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. 24, 2017
Sep. 25, 2016
Sep. 27, 2015
Operating Activities:      
Net income $ 2,465 $ 5,702 $ 5,268
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization expense 1,461 1,428 1,214
Indefinite and long-lived asset impairment charges 76 107 317
Income tax provision (less than) in excess of income tax payments (400) (200) 47
Gain on sale of wireless spectrum 0 (380) 0
Non-cash portion of share-based compensation expense 914 943 1,026
Incremental tax benefits from share-based compensation (40) (8) (103)
Net realized gains on marketable securities and other investments (530) (288) (500)
Impairment losses on marketable securities and other investments 177 172 200
Other items, net 146 77 (16)
Changes in assets and liabilities:      
Accounts receivable, net (1,104) (232) 550
Inventories (200) (49) 93
Other assets 169 246 (793)
Trade accounts payable (45) 541 (908)
Payroll, benefits and other liabilities 1,835 (352) (328)
Unearned revenues (231) (307) (561)
Net cash provided by operating activities 4,693 7,400 5,506
Investing Activities:      
Capital expenditures (690) (539) (994)
Purchases of available-for-sale securities (19,062) (18,015) (15,400)
Proceeds from sales and maturities of available-for-sale securities 41,715 14,386 15,080
Purchases of trading securities 0 (177) (1,160)
Proceeds from sales and maturities of trading securities 0 779 1,658
Purchases of other marketable securities (710) 0 0
Proceeds from sales and maturities of other marketable securities 706 450 0
Deposits of investments designated as collateral (2,000) 0 0
Acquisitions and other investments, net of cash acquired (1,544) (812) (3,019)
Proceeds from sale of wireless spectrum 0 232 0
Proceeds from sales of property, plant and equipment 28 16 266
Other items, net 20 192 (3)
Net cash provided (used) by investing activities 18,463 (3,488) (3,572)
Financing Activities:      
Proceeds from short-term debt 8,558 8,949 4,083
Repayment of short-term debt (9,309) (8,200) (3,083)
Proceeds from long-term debt 10,953 0 9,937
Proceeds from issuance of common stock 497 668 787
Repurchases and retirements of common stock (1,342) (3,923) (11,246)
Dividends paid (3,252) (2,990) (2,880)
Incremental tax benefits from share-based compensation 40 8 103
Other items, net (266) (34) 38
Net cash provided (used) by financing activities 5,879 (5,522) (2,261)
Effect of exchange rate changes on cash and cash equivalents 48 (4) (20)
Net increase (decrease) in cash and cash equivalents 29,083 (1,614) (347)
Cash and cash equivalents at beginning of period 5,946 7,560 7,907
Cash and cash equivalents at end of period $ 35,029 $ 5,946 $ 7,560