VMware 2011 Annual Report Download - page 67

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The accompanying notes are an integral part of the consolidated financial statements.
60
For the Year Ended December 31,
2011
2010
2009
Operating activities:
Net income
$
723,936
$
357,439
$
197,098
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
315,871
260,551
198,486
Stock-based compensation, excluding amounts capitalized
335,153
291,691
231,456
Excess tax benefits from stock-based compensation
(224,503
)
(223,457
)
(26,214
)
Gain on sale of Terremark investment
(56,000
)
—
—
Other
21,420
13,083
2,816
Changes in assets and liabilities, net of acquisitions:
Accounts receivable
(263,366
)
(77,121
)
(193,610
)
Other assets
(75,879
)
(79,431
)
(14,181
)
Due to/from EMC, net
(18,370
)
(28,508
)
(64,762
)
Accounts payable
(16,513
)
8,881
(17,886
)
Accrued expenses
115,025
120,880
124,685
Income taxes receivable from EMC
269,258
2,508
107,927
Income taxes payable
79,183
89,439
32,779
Deferred income taxes, net
(19,663
)
(56,948
)
(40,476
)
Unearned revenue
840,081
495,382
447,498
Net cash provided by operating activities
2,025,633
1,174,389
985,616
Investing activities:
Additions to property and equipment
(230,091
)
(131,695
)
(103,375
)
Purchase of leasehold interest (see Note G)
(151,083
)
—
—
Capitalized software development costs
(73,998
)
(64,149
)
(68,611
)
Purchases of available-for-sale securities
(2,667,888
)
(2,101,907
)
—
Sales of available-for-sale securities
816,351
389,251
—
Maturities of available-for-sale securities
974,413
127,054
—
Sale of strategic investments
78,513
2,648
—
Business acquisitions, net of cash acquired
(303,610
)
(292,970
)
(356,278
)
Transfer of net assets under common control
(22,393
)
(185,580
)
—
Other investing
(31,187
)
(4,594
)
(34,116
)
Net cash used in investing activities
(1,610,973
)
(2,261,942
)
(562,380
)
Financing activities:
Proceeds from issuance of common stock
337,618
431,306
227,666
Repurchase of common stock
(526,203
)
(338,527
)
—
Excess tax benefits from stock-based compensation
224,503
223,457
26,214
Shares repurchased for tax withholdings on vesting of restricted stock
(123,787
)
(86,179
)
(31,467
)
Net cash provided by (used in) financing activities
(87,869
)
230,057
222,413
Net increase (decrease) in cash and cash equivalents
326,791
(857,496
)
645,649
Cash and cash equivalents at beginning of the period
1,628,965
2,486,461
1,840,812
Cash and cash equivalents at end of the period
$
1,955,756
$
1,628,965
$
2,486,461
Supplemental disclosures of cash flow information:
Cash paid for interest
$
5,806
$
6,194
$
10,963
Cash paid (refunded) for taxes
(268,954
)
23,428
(74,362
)
Non-cash items:
Changes in capital additions, accrued but not paid
$
11,736
$
(1,338
)
$
(11,303
)
Changes in tax withholdings on vesting of restricted stock, accrued but not paid
(1,870
)
—
—
Fair value of stock options assumed in acquisition —
—
16,187