CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

September 28, 2013 September 29, 2012 September 24, 2011

Cash and cash equivalents, beginning of the year $ 10,746 $ 9,815 $ 11,261

Operating activities:

Net income 37,037 41,733 25,922

Adjustments to reconcile net income to cash generated by

Operating activities:

Depreciation and amortization 6,757 3,277 1,814

Share-based compensation expense 2,253 1,740 1,168

Deferred income tax expense 1,141 4,405 2,868

Changes in operating assets and liabilities:

Accounts receivable, net (2,172) (5,551) 143

Inventories (973) (15) 275

Vendor non-trade receivables 223 (1,414) (1,934)

Other current and non-current assets 1,080 (3,162) (1,391)

Accounts payable 2,340 4,467 2,515

Deferred revenue 1,459 2,824 1,654

Other current and non-current liabilities 4,521 2,552 4,495

Cash generated by operating activities 53,666 50,856 37,529

Investing activities:

Purchases of marketable securities (148,489) (151,232) (102,317)

Proceeds from maturities of marketable securities 20,317 13,035 20,437

Proceeds from sales of marketable securities 104,130 99,770 49,416

Payments made in connection with

business acquisitions, net (496) (350) (244)

Payments for acquisition of property?

plant and equipment (8,165) (8,295) (4,260)

Payments for acquisition of intangible assets (911) (1,107) (3,192)

Other (160) (48) (259)

Cash used in investing activities (33,774) (48,227) (40,419)

Financing activities:

Proceeds from issuance of common stock 530 665 831

Excess tax benefits from equity awards 701 1,351 1,133

Taxes paid related to net share settlement of equity awards (1,082) (1,226) (520)

Dividends and dividend equivalent rights paid (10,564) (2,488) 0

Repurchase of common stock (22,860) 0 0

Proceeds from issuance of long-term debt, net 16,896 0 0

Cash generated by/(used in) financing activities (16,379) (1,698) 1,444

Increase/(decrease) in cash and cash equivalents 3,513 931 (1,446)

Cash and cash equivalents, end of the year $ 14,259 $ 10,746 $ 9,815

Supplemental cash flow disclosure:

Cash paid for income taxes, net $ 9,128 $ 7,682 $ 3,338

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