision for (recovery of) doubtful accounts	55)	10)	(1)	39)	20)
Deferred income taxes, net	(235)	(396)	(202)	(118)	(19)
Excess tax benefits from stock-based compensation	(55)	(102)	(116)	(261)	(362)
Gain on previously held interests in strategic investments and joint venture	—)	(101)	—)	(32)	—)
Impairment of strategic investment	—)	33)	—)	—)	—)
Other, net	6)	20)	40)	20)	5)
Accounts and notes receivable	385)	(309)	(377)	(535)	(392)
Inventories	(196)	(149)	(408)	(459)	(393)
Other assets	47)	345)	269)	174)	(62)
Accounts payable	(75)	167)	380)	89)	35)
Accrued expenses	(333)	(286)	(162)	(64)	158)
Income taxes payable	(53)	314)	222)	661)	337)
Deferred revenue	596)	1,126)	1,475)	1,367)	1,509)
Other liabilities	34)	42)	40)	11)	(121)
Changes in assets and liabilities, net of acquisitions	405)	1,250)	1,439)	1,244)	1,071)
Adjustments to reconcile net income to net cash provided by operating activities	3,214)	3,629)	3,830)	3,376)	3,060)
Net cash provided by operating activities	5,386)	6,523)	6,923)	6,262)	5,669)
Additions to property, plant and equipment	(902)	(979)	(943)	(819)	(801)
Capitalized software development costs	(567)	(509)	(465)	(419)	(442)
Purchases of short- and long-term available-for-sale securities	(7,252)	(9,982)	(11,250)	(6,347)	(7,180)
Sales of short- and long-term available-for-sale securities	5,205)	8,722)	5,292)	4,983)	5,121)
Maturities of short- and long-term available-for-sale securities	1,970)	2,651)	2,845)	1,049)	1,130)
Business acquisitions, net of cash acquired	(1,336)	(1,973)	(770)	(2,136)	(537)
Purchases of strategic and other related investments	(182)	(144)	(131)	(117)	(329)
Sales of strategic and other related investments	235)	101)	35)	71)	29)
Joint venture funding	—)	(360)	(411)	(228)	(383)
Proceeds from divestiture of business	—)	—)	38)	58)	—)
(Increase) decrease in restricted cash	75)	(78)	—)	—)	—)
Purchase of leasehold interest	—)	—)	—)	—)	(151)
Net cash used in investing activities	(2,754)	(2,551)	(5,760)	(3,905)	(3,544)
Proceeds from the issuance of EMC’s common stock	322)	503)	342)	560)	673)
Proceeds from the issuance of VMware’s common stock	126)	164)	197)	253)	338)
EMC repurchase of EMC’s common stock	(2,063)	(2,969)	(3,015)	(685)	(2,000)
EMC purchase of VMware’s common stock	—)	—)	(160)	(290)	(400)
VMware repurchase of VMware’s common stock	(1,125)	(700)	(508)	(468)	(526)
Excess tax benefits from stock-based compensation	55)	102)	116)	261)	362)
Payment of long-term and short-term obligations	—)	(1,665)	(46)	(1,715)	(27)
Net proceeds from the issuance of long-term and short-term obligations	1,295)	—)	5,460)	5)	3)
Contributions from non-controlling interests	5)	7)	105)	—)	—)
Interest rate contracts settlement	—)	—)	—)	(70)	(141)
Dividend payment	(907)	(879)	(415)	—)	—)
Net cash provided by (used in) financing activities	(2,292)	(5,437)	2,076)	(2,149)	(1,719)
Effect of exchange rate changes on cash and cash equivalents	(134)	(83)	(62)	15)	5)
Net increase (decrease) in cash and cash equivalents	206)	(1,548)	3,177)	223)	412)
Cash and cash equivalents at beginning of period	6,343)	7,891)	4,714)	4,531)	4,119)
Cash and cash equivalents at end of period	6,549)	6,343)	7,891)	4,754)	4,531)

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

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Cash flow statement item	Description	The company
Net cash provided by operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	EMC Corp. net cash provided by operating activities decreased from 2013 to 2014 and from 2014 to 2015.
Net cash used in investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	EMC Corp. net cash used in investing activities increased from 2013 to 2014 but then slightly decreased from 2014 to 2015.
Net cash provided by (used in) financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	EMC Corp. net cash provided by (used in) financing activities decreased from 2013 to 2014 but then slightly increased from 2014 to 2015.

EMC Corp. (NYSE:EMC)

Cash Flow Statement