SanDisk 2012 Annual Report Download - page 155

This is a TAB type table. Insert
conts here. Annual Report
Liquidity and Capital Resources
Cash Flows. Our cash flows were as follows:
FY 2012
Percent
Change FY 2011
Percent
Change FY 2010
(In millions, except percentages)
Net cash provided by operating activities . . . $ 529.9 (50%) $ 1,053.7 (27%) $ 1,451.9
Net cash used in investing activities ....... (574.4) 14% (667.0) 75% (2,714.6)
Net cash provided by (used in) financing
activities .......................... (125.1) (166%) (47.1) (105%) 985.2
Effect of changes in foreign currency
exchange rates on cash ............... (2.4) (85%) (1.3) (121%) 6.3
Net increase (decrease) in cash and cash
equivalents ......................... $ (172.0) (151%) $ 338.3 225% $ (271.2)
Operating Activities. Cash provided by operating activities is generated by net income adjusted for certain
non-cash items and changes in assets and liabilities. The decrease in cash provided by operations in fiscal year
2012, compared to fiscal year 2011, resulted primarily from lower net income. Cash flow from accounts
receivable was a lower usage of cash compared with the prior year due to lower sales in fiscal year 2012
compared to the prior year. Cash flow from inventory was a lower usage of cash compared to the prior year due
to inventory increasing at a slower rate compared to the prior year. Cash flow from other assets increased
compared to the prior year primarily due to a prior year prepayment of building-related costs for Flash Forward.
Cash flow related to accounts payable to related parties decreased primarily due to the timing of payments to
Flash Ventures as compared to the prior year. Cash flow from other liabilities was a usage of cash compared to
an inflow of cash in the prior year primarily due to higher tax payments in fiscal year 2012 related to fiscal year
2011 higher profitability.
The decrease in cash provided by operations in fiscal year 2011, compared to fiscal year 2010, resulted
primarily from higher inventory and other working capital increases. Inventory increased primarily due to the
growth in our business and the production ramp at Flash Forward, which began production in the third quarter of
fiscal year 2011. Cash flow from accounts receivable decreased, as reflected by higher accounts receivable levels
in fiscal year 2011, compared with the prior year, due to increased revenue in fiscal year 2011. Cash flow from
other assets decreased compared to the prior year primarily due to a decrease in tax-related receivables compared
to the prior year and a prepayment of building-related costs for Flash Forward. Accounts payable trade increased
primarily due to the timing of payments and an increase in volume as compared to the prior year, resulting in an
increase in cash provided. Cash flow from other liabilities in fiscal year 2011 decreased, as compared to the prior
year, primarily as a result of lower accrued payroll and related expenses.
Investing Activities. Net cash used in investing activities for fiscal year 2012 was primarily related to
acquisition of property and equipment of ($488) million, net purchases of short and long-term marketable
securities of ($331) million and acquisitions of FlashSoft and Schooner, net of cash acquired of ($70) million,
partially offset by net proceeds from Flash Ventures of $319 million.
Net cash used in investing activities for fiscal year 2011 was primarily related to the acquisition of Pliant of
($318) million, acquisition of property and equipment of ($193) million, purchases of technology and other
assets of ($100) million and net loans and investments made to Flash Ventures of ($66) million.
Financing Activities. Net cash used in financing activities for fiscal year 2012 was primarily related to
stock repurchases of ($230) million, partially offset by cash received from employee stock programs of
$86 million.
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