HP (HPQ) 8-K/A Results of Operations and Financial Condition

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)

	Three Months Ended October 31, 2004			Fiscal Year Ended October 31, 2004
Cash flows from operating activities:
Net earnings	$	1,091		$	3,497
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization		602			2,395
Provision for bad debt and inventory		175			465
Losses (gains) on investments		1			(4	)
In-process research and development charges		--			37
Acquisition-related charges		24			54
Restructuring charges		13			114
Deferred taxes on earnings		(191	)		26
Other, net		72			93
Changes in assets and liabilities:
Accounts and financing receivables		(1,716	)		(696	)
Inventory		(391	)		(1,341	)
Accounts payable		846			3
Taxes on earnings		179			(32	)
Other assets and liabilities		1,348			1,078
Restructuring		(66	)		(601	)
Net cash provided by operating activities		1,987			5,088
Cash flows from investing activities:
Investment in property, plant and
equipment, net		(739	)		(2,126	)
Proceeds from sale of property, plant
and equipment		99			447
Purchases of investments		(204	)		(715	)
Maturities and sales of investments		279			1,064
Net cash paid for business acquisitions,
net of acquisition costs		(277	)		(1,124	)
Net cash used in investing activities		(842	)		(2,454	)
Cash flows from financing activities:
Increase (decrease) in notes payable and
short-term borrowings, net		7			(172	)
Issuance of long-term debt		--			9
Payment of long-term debt		(61	)		(285	)
Issuance of common stock under employee
plans		32			570
Repurchase of common stock		(2,205	)		(3,309	)
Dividends		(240	)		(972	)
Net cash used in financing activities		(2,467	)		(4,159	)
Decrease in cash and cash equivalents		(1,322	)		(1,525	)
Cash and cash equivalents at beginning of period		13,985			14,188
Cash and cash equivalents at end of period	$	12,663		$	12,663