Table of Contents APPLIED MATERIALS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Fiscal Year 2019 2018 2017 Cash flows from operating activities: Net income $ 2,706  $ 3,038  $ 3,519  Adjustments required to reconcile net income to cash provided by operating activities: Depreciation and amortization 363  457  407  Deferred income taxes 49  71  (12) Other (19) 4  (9) Share-based compensation 263  258  220  Changes in operating assets and liabilities, net of amounts acquired: Accounts receivable (207) 16  (37) Inventories 248  (1,014) (809) Other current and non-current assets (86) (199) (156) Accounts payable and accrued expenses (247) 170  371  Contract liabilities 135  75  133  Income taxes payable 44  886  121  Other liabilities (2) 25  41  Cash provided by operating activities 3,247  3,787  3,789  Cash flows from investing activities: Capital expenditures (441) (622) (345) Cash paid for acquisitions, net of cash acquired (28) (6) (68) Proceeds from sales and maturities of investments 1,940  3,276  2,743  Purchases of investments (1,914) (2,077) (4,856) Cash provided by (used in) investing activities (443) 571  (2,526) Cash flows from financing activities: Debt borrowings, net of issuance costs —  —  2,176  Debt repayments —  —  (205) Proceeds from common stock issuances 145  124  97  Common stock repurchases (2,403) (5,283) (1,172) Tax withholding payments for vested equity awards (86) (164) (125) Payments of dividends to stockholders (771) (605) (430) Cash provided by (used in) financing activities (3,115) (5,928) 341  Increase (decrease) in cash and cash equivalents (311) (1,570) 1,604  Cash and cash equivalents — beginning of year 3,440  5,010  3,406  Cash and cash equivalents — end of year $ 3,129  $ 3,440  $ 5,010  Supplemental cash flow information: Cash payments for income taxes $ 522  $ 300  $ 194  Cash refunds from income taxes $ 22  $ 63  $ 61  Cash payments for interest $ 219  $ 219  $ 186  See accompanying Notes to Consolidated Financial Statements. 65