Adaptec 2007 Annual Report Download - page 65

Table of Contents
PMC-Sierra, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended
December 30,
2007
December 31,
2006
December 31,
2005
Cash flows from operating activities:
Net (loss) income $ (49,104) $ (99,892) $ 27,986
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Stock-based compensation 35,334 37,908 215
In-process research and development — 35,300 —
Amortization of intangible assets 45,891 36,990 2,344
Deferred income taxes 5,409 4,541 —
Depreciation of property and equipment 10,959 10,820 9,563
Amortization of debt issuance costs 968 968 191
Loss (gain) on investments and other assets 512 1,269 (1,255)
Foreign exchange loss (gain) 18,221 (446) 3,410
Reversal of write-down of excess inventory, net — — (1,904)
Gain on disposal of property and equipment — — (184)
Loss on extinguishment of debt — — 1,618
Impairment of purchased intangible assets 1,855 — 538
Changes in operating assets and liabilities, net of the effect of acquisitions:
Accounts receivable (2,059) 2,203 (11,868)
Inventories (156) (6,181) 3,681
Prepaid expenses and other current assets 1,998 (15,416) 3,489
Accounts payable and accrued liabilities 6,933 (14,296) 6,416
Income taxes payable 13,710 40,569 1,339
Accrued restructuring costs (1,595) (2,576) 2,095
Deferred income 2,334 336 3,357
Net cash provided by operating activities 91,210 32,097 51,031
Cash flows from investing activities:
Acquisition of business, net of cash acquired — (419,436) —
Purchases of short-term available-for-sale investments — — (138,759)
Proceeds from sales and maturities of short-term available-for-sale investments — 222,357 173,422
Purchases of long-term available-for-sale investments in bonds and notes — — (35,231)
Proceeds from sales and maturities of long-term available-for-sale investments in bonds and notes — — 71,021
Purchases of investments and other assets — — (5,693)
Proceeds from sales of other investments — 5,445 772
Proceeds from refund of wafer fabrication deposits — — 1,634
Purchases of property and equipment (9,824) (8,011) (5,156)
Proceeds from sale of property — — 2,604
Purchase of intangible assets (8,754) (5,144) (3,454)
Net cash (used in) provided by investing activities (18,578) (204,789) 61,160
Cash flows from financing activities:
Repurchase of convertible subordinated notes — — (70,177)
Proceeds from issuance of senior convertible notes — — 225,000
Payment of debt issuance costs — — (6,788)
Proceeds from issuance of common stock 31,980 26,040 24,064
Net cash provided by financing activities 31,980 26,040 172,099
Effect of exchange rate changes on cash and cash equivalents 1,396 — —
Net increase (decrease) in cash and cash equivalents 106,008 (146,652) 284,290
Cash and cash equivalents, beginning of the year 258,914 405,566 121,276
Cash and cash equivalents, end of the year $ 364,922 $ 258,914 $ 405,566
Supplemental disclosures of cash flow information:
Cash paid for interest $ 5,063 $ 5,063 $ 1,085
Cash refund of income taxes 4,975 2,241 3,224
Cash paid for income taxes 1,596 6,891 3,200
Supplemental disclosures of non-cash investing and financing activities:
Issuance of common stock and assumption of stock options on acquisition $ — $ 254,546 $ —
Conversion of PMC-Sierra special shares into common stock 61 629 1,072
See notes to the consolidated financial statements.
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Source: PMC SIERRA INC, 10-K, February 22, 2008