Adaptec 2008 Annual Report Download - page 53

PMC-Sierra, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended
December 28,
2008
December 30,
2007
December 31,
2006
Cash flows from operating activities:
Net income (loss) ............................................. $133,923 $ (49,104) $ (99,892)
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Depreciation of property and equipment ....................... 10,158 10,959 10,820
Amortization of intangible assets ............................. 45,712 45,891 36,990
Amortization of deferred income taxes ........................ (2,043) 5,409 4,541
Unrealized foreign exchange loss, net ......................... (7,853) 18,221 (446)
Amortization of debt issuance costs ........................... 595 968 968
Loss on investments and other assets .......................... — 512 1,269
Stock-based compensation .................................. 24,838 35,334 37,908
Asset impairment ......................................... 4,300 — —
Gain on repurchase of Senior convertible notes, net .............. (15,172) — —
(Gain) loss on disposal of property and equipment ............... (32) — —
In-process research and development ......................... — — 35,300
Impairment of purchased intangible assets ..................... — 1,855 —
Changes in operating assets and liabilities, net of the effect of
acquisitions:
Accounts receivable ................................... (829) (2,059) 2,203
Inventories .......................................... 613 (156) (6,181)
Prepaid expenses and other current assets .................. 6,945 1,998 (15,416)
Accounts payable and accrued liabilities ................... (42,739) 6,933 (14,296)
Deferred taxes and income taxes payable .................. (72,163) 13,710 40,569
Accrued restructuring costs ............................. (4,973) (1,595) (2,576)
Deferred income ...................................... (2,474) 2,334 336
Net cash provided by operating activities .............. 78,806 91,210 32,097
Cash flows from investing activities:
Acquisition of business, net of cash acquired ....................... — — (419,436)
Proceeds from sales and maturities of short-term available-for-sale
investments ................................................ — — 222,357
Proceeds from sale of investments and other assets .................. — — 5,445
Purchases of property and equipment ............................. (6,802) (9,824) (8,011)
Purchase of intangible assets .................................... (5,913) (8,754) (5,144)
Purchase of short-term investments ............................... (209,685) — —
Net cash used in investing activities .................. (222,400) (18,578) (204,789)
Cash flows from financing activity:
Repurchase of convertible subordinated notes ....................... (139,341) — —
Proceeds from issuance of common stock .......................... 16,510 31,980 26,040
Net cash (used in) provided by financing activities ....... (122,831) 31,980 26,040
Effect of exchange rate changes on cash and cash equivalents .............. (658) 1,396 —
Net (decrease) increase in cash and cash equivalents ..................... (267,083) 106,008 (146,652)
Cash and cash equivalents, beginning of the year ........................ 364,922 258,914 405,566
Cash and cash equivalents, end of the year ............................. $ 97,839 $364,922 $ 258,914
Supplemental disclosures of cash flow information:
Cash paid for interest ...................................... $ 3,813 $ 5,063 $ 5,063
Cash refund of income taxes ................................ 1,316 4,975 2,241
Cash paid for income taxes ................................. 23,195 1,596 6,891
Supplemental disclosures of non-cash investing and financing activities:
Issuance of common stock and assumption of vested stock options
on acquisition .......................................... $ — $ — $254,546
Conversion of PMC-Sierra special shares into common stock ...... 17 61 629
See notes to the consolidated financial statements.
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