Debt borrowings, net of issuance costs

[Table of Contents](#ie3b4dd133255408488aec6011c49b801_10)  
APPLIED MATERIALS, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Fiscal Year | 2021 |  | 2020 |  | 2019 |
|  |  |  |  |  |  |
| Cash flows from operating activities: |  |  |  |  |  |
| Net income | $ | 5,888  |  |  | $ | 3,619  |  |  | $ | 2,706  |  |
| Adjustments required to reconcile net income to cash provided by operating activities: |  |  |  |  |  |
| Depreciation and amortization | 394  |  |  | 376  |  |  | 363  |  |
|  |  |  |  |  |  |
|  |  |  |  |  |  |
|  |  |  |  |  |  |
| Severance and related charges | 148  |  |  | —  |  |  | —  |  |
|  |  |  |  |  |  |
|  |  |  |  |  |  |
| Deferred income taxes | 80  |  |  | 80  |  |  | 49  |  |
| Other | (70) |  |  | 60  |  |  | (19) |  |
|  |  |  |  |  |  |
|  |  |  |  |  |  |
| Share-based compensation | 346  |  |  | 307  |  |  | 263  |  |
| Changes in operating assets and liabilities, net of amounts acquired: |  |  |  |  |  |
| Accounts receivable | (1,989) |  |  | (427) |  |  | (207) |  |
| Inventories | (405) |  |  | (421) |  |  | 248  |  |
| Other current and non-current assets | (602) |  |  | (161) |  |  | (86) |  |
|  |  |  |  |  |  |
| Accounts payable and accrued expenses | 465  |  |  | 327  |  |  | (247) |  |
| Contract liabilities | 755  |  |  | (16) |  |  | 135  |  |
| Income taxes payable | 396  |  |  | (10) |  |  | 44  |  |
| Other liabilities | 36  |  |  | 70  |  |  | (2) |  |
| Cash provided by operating activities | 5,442  |  |  | 3,804  |  |  | 3,247  |  |
| Cash flows from investing activities: |  |  |  |  |  |
| Capital expenditures | (668) |  |  | (422) |  |  | (441) |  |
| Cash paid for acquisitions, net of cash acquired | (12) |  |  | (107) |  |  | (28) |  |
|  |  |  |  |  |  |
| Proceeds from sales and maturities of investments | 1,471  |  |  | 1,754  |  |  | 1,940  |  |
| Purchases of investments | (2,007) |  |  | (1,355) |  |  | (1,914) |  |
| Cash used in investing activities | (1,216) |  |  | (130) |  |  | (443) |  |
| Cash flows from financing activities: |  |  |  |  |  |
| Debt borrowings, net of issuance costs | —  |  |  | 2,979  |  |  | —  |  |
| Debt repayments | —  |  |  | (2,882) |  |  | —  |  |
| Proceeds from common stock issuances | 175  |  |  | 174  |  |  | 145  |  |
| Common stock repurchases | (3,750) |  |  | (649) |  |  | (2,403) |  |
| Tax withholding payments for vested equity awards | (178) |  |  | (172) |  |  | (86) |  |
| Payments of dividends to stockholders | (838) |  |  | (787) |  |  | (771) |  |
|  |  |  |  |  |  |
| Cash used in financing activities | (4,591) |  |  | (1,337) |  |  | (3,115) |  |
|  |  |  |  |  |  |
| Increase (decrease) in cash, cash equivalents and restricted cash equivalents | (365) |  |  | 2,337  |  |  | (311) |  |
| Cash, cash equivalents and restricted cash equivalents — beginning of period | 5,466  |  |  | 3,129  |  |  | 3,440  |  |
| Cash, cash equivalents and restricted cash equivalents — end of period | $ | 5,101  |  |  | $ | 5,466  |  |  | $ | 3,129  |  |
| Reconciliation of cash, cash equivalents, and restricted cash equivalents |  |  |  |  |  |
| Cash and cash equivalents | $ | 4,995  |  |  | $ | 5,351  |  |  | $ | 3,129  |  |
| Restricted cash equivalents included in deferred income taxes and other assets | 106  |  |  | 115  |  |  | —  |  |
| Total cash, cash equivalents, and restricted cash equivalents | $ | 5,101  |  |  | $ | 5,466  |  |  | $ | 3,129  |  |
| Supplemental cash flow information: |  |  |  |  |  |
| Cash payments for income taxes | $ | 851  |  |  | $ | 542  |  |  | $ | 522  |  |
| Cash refunds from income taxes | $ | 27  |  |  | $ | 68  |  |  | $ | 22  |  |
| Cash payments for interest | $ | 205  |  |  | $ | 219  |  |  | $ | 219  |  |

See accompanying Notes to Consolidated Financial Statements.68
