SanDisk 2004 Annual Report Download - page 52

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Table of Contents
SANDISK CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Fiscal Years Ended
2004 2003 2002
(In thousands)
Cash flows from operating activities:
Net income $ 266,616 $ 168,859 $ 36,240
Adjustments to reconcile net income to net cash provided by operating
activities:
Deferred taxes 9,326 2,152 (7,729)
(Gain) loss on investment in foundries 12,927 (3,746) 15,163
(Recovery) loss on unauthorized sales of UMC shares (6,193) 18,339 —
Depreciation and amortization 38,862 22,952 21,321
Provision for doubtful accounts 4,581 1,400 1,795
FlashVision wafer cost adjustment (1,282) (1,613) 8,128
Other non−cash charges 3,764 3,143 2,952
Changes in operating assets and liabilities:
Accounts receivable (14,880) (104,550) (37,658)
Inventories (79,526) (28,301) (33,314)
Prepaid expenses and other current assets (246) 7,697 (5,217)
Deposits and other assets 1,927 (4,116) 1,771
Accounts payable (6,298) 51,296 8,356
Accrued payroll and related expenses 13,472 16,543 6,411
Income taxes receivable/payable (11,950) 27,720 30,717
Other current liabilities, related parties (3,149) 29,104 (2,408)
Other accrued liabilities 8,959 9,196 6,911
Deferred income on shipments to distributors and retailers and
deferred revenue (15,489) 57,682 51,129
Other non−current liabilities 6,245 (1,225) 2,404
Total adjustments (38,950) 103,673 70,732
Net cash provided by operating activities 227,666 272,532 106,972
Cash flows from investing activities:
Purchases of short−term investments (1,147,142) (622,580) (377,690)
Proceeds from sale of short term investments 810,111 327,457 246,417
Proceeds from sale of investments in foundries — 21,627 —
Release of restricted cash — — 64,734
Acquisition of property and equipment (125,842) (54,623) (16,638)
Acquisition of technology license — (1,500) (606)
Consideration paid in a business combination (9,061) — —
Notes receivable from FlashVision (33,564) — —
Investment in FlashVision — — 4,199
Investment in Flash Partners (23,129) — —
Investment in foundries (704) (11,001) (26,005)
Proceeds from other sales 6,333 4,880 —
Net cash (used in) investing activities (522,998) (335,740) (105,589)
Cash flows from financing activities:
Net proceeds from issuance of convertible subordinated notes — — 24,366
Issuance of common stock in public offering — 521,608 —
Issuance of common stock under employee programs 24,648 55,294 5,537
Net cash provided by financing activities 24,648 576,902 29,903
Net increase (decrease) in cash and cash equivalents (270,684) 513,694 31,286
Cash and cash equivalents at beginning of the year 734,479 220,785 189,499
Cash and cash equivalents at end of the year $ 463,795 $ 734,479 $ 220,785
Supplemental disclosure of cash flow information:
Cash paid for income taxes $ (159,436) $ (44,244) $ (10,076)
Cash paid for interest expense $ (6,750) $ (6,750) $ (6,019)
Non−cash financing and investing activities:
Conversion of subordinated notes $ 150,000 $ — $ —
Issuance of shares in a business combination $ 4,935 $ — $ —