Citrix 2007 Annual Report Download - page 82

CITRIX SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
2007 2006 2005
(In thousands)
Operating activities
Net income ........................................................................ $214,483 $ 182,997 $ 165,609
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangible assets ................................................... 46,983 36,136 28,388
Depreciation and amortization of property and equipment ................................ 38,214 27,447 21,970
Stock-based compensation expense ................................................. 65,491 61,596 7,403
In-process research and development ................................................ 9,800 1,000 7,000
Provision for doubtful accounts .................................................... 2,578 1,978 146
Provision for product returns ...................................................... 3,517 4,608 5,954
Provision for inventory reserves .................................................... 3,351 3,584 383
Deferred income tax benefit ....................................................... (634) (4,351) (14,771)
Tax effect of stock-based compensation .............................................. 15,529 40,600 35,045
Excess tax benefit from exercise of stock options ...................................... (17,753) (51,915) —
Other non-cash items ............................................................ 2,231 478 158
Total adjustments to reconcile net income to net cash provided by operating activities ..... 169,307 121,161 91,676
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable ......................................................... (22,805) (68,271) (28,424)
Inventories ................................................................. (6,316) (5,869) (1,707)
Prepaid expenses and other current assets ........................................ (24,841) (10,092) 2,482
Other assets ................................................................ (7,166) (2,868) 234
Deferred tax assets, net ....................................................... 62,892 11,617 5,541
Accounts payable ........................................................... 9,502 9,554 12,052
Accrued expenses ........................................................... 16,230 10,660 (5,333)
Income tax payable .......................................................... (11,892) 10,562 (868)
Deferred revenues ........................................................... 86,815 69,599 54,864
Other liabilities ............................................................. (62,091) (334) (2,983)
Total changes in operating assets and liabilities, net of effects of acquisitions ............ 40,328 24,558 35,858
Net cash provided by operating activities ................................................. 424,118 328,716 293,143
Investing activities
Purchases of available for-sale investments ............................................... (639,414) (709,565) (183,245)
Proceeds from sales of available-for-sale investments ....................................... 153,759 170,503 396,580
Proceeds from maturities of available-for-sale investments ................................... 305,278 215,318 141,652
Purchases of property and equipment .................................................... (85,919) (52,051) (26,377)
Cash paid for acquisitions, net of cash acquired ............................................ (148,055) (61,462) (168,347)
Cash paid for licensing agreements ..................................................... (3,250) — —
Net cash (used in) provided by investing activities ......................................... (417,601) (437,257) 160,263
Financing activities
Proceeds from issuance of common stock ................................................ 118,395 230,656 101,592
Excess tax benefit from exercise of stock options .......................................... 17,753 51,915 —
Stock repurchases, net ................................................................ (259,970) (274,161) (174,350)
Proceeds from term loan and revolving credit facility ....................................... — — 175,000
Payments on debt ................................................................... (8,000) (34,850) (144,000)
Cash paid for financing fees ........................................................... — — (1,098)
Net cash used in financing activities ..................................................... (131,822) (26,440) (42,856)
Change in cash and cash equivalents .................................................... (125,305) (134,981) 410,550
Cash and cash equivalents at beginning of year ............................................ 349,054 484,035 73,485
Cash and cash equivalents at end of year ................................................. $223,749 $ 349,054 $ 484,035
Supplemental Cash Flow Information
Non-cash investing activity—(Decrease) increase in restricted cash equivalents and investments ..... $ (80) $ 87 $ (85,323)
Non-cash financing activity—Fair value of stock issued in connection with acquisitions ............ $232,275 $ 290 $ 154,267
Cash paid for income taxes ............................................................ $ 43,064 $ 2,330 $ 33,755
Cash paid for interest ................................................................ $ 247 $ 432 $ 927
See accompanying notes.
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