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.

Hewlett Packard Enterprise Co., consolidated cash flow statement

US$ in millions

12 months ended:	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019	Oct 31, 2018
Net earnings (loss) attributable to HPE	2,025)	868)	3,427)	(322)	1,049)	1,908)
Depreciation and amortization	2,616)	2,480)	2,597)	2,625)	2,535)	2,576)
Impairment of goodwill	—)	905)	—)	865)	—)	88)
Stock-based compensation expense	428)	391)	382)	274)	268)	286)
Provision for inventory and doubtful accounts	230)	262)	176)	308)	240)	198)
Restructuring charges	242)	214)	620)	769)	221)	550)
Deferred taxes on earnings	(67)	(249)	(167)	(294)	1,079)	2,229)
Earnings from equity interests	(245)	(215)	(180)	(67)	(20)	(38)
Dividends received from equity investees	200)	197)	184)	165)	156)	164)
Other, net	31)	310)	202)	163)	204)	(158)
Accounts receivable	577)	(186)	(591)	(461)	374)	(220)
Financing receivables	(607)	694)	(165)	(487)	(410)	(366)
Inventory	400)	(713)	(1,959)	(527)	46)	(260)
Accounts payable	(1,655)	1,707)	1,608)	(225)	(525)	(27)
Taxes on earnings	(34)	150)	(73)	(122)	(1,093)	(4,516)
Restructuring	(275)	(334)	(527)	(478)	(331)	(647)
Other assets and liabilities	562)	(1,888)	337)	54)	204)	1,197)
Changes in operating assets and liabilities, net of acquisitions	(1,032)	(570)	(1,370)	(2,246)	(1,735)	(4,839)
Adjustments to reconcile net Net earnings (loss) attributable to HPE to net cash provided by operating activities	2,403)	3,725)	2,444)	2,562)	2,948)	1,056)
Net cash provided by operating activities	4,428)	4,593)	5,871)	2,240)	3,997)	2,964)
Investment in property, plant and equipment	(2,828)	(3,122)	(2,502)	(2,383)	(2,856)	(2,956)
Proceeds from sale of property, plant and equipment	602)	602)	354)	703)	597)	1,094)
Purchases of investments	(15)	(55)	(60)	(101)	(39)	(33)
Proceeds from maturities and sales of investments	9)	262)	15)	48)	26)	98)
Financial collateral posted	(1,443)	(148)	(903)	(644)	(403)	(1,547)
Financial collateral received	1,152)	374)	805)	665)	744)	1,467)
Payments made in connection with business acquisitions, net of cash acquired	(761)	—)	(505)	(866)	(1,526)	(207)
Proceeds from business divestitures, net	—)	—)	—)	—)	—)	13)
Net cash used in investing activities	(3,284)	(2,087)	(2,796)	(2,578)	(3,457)	(2,071)
Short-term borrowings with original maturities less than 90 days, net	(47)	100)	(36)	(9)	(53)	5)
Proceeds from debt, net of issuance costs	4,725)	3,296)	3,022)	7,007)	3,517)	2,457)
Payment of debt	(4,887)	(3,992)	(5,465)	(5,099)	(2,203)	(4,138)
Cash settlement for derivative hedging debt	(7)	(8)	—)	—)	—)	—)
Net proceeds (payments) related to stock-based award activities	(106)	(53)	(29)	(36)	48)	116)
Repurchase of common stock	(421)	(512)	(213)	(355)	(2,249)	(3,568)
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, net of contributions	—)	(6)	(18)	(7)	—)	(9)
Cash dividends paid to shareholders	(619)	(621)	(625)	(618)	(608)	(570)
Net cash provided by (used in) financing activities	(1,362)	(1,796)	(3,364)	883)	(1,548)	(5,592)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	36)	(279)	—)	—)	—)	—)
Increase (decrease) in cash, cash equivalents and restricted cash	(182)	431)	(289)	545)	(1,008)	(4,699)
Cash, cash equivalents and restricted cash at beginning of period	4,763)	4,332)	4,621)	4,076)	5,084)	9,579)
Cash, cash equivalents and restricted cash at end of period	4,581)	4,763)	4,332)	4,621)	4,076)	4,880)

Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).

