SanDisk 2007 Annual Report Download - page 103

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SANDISK CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
December 30,
2007
December 31,
2006
January 1,
2006
Fiscal Years Ended
(In thousands)
Cash flows from operating activities:
Net income . .................................................... $ 218,357 $ 198,896 $ 386,384
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred and other taxes . .......................................... (35,188) (25,636) (1,538)
(Gain) loss on equity investments . ..................................... 7,844 (2,480) 8,480
Depreciation and amortization . . . ..................................... 255,743 135,585 65,774
Provision for doubtful accounts . . ..................................... 3,530 3,316 (272)
FlashVision wafer cost adjustment . ..................................... — — (2,263)
Share-based compensation expense ..................................... 133,010 100,641 —
Excess tax benefit from share-based compensation ............................ (18,375) (57,393) —
Write-off of acquired in-process technology . . . ............................. — 225,600 —
Other non-cash charges (income) . ..................................... 4,877 (313) 9,833
Changes in operating assets and liabilities:
Accounts receivable from product revenues . . . ............................ 145,657 (115,061) (134,207)
Inventory . . . ................................................ (57,586) (23,660) (135,162)
Other assets . . . ............................................... (34,789) (12,094) (31,148)
Accounts payable trade . .......................................... 23,772 (64,228) 148,234
Accounts payable to related parties . . . ................................. 20,966 24,617 24,657
Other liabilities. ............................................... (14,891) 210,273 142,083
Total adjustments . . . .......................................... 434,570 399,167 94,471
Net cash provided by operating activities . . ................................. 652,927 598,063 480,855
Cash flows from investing activities:
Purchases of short and long-term investments . . . ............................ (3,717,897) (2,135,973) (807,467)
Proceeds from sale and maturities of short and long-term investments . . .............. 3,399,583 1,497,120 722,986
Notes receivable from Matrix Semiconductor, Inc. ............................ — — (20,000)
Acquisition of property and equipment, net ................................ (258,954) (176,474) (134,477)
Notes receivable proceeds (issuance), FlashVision Ltd. . . ....................... 37,512 23,538 (34,249)
Notes receivable from Flash Partners Ltd. ................................. (525,252) (95,445) —
Notes receivable from Tower Semiconductor Ltd. ............................ — (9,705) —
Investment in Flash Partners Ltd. and Flash Alliance Ltd. ....................... (125,547) (132,209) (21,790)
Purchased technology and other assets . . ................................. (27,803) — (4,500)
Cash acquired in business combinations, net of acquisition costs . . .................. — 51,087 —
Net cash used in investing activities . ..................................... (1,218,358) (978,061) (299,497)
Cash flows from financing activities:
Proceeds from issuance of convertible senior notes, net of issuance costs. .............. — 1,125,500 —
Proceeds from employee stock programs . ................................. 100,311 96,304 115,398
Proceeds from debt financing ......................................... 9,803 — —
Purchase of convertible bond hedge ..................................... — (386,090) —
Proceeds from issuance of warrants ..................................... — 308,672 —
Distribution to minority interest . . ..................................... (9,880) (4,491) —
Excess tax benefit from share-based compensation ............................ 18,375 57,393 —
Share repurchase programs .......................................... (299,607) — —
Net cash provided by (used in) financing activities . ............................ (180,998) 1,197,288 115,398
Effect of changes in foreign currency exchange rates on cash ....................... (522) 1,352 1,507
Net increase (decrease) in cash and cash equivalents . ....................... (746,951) 818,642 298,263
Cash and cash equivalents at beginning of the year . . . .......................... 1,580,700 762,058 463,795
Cash and cash equivalents at end of the year . . ............................... $ 833,749 $ 1,580,700 $ 762,058
Supplemental disclosure of cash flow information:
Cash paid for income taxes . .......................................... $ (193,300) $ (81,100) $ (164,345)
Cash paid for interest expense .......................................... $ (15,168) $ (6,965) $ (17)
Non-cash financing and investing activities:
Issuance of shares in a business combination ................................. $ — $1,607,450 $ —
The accompanying notes are an integral part of these consolidated financial statements.
F-7