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Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net income $ 423,201 $ 184,189 $ 121,102
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 20,640 19,749 13,671
Stock-based compensation 75,427 59,032 45,303
Deferred income taxes 8,426 (21,720) (24,409)
Amortization of investment premiums 1,452 1,493 1,471
Changes in operating assets and liabilities:      
Accounts receivable, net 5,773 (108,856) (47,281)
Inventories (69,708) (144,361) (14,123)
Prepaid expenses and other current assets (11,645) (115,074) (7,827)
Other assets 907 2,866 (3,087)
Accounts payable (30,104) 38,678 9,037
Accrued liabilities 43,535 30,629 20,398
Deferred revenue 142,327 176,126 90,340
Income taxes payable 19,921 42,650 32,018
Other liabilities 1,475 8,894 1,171
Net cash provided by operating activities [1] 631,627 174,295 237,784
CASH FLOWS FROM INVESTING ACTIVITIES:      
Proceeds from maturities of marketable securities 206,332 137,855 208,200
Purchases of marketable securities (585,373) (439,711) 0
Purchases of property and equipment (15,279) (21,419) (19,989)
Proceeds from repayment of notes receivable 3,000 0 0
Investment in privately-held companies 0 (2,500) 0
Change in restricted cash (1,260) (204) (4,041)
Net cash provided by (used in) investing activities (392,580) (325,979) 184,170
CASH FLOWS FROM FINANCING ACTIVITIES:      
Principal payments of lease financing obligations (1,617) (1,336) (1,086)
Proceeds from issuance of common stock under equity plans 57,111 35,181 27,201
Minimum tax withholding paid on behalf of employees for net share settlement (4,025) (1,100) 0
Proceeds from initial public offering, net of issuance cost 0 0 (261)
Net cash provided by financing activities [1] 51,469 32,745 25,854
Effect of exchange rate changes 753 (464) (513)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 291,269 (119,403) 447,295
CASH AND CASH EQUIVALENTS—Beginning of year 567,923 687,326 240,031
CASH AND CASH EQUIVALENTS—End of year 859,192 567,923 687,326
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:      
Cash paid for income taxes, net of refunds 44,216 39,638 6,591
Cash paid for interest — lease financing obligation 2,814 2,916 2,999
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION:      
Property and equipment included in accounts payable and accrued liabilities 3,811 869 3,957
Vesting of early exercised stock options and restricted stock awards $ 564 $ 1,082 $ 2,226
[1] During our first fiscal quarter of 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 an increase in net cash provided by operating activities and a corresponding decrease in net cash provided by financing activities of $42.9 million and $37.3 million for the years ended December 31, 2016 and 2015, respectively.