Net earnings (loss) attributable to HPE: The net earnings displayed volatility, with a significant loss in 2020 followed by a strong recovery in 2021. The earnings peaked at 3427 million USD in 2021, declined sharply in 2022, and then increased to 2025 million USD in 2023.
Depreciation and amortization: This expense remained relatively stable over the years, fluctuating between 2480 and 2626 million USD, indicating consistent asset utilization and amortization practices.
Impairment of goodwill: Goodwill impairment showed spikes in 2020 and 2022, with 865 and 905 million USD respectively, indicating periodic reassessments of asset values.
Stock-based compensation expense: There was a steady increase in stock-based compensation expenses from 2018 through 2023, suggesting growing reliance on equity incentives to retain employees.
Provision for inventory and doubtful accounts: This provision fluctuated, peaking in 2020 at 308 million USD, with a notable decrease in 2021 and 2023, reflecting ongoing adjustments to inventory and credit risk management.
Restructuring charges: Restructuring expenses experienced significant variability, peaking in 2020 at 769 million USD and gradually decreasing afterward, implying major organizational changes during that period.
Deferred taxes on earnings: Deferred tax amounts changed dramatically, moving from high positive figures in early years to negative values from 2020 onwards, indicating adjustments in tax positions and possibly changes in deferred tax assets or liabilities.
Earnings from equity interests and Dividends received from equity investees: Earnings from equity interests were consistently negative and have worsened from -38 million USD in 2018 to -245 million USD in 2023. In contrast, dividends received from these investments steadily increased over the years.
Other, net: The "Other, net" category showed positive but fluctuating balances, with a peak in 2022 at 310 million USD and a substantial decrease in 2023 to 31 million USD.
Working capital components (Accounts receivable, Financing receivables, Inventory, Accounts payable): Accounts receivable showed fluctuating variations, shifting from negative to positive values, with a strong increase in 2023. Financing receivables showed declines in 2018-2020, a positive spike in 2022, and a negative movement in 2023, reflecting changes in lending or financing activities. Inventory adjustments were notably negative in 2021 and 2022 before rising again in 2023. Accounts payable showed volatility with negative changes in some years and positive spikes in 2021 and 2022, followed by a sharp decline in 2023.
Taxes on earnings: Taxes on earnings were substantially negative in 2018, improved significantly by 2022, before slightly decreasing again in 2023, reflecting variability in tax liabilities.
Restructuring (liabilities): Restructuring liabilities consistently decreased year-over-year from 2018 through 2023, indicating a steady reduction in obligations related to restructuring activities.
Other assets and liabilities: After positive balances in earlier years, there was a significant negative entry in 2022, followed by a partial recovery in 2023, indicating fluctuations in non-core asset and liability balances.
Changes in operating assets and liabilities, net of acquisitions: These changes showed diminishing negative impacts over time, suggesting improving operational cash management.
Adjustments to reconcile net earnings to net cash from operating activities: Adjustments fluctuated but remained substantial throughout, peaking in 2022, indicating ongoing non-cash items impacting cash flow.
Net cash provided by operating activities: The cash flows from operations experienced considerable volatility, peaking in 2021, but remained strong overall, evidencing robust cash-generating capability despite earnings fluctuations.
Investment in property, plant, and equipment: Capital expenditures were consistently high and somewhat stable, indicating ongoing investments in operational capacity.
Proceeds from sale of property, plant and equipment: Proceeds varied year to year but generally trended lower compared to capital expenditures, resulting in net cash outflows from property investments.
Purchases and proceeds from investments: Purchases of investments were relatively low and steady, while proceeds from maturities and sales showed minor fluctuations, with a notable spike in 2022, implying selective portfolio management.
Financial collateral posted and received: Significant swings occurred in collateral postings and receipts, with larger bilateral transactions in 2018 and 2023, indicating varying collateral needs or financial arrangements.
Payments for business acquisitions and proceeds from divestitures: Payments for acquisitions declined post-2019 but remained substantial, while proceeds from divestitures were minimal and inconsistent, generally indicating a net investment stance.
Net cash used in investing activities: Investing activities consistently resulted in net cash outflows, with the highest outflow in 2019, reflecting continuous investment spending.
Short-term borrowings and net debt proceeds/payments: Short-term borrowings were minimal and volatile. Net debt proceeds were high in 2020 and increased again in 2023, supporting liquidity or investment needs. Debt payments remained substantial, indicating active debt management.
Cash settlement for derivative hedging of debt and stock-based award activities: Derivative settlements were minor in 2022 and 2023. Stock-based award activity shifted from net proceeds in earlier years to net payments in recent years, aligning with increased stock-based compensation expense.
Repurchase of common stock: Repurchases were significant in 2018 and 2019 but decreased sharply afterwards, although a modest buyback program remained in place.
Cash dividends paid: Dividends paid to shareholders were stable across the years, showing consistent shareholder returns.
Net cash provided by (used in) financing activities: Financing activities showed predominantly negative cash flows, except for 2020, reflecting net debt repayments and cash outflows for dividends and repurchases.
Effect of exchange rate changes on cash: There were minor impacts due to exchange rate movements, negative in 2022 and slightly positive in 2023.
Increase (decrease) in cash, cash equivalents and restricted cash: Cash balances fluctuated, with significant decreases in 2018 and 2019, a small increase in 2020, and minor variances thereafter.
Cash, cash equivalents, and restricted cash at beginning and end of period: Period opening and closing cash balances reflected the net cash flow variances, showing a downward trend from 2018 to 2019 followed by modest recoveries in succeeding years.

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Hewlett Packard Enterprise Co. (NYSE:HPE)

Cash Flow Statement