Western Digital 1998 Annual Report Download - page 38

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WESTERN DIGITAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Years ended
June 29,
1996 June 28,
1997 June 27,
1998
Cash flows from operating activities
Net income (loss) ............................................................................................ $ 96,894 $267,596 $ (290,217)
Adjustments to reconcile net income (loss) to net cash
provided by (used for) operating activities:
Depreciation and amortization....................................................................... 51,643 63,485 106,550
Interest accrued on convertible debentures.................................................... — — 9,059
Gain on sale of multimedia business.............................................................. (17,275) — —
Changes in assets and liabilities, excluding the effects
of business sales (Note 8):
Accounts receivable................................................................................... (107,532) (136,079) 176,539
Inventories.................................................................................................. (69,180) (81,852) 37,958
Prepaid expenses and other assets.............................................................. (5,478) 2,184 2,830
Accounts payable, accrued compensation and accrued expenses ............... 110,311 139,683 (65,126)
Deferred income taxes................................................................................ 417 (1,570) (16,267)
Other assets ................................................................................................ (1,519) 712 (299)
Net cash provided by (used for) operating activities............................. 58,281 254,159 (38,973)
Cash flows from investing activities
Capital expenditures, net ................................................................................. (108,696) (155,958) (198,641)
Proceeds from sale of businesses (Note 8)...................................................... 85,486 — —
Purchases of short-term investments................................................................ (34,685) — —
Sales and maturities of short-term investments................................................ 88,264 36,598 —
Decrease (increase) in other assets ................................................................. (7,188) (7,587) 9,758
Net cash provided by (used for) investing activities ............................. 23,181 (126,947) (188,883)
Cash flows from financing activities
Proceeds from issuance of convertible debentures (Note 3)............................ — — 460,129
Proceeds from issuance of bank debt (Note 3) ................................................ — — 50,000
Debt issuance costs.......................................................................................... — — (18,707)
Exercise of stock options, including tax benefit............................................... 7,309 33,946 11,132
Proceeds from ESPP shares issued.................................................................. 8,377 9,127 12,684
Common stock repurchase program (Note 6)................................................... (132,114) (144,574) (35,828)
Net cash provided by (used for) financing activities............................. (116,428) (101,501) 479,410
Net increase (decrease) in cash and cash equivalents ..................................... (34,966) 25,711 251,554
Cash and cash equivalents at beginning of year............................................... 217,531 182,565 208,276
Cash and cash equivalents at end of year......................................................... $ 182,565 $ 208,276 $ 459,830
See notes to consolidated financial statements.