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Table of Contents
NETGEAR, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
The accompanying notes are an integral part of these consolidated financial statements.
53
Year Ended December 31,
2008
2007
2006
Cash flows from operating activities:
Net income
$
18,050
$
45,954
$
41,132
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
13,261
12,685
7,078
Purchase premium amortization (discount accretion) on investments
56
(1,044
)
(1,835
)
Non
-
cash stock
-
based compensation
11,323
8,879
4,505
Income tax benefit associated with stock option exercises
81
8,364
4,163
Excess tax benefit from stock
-
based compensation
(143
)
(7,053
)
(3,806
)
Deferred income taxes
(2,029
)
(1,044
)
(3,252
)
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable
19,490
(36,962
)
(15,332
)
Inventories
(29,135
)
(1,588
)
(26,059
)
Prepaid expenses and other assets
(2,175
)
(6,346
)
(6,582
)
Accounts payable
4,740
14,818
906
Accrued employee compensation
(8,908
)
3,886
4,060
Other accrued liabilities
4,942
12,659
9,497
Deferred revenue
13,889
(616
)
3,911
Income taxes payable
4,085
781
4,682
Net cash provided by operating activities
47,527
53,373
23,068
Cash flows from investing activities:
Purchases of short
-
term investments
(10,133
)
(75,670
)
(173,191
)
Proceeds from sale of short
-
term investments
37,700
148,765
149,036
Purchase of property and equipment
(15,390
)
(9,839
)
(5,918
)
Payments made in connection with business acquisitions, net of cash acquired
(24,635
)
(57,466
)
(7,600
)
Net cash provided by (used in) investing activities
(12,458
)
5,790
(37,673
)
Cash flows from financing activities:
Purchase and retirement of common stock
(12,229
)
(150
)
—
Proceeds from exercise of stock options
1,008
12,487
7,433
Proceeds from issuance of common stock under employee stock purchase plan
1,353
1,206
1,100
Excess tax benefit from stock
-
based compensation
143
7,053
3,806
Net cash provided by (used in) financing activities
(9,725
)
20,596
12,339
Net increase (decrease) in cash and cash equivalents
25,344
79,759
(2,266
)
Cash and cash equivalents, at beginning of period
167,495
87,736
90,002
Cash and cash equivalents, at end of period
$
192,839
$
167,495
$
87,736
Supplemental cash flow information:
Cash paid for income taxes
$
25,177
$
25,349
$
22,284