Cash flows from financing activities: The changes in cash flows from financing
activities primarily relate to borrowings and repayments related to our debt
instruments as well as stock repurchases, dividend payments and proceeds from
stock option exercises.
Net cash provided by financing activities in the first quarter of fiscal 2014
increased in comparison to net cash used for financing activities in the first
quarter of fiscal 2013 primarily due to our issuance of €2.0 billion and
Net cash provided by operating activities
$ 13,993Capital expenditures(1) (664 ) 6% (627 ) Free cash flow $ 14,1816% $ 13,366Net income $ 11,082 $ 10,175Free cash flow as percent of net income 128% 131%
(1) Derived from capital expenditures as reported in cash flows from investing
activities as per our condensed consolidated statements of cash flows
presented in accordance with U.S. GAAP.
Long-Term Customer Financing: We offer certain of our customers the option to acquire our software products, hardware systems products and services offerings through separate long-term payment contracts. We generally sell these contracts that we have financed for our customers on a non-recourse basis to financial institutions within 90 days of the contracts' dates of execution. We record the transfers of amounts due from customers to financial institutions as sales of financial assets because we are considered to have surrendered control of these financial assets. We financed
$236 millionand $146 million, respectively, or approximately 14% and 9%, respectively, of our new software licenses and cloud software subscriptions revenues in the first quarter of fiscal 2014 and 2013, and $34 millionand $27 million, respectively, or approximately 5% and 3%, respectively, of our hardware systems products revenues in the first quarters of fiscal 2014 and 2013.