PayPal Holdings, Inc. (1) Reconciliation of Operating Cash Flow to Free Cash Flow Three Months Ended Year Ended December 31, September 30, June 30, March 31, 2022 2022 2022 2022 2022 (In millions/unaudited) Net cash provided by operating activities $ 1,591 $ 1,755 $ 1,250 $ 1,217 $ 5,813 Less: Purchases of property and equipment (158) (182) (175) (191) (706) Free cash flow $ 1,433 $ 1,573 $ 1,075 $ 1,026 $ 5,107 Three Months Ended Year Ended December 31, September 30, June 30, March 31, 2021 2021 2021 2021 2021 (In millions/unaudited) Net cash provided by operating activities $ 1,640 $ 1,308 $ 1,277 $ 1,572 $ 5,797 Less: Purchases of property and equipment (213) (227) (247) (221) (908) Free cash flow $ 1,427 $ 1,081 $ 1,030 $ 1,351 $ 4,889 Three Months Ended Year Ended December 31, September 30, June 30, March 31, 2020 2020 2020 2020 2020 (In millions/unaudited) Net cash provided by operating activities $ 1,575 $ 1,486 $ 1,860 $ 1,298 $ 6,219 Less: Purchases of property and equipment (226) (241) (193) (206) (866) Free cash flow $ 1,349 $ 1,245 $ 1,667 $ 1,092 $ 5,353 (1) Beginning with the fourth quarter of 2022, we reclassified certain cash flows related to our collateral security arrangements for derivative instruments from cash flows from operating activities to cash flows from investing activities and cash flows from financing activities within the condensed consolidated statements of cash flows. See the section titled "Cash Flow Reclassification" for further details. Q4 & FY 2022 Results 17