Three Months Ended August 31,
(Dollars in millions) 2013 Actual Constant 2012
Provision for income taxes
Provision for income taxes in the first quarter of fiscal 2014 decreased, relative to the provision for income taxes of fiscal 2013, due to a tax favorable change in the jurisdictional mix of our earnings, and the effect of acquisition related settlements with tax authorities.
Liquidity and Capital Resources
August 31, May 31, (Dollars in millions) 2013 Change 2013 Working capital
Working capital: The increase in working capital as of
August 31, 2013in comparison to May 31, 2013was primarily due to our issuance of €2.0 billion and $3.0 billionof long-term senior notes in July 2013, the favorable impact to our net current assets resulting from our net income during the first quarter of fiscal 2014, and, to a lesser extent, cash proceeds from stock option exercises. This increase was partially offset by the reclassification of $1.5 billionof senior notes due July 2014from long-term to current, cash used for repurchases of our common stock, cash used to pay dividends to our stockholders, and cash used for acquisitions, all of which occurred during the first quarter of fiscal 2014. Our working capital may be impacted by some of the aforementioned factors in future periods, the amounts and timing of which are variable. 44
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Cash, cash equivalents and marketable securities: Cash and cash equivalents primarily consist of deposits held at major banks, Tier-1 commercial paper and other securities with original maturities of 90 days or less. Marketable securities primarily consist of time deposits held at major banks, Tier-1 commercial paper, corporate notes, and certain other securities. The increase in cash, cash equivalents and marketable securities at
August 31, 2013in comparison to May 31, 2013was due to an increase in cash generated from our operating activities, our issuance of €2.0 billion and $3.0 billionof senior notes in July 2013, and to a lesser extent, cash proceeds from stock option exercises. This increase was partially offset by $3.0 billionof repurchases of our common stock, $1.3 billionof net cash paid for acquisitions and the payment of cash dividends to our stockholders. Cash, cash equivalents and marketable securities included $29.9 billionheld by our foreign subsidiaries as of August 31, 2013, a significant portion of which was generated from the earnings of these foreign subsidiaries that we consider as indefinitely reinvested in our foreign operations outside the United States. These undistributed earnings that are considered as indefinitely reinvested overseas would be subject to U.S. income tax if repatriated to the United States. The amount of cash, cash equivalents and marketable securities that we report in U.S. Dollars for a significant portion of the cash held by our foreign subsidiaries is subject to translation adjustments caused by changes in foreign currency exchange rates as of the end of each respective reporting period (the offset to which is recorded to accumulated other comprehensive (loss) income in our consolidated balance sheets and is also presented as a line item in our condensed consolidated statements of comprehensive income included elsewhere in this Quarterly Report). As the U.S. Dollar generally strengthened against certain major international currencies during the first quarter of fiscal 2014, the amount of cash, cash equivalents and marketable securities that we reported in U.S. Dollars for these subsidiaries decreased as of August 31, 2013relative to what we would have reported using constant currency rates from our May 31, 2013balance sheet date.