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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.
60
Year Ended December 31,
2011
2010
2009
Cash flows from operating activities:
Net income
$
91,368
$
50,909
$
9,333
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
14,735
13,439
12,360
Purchase premium amortization (discount accretion) on investments
986
468
(4
)
Non
-
cash stock
-
based compensation
13,762
12,201
11,024
Income tax benefit associated with stock option exercises and cancellations
3,519
3,559
136
Excess tax benefit from stock
-
based compensation
(3,672
)
(3,470
)
(869
)
Deferred income taxes
(4,621
)
(8,435
)
(4,865
)
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable
(34,576
)
(63,878
)
(24,578
)
Inventories
(30,039
)
(36,804
)
21,650
Prepaid expenses and other assets
(7,935
)
(3,220
)
103
Accounts payable
28,131
20,074
9,008
Accrued employee compensation
2,765
13,090
3,863
Other accrued liabilities
9,374
21,794
(272
)
Deferred revenue
12,555
5,432
598
Income taxes payable
(342
)
1,192
10,610
Net cash provided by operating activities
96,010
26,351
48,097
Cash flows from investing activities:
Purchases of short
-
term investments
(228,871
)
(185,128
)
(89,827
)
Proceeds from sale of short
-
term investments
227,669
115,000
25,000
Purchase of property and equipment
(8,211
)
(8,720
)
(3,945
)
Loans issued, net of loan repaid
—
(
102
)
—
Payments for patents
—
(
1,270
)
—
Cost method investment
—
(
3,009
)
—
Payments made in connection with business acquisitions
(37,509
)
(12,000
)
(3,539
)
Net cash used in investing activities
(46,922
)
(95,229
)
(72,311
)
Cash flows from financing activities:
Purchase and retirement of common stock
(926
)
(738
)
(282
)
Proceeds from exercise of stock options
29,139
18,915
1,861
Proceeds from issuance of common stock under employee stock purchase plan
1,752
1,202
1,129
Excess tax benefit from stock
-
based compensation
3,672
3,470
869
Net cash provided by financing activities
33,637
22,849
3,577
Net increase (decrease) in cash and cash equivalents
82,725
(46,029
)
(20,637
)
Cash and cash equivalents, at beginning of period
126,173
172,202
192,839
Cash and cash equivalents, at end of period
$
208,898
$
126,173
$
172,202
Supplemental cash flow information:
Cash paid for income taxes
$
34,365
$
44,083
$
14,401