SanDisk 2006 Annual Report Download - page 107

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SANDISK CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
2006 2005 2004
Fiscal Years Ended
(In thousands)
Cash flows from operating activities:
Net income . . . ............................................................ $ 198,896 $ 386,384 $ 266,616
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred taxes ............................................................ (25,636) (1,538) 9,326
(Gain) loss on investment in foundries . . . ......................................... (2,480) 8,480 12,927
(Recovery) loss on unauthorized sales of UMC shares . . . ............................... — (6,193)
Depreciation and amortization .................................................. 135,585 65,774 38,862
Provision for doubtful accounts . . . .............................................. 3,316 (272) 4,581
FlashVision wafer cost adjustment . . .............................................. — (2,263) (1,282)
Share-based compensation expense . .............................................. 100,641 —
Tax benefit from share-based compensation . ......................................... (57,393) —
Write-off of acquired in-process technology .......................................... 225,600 —
Other non-cash charges ...................................................... (313) 9,833 3,764
Changes in operating assets and liabilities:
Accounts receivable from product revenues ......................................... (115,061) (134,207) (14,880)
Inventory ............................................................. (23,660) (135,162) (79,526)
Other assets ............................................................ (12,094) (31,148) 1,681
Accounts payable . ....................................................... (64,228) 148,234 (6,298)
Accounts payable and other current liabilities, related parties . . . ........................... 24,617 24,657 (3,149)
Other liabilities . . . ....................................................... 210,273 142,083 1,201
Totaladjustments....................................................... 399,167 94,471 (38,986)
Net cash provided by operating activities ............................................. 598,063 480,855 227,630
Cash flows from investing activities:
Purchases of short and long term investments ......................................... (2,135,973) (803,967) (1,147,142)
Proceeds from sale and maturities of short and long term investments .......................... 1,497,120 722,986 810,111
Notes receivable from Matrix Semiconductor, Inc. . . .................................... (20,000) —
Acquisition of property and equipment, net . ......................................... (176,474) (134,477) (125,842)
Acquisition of technology license . . .............................................. — (4,500) —
Consideration paid in a business combination ......................................... — (9,061)
Notes receivable from FlashVision Ltd. . . . ......................................... 23,538 (34,249) (33,564)
Notes receivable from Flash Partners Ltd. . . ......................................... (95,445) —
Notes receivable from Tower Semiconductor Ltd. . . .................................... (9,705) —
Investment in Flash Partners Ltd. and Flash Alliance Ltd. . . ............................... (132,209) (21,790) (23,129)
Investment in foundries ...................................................... — (3,500) (704)
Cash acquired in business combinations, net of acquisition costs . . . ........................... 51,087
Proceeds from other sales . . . .................................................. — 6,333
Net cash (used in) investing activities . .............................................. (978,061) (299,497) (522,998)
Cash flows from financing activities:
Proceeds from issuance of convertible debt, net of issuance costs . . ........................... 1,125,500 —
Proceeds from issuance of common stock under employee programs ........................... 96,304 115,398 24,648
Purchase of convertible bond hedge . .............................................. (386,090) —
Proceeds from issuance of warrants . .............................................. 308,672 —
Cash distribution to minority interest .............................................. (4,491) —
Tax benefit from share-based compensation . ......................................... 57,393
Net cash provided by financing activities ............................................. 1,197,288 115,398 24,648
Effect of changes in foreign currency exchange rates on cash . . ........................... 1,352 1,507 36
Net increase (decrease) in cash and cash equivalents . . . ............................... 818,642 298,263 (270,684)
Cash and cash equivalents at beginning of the year ....................................... 762,058 463,795 734,479
Cash and cash equivalents at end of the year ........................................... $1,580,700 $ 762,058 $ 463,795
Supplemental disclosure of cash flow information:
Cash paid for income taxes . . . .................................................. $ (81,100) $(164,345) $ (159,436)
Cash paid for interest expense . . .................................................. $ (6,965) $ (17) $ (6,750)
Non-cash financing and investing activities:
Conversion of subordinated notes .................................................. $ $ $ 150,000
Issuance of shares in a business combination . . ......................................... $1,607,450 $ — $ 4,935
The accompanying notes are an integral part of these consolidated financial statements.
F-8