Western Digital 2006 Annual Report Download - page 55

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WESTERN DIGITAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
June 30,
2006
July 1,
2005
July 2,
2004
Years Ended
(as adjusted) (as adjusted)
Cash flows from operating activities
Net income .............................................. $394.6 $ 196.0 $ 149.8
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization ............................... 159.8 131.0 100.4
In-process research and development expense ..................... — — 25.6
Stock-based compensation .................................. 37.0 4.8 2.6
Deferred income taxes ..................................... (22.3) — —
Other non-cash items ...................................... 4.9 — —
Changes in:
Accounts receivable ..................................... (77.3) (90.3) (66.5)
Inventories ........................................... (52.2) (4.2) (41.9)
Accounts payable ....................................... 64.6 134.2 54.3
Accrued expenses ....................................... (27.4) 100.2 (26.6)
Advances to suppliers .................................... (79.4) (12.5) —
Prepaid expenses and other ................................ (0.8) 1.5 (7.7)
Net cash provided by operating activities .................... 401.5 460.7 190.0
Cash flows from investing activities
Capital expenditures, net ..................................... (301.9) (233.4) (131.7)
Purchases of short-term investments ............................. (109.0) (95.4) (32.3)
Redemption of short-term investments ........................... 74.2 14.5 —
Asset acquisition ........................................... — — (94.8)
Net cash used in investing activities ....................... (336.7) (314.3) (258.8)
Cash flows from financing activities
Issuance of common stock under employee plans .................... 77.6 57.8 23.9
Repurchase of common stock .................................. (53.5) (45.0) (16.0)
Net proceeds from long-term debt .............................. — — 13.8
Repayment of long-term debt ................................. (23.4) (19.5) (0.6)
Net cash provided by (used in) financing activities ............. 0.7 (6.7) 21.1
Net increase (decrease) in cash and cash equivalents .................. 65.5 139.7 (47.7)
Cash and cash equivalents, beginning of year ....................... 485.2 345.5 393.2
Cash and cash equivalents, end of year............................ $550.7 $ 485.2 $ 345.5
Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes ...................... $ 4.9 $ 4.9 $ 3.1
Cash paid during the period for interest .......................... $ 1.7 $ 2.9 $ 1.3
Supplemental disclosure of non-cash investing and financing
activities:
Equipment acquired under capital lease ........................... $ 14.7 $ 4.3 $ 18.5
The accompanying notes are an integral part of these consolidated financial statements.
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