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Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Cash flows from operating activities    
Net income $ 82,961 $ 35,245
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 4,939 4,779
Stock-based compensation 16,439 13,360
Deferred income taxes 2,521 (1,597)
Amortization of investment premiums 330 0
Changes in operating assets and liabilities:    
Accounts receivable, net 44,057 9,144
Inventories (50,296) 8,099
Prepaid expenses and other current assets (29,051) 8,878
Other assets 69 533
Accounts payable (18,648) (16,123)
Accrued liabilities (15,143) (14,868)
Deferred revenue 124,236 22,412
Income taxes payable 2,923 6,802
Other liabilities (2,475) 464
Net cash provided by operating activities [1] 162,862 77,128
Cash flows from investing activities    
Proceeds from marketable securities 64,488 0
Purchases of marketable securities (61,511) (51,638)
Purchases of property and equipment (4,645) (8,632)
Change in restricted cash (1,252) 0
Net cash used in investing activities (2,920) (60,270)
Cash flows from financing activities    
Principal payments of lease financing obligations (383) (314)
Proceeds from issuance of common stock under equity plans 19,481 6,750
Minimum tax withholding paid on behalf of employees for net share settlement (580) 0
Net cash provided by financing activities [1] 18,518 6,436
Effect of exchange rate changes 184 43
NET INCREASE IN CASH AND CASH EQUIVALENTS 178,644 23,337
CASH AND CASH EQUIVALENTS—Beginning of period 567,923 687,326
CASH AND CASH EQUIVALENTS—End of period 746,567 710,663
Supplemental disclosures of non-cash investing activities:    
Property and equipment included in accounts payable and accrued liabilities $ 971 $ 958
[1] During the three months ended March 31, 2017, we adopted Accounting Standards Update 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." Refer to Note 1 Recently Adopted Accounting Pronouncements for further details. This adoption resulted in a $6.0 million increase in net cash provided by operating activities and a corresponding $6.0 million decrease in net cash provided by financing activities for the three months ended March 31, 2016.