Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
12 Months Ended
Sep. 25, 2016
Sep. 27, 2015
Sep. 28, 2014
Operating Activities:      
Net income $ 5,702 $ 5,268 $ 7,964
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization expense 1,428 1,214 1,150
Indefinite and long-lived asset impairment charges 107 317 642
Income tax provision (less than) in excess of income tax payments (200) 47 298
Gain on sale of wireless spectrum (380) 0 0
Gain on sale of discontinued operations 0 0 (665)
Non-cash portion of share-based compensation expense 943 1,026 1,059
Incremental tax benefits from share-based compensation (8) (103) (280)
Net realized gains on marketable securities and other investments (288) (500) (826)
Impairment losses on marketable securities and other investments 172 200 180
Other items, net 77 (16) (17)
Changes in assets and liabilities:      
Accounts receivable, net (232) 550 (281)
Inventories (49) 93 (155)
Other assets 246 (793) 108
Trade accounts payable 541 (908) 619
Payroll, benefits and other liabilities (352) (328) (617)
Unearned revenues (307) (561) (292)
Net cash provided by operating activities 7,400 5,506 8,887
Investing Activities:      
Capital expenditures (539) (994) (1,185)
Purchases of available-for-sale securities (18,015) (15,400) (13,581)
Proceeds from sales and maturities of available-for-sale securities 14,386 15,080 13,587
Purchases of trading securities (177) (1,160) (3,075)
Proceeds from sales and maturities of trading securities 779 1,658 2,824
Purchases of other marketable securities 0 0 (220)
Proceeds from sales of other marketable securities 450 0 0
Acquisitions and other investments, net of cash acquired (812) (3,019) (895)
Proceeds from sale of wireless spectrum 232 0 0
Proceeds from sales of property, plant and equipment 16 266 37
Proceeds from sale of discontinued operations, net of cash sold 0 0 788
Other items, net 192 (3) 81
Net cash used by investing activities (3,488) (3,572) (1,639)
Financing Activities:      
Proceeds from short-term debt 8,949 4,083 0
Repayment of short-term debt (8,200) (3,083) 0
Proceeds from long-term debt 0 9,937 0
Proceeds from issuance of common stock 668 787 1,439
Repurchases and retirements of common stock (3,923) (11,246) (4,549)
Dividends paid (2,990) (2,880) (2,586)
Incremental tax benefits from share-based compensation 8 103 280
Other items, net (34) 38 (64)
Net cash used by financing activities (5,522) (2,261) (5,480)
Effect of exchange rate changes on cash and cash equivalents (4) (20) (3)
Net (decrease) increase in cash and cash equivalents (1,614) (347) 1,765
Cash and cash equivalents at beginning of period 7,560 7,907 6,142
Cash and cash equivalents at end of period $ 5,946 $ 7,560 $ 7,907