EX-99.1 2 exhibit991-q314earningsrel.htm EXHIBIT 99.1 PRESS RELEASE AND FINANCIALS Exhibit 99.1 - Q3'14 Earnings Release


EXHIBIT 99.1

    
NEWS RELEASE
SanDisk Corporation
951 SanDisk Drive
Milpitas, CA 95035-7932
Phone: 408-801-1000

SANDISK ANNOUNCES THIRD QUARTER 2014 RESULTS

Delivers Record Quarterly Revenue


MILPITAS, Calif., Oct 16, 2014 - SanDisk Corporation (NASDAQ: SNDK), a global leader in flash storage solutions, today announced results for the third quarter ended September 28, 2014. Third quarter revenue of $1.75 billion increased 7 percent on a year-over-year basis and increased 7 percent sequentially.

On a GAAP(1) basis, third quarter net income was $263 million, or $1.09 per share, compared to net income of $277 million, or $1.18 per share, in the third quarter of fiscal 2013 and $274 million, or $1.14 per share, in the second quarter of fiscal 2014.

On a non-GAAP(2)(3) basis, third quarter net income was $336 million, or $1.45 per share, compared to net income of $371 million, or $1.59 per share, in the third quarter of fiscal 2013 and net income of $329 million, or $1.41 per share, in the second quarter of fiscal 2014. For reconciliation of non-GAAP to GAAP results, see accompanying financial tables and footnotes.

“Third quarter results reflect the strength of our diversified product portfolio, broad customer engagements and solid execution,” said Sanjay Mehrotra, president and chief executive officer. “Demand for NAND flash continues to be strong across mobile, client and enterprise, where SanDisk’s innovations are creating significant opportunities.  As we focus on closing a record 2014, we also look forward to building upon our success in 2015.”
 
KEY FINANCIAL METRICS
Metrics
GAAP (1)
 
Non-GAAP (2)
(in millions, except percentages and per share amounts)
Q3’14
Q3'13
Q2’14
 
Q3’14
Q3'13
Q2’14
Revenue
$1,746
$1,625
$1,634
 
$1,746
$1,625
$1,634
Gross profit
$817
$802
$760
 
$855
$815
$783
percent of revenue
47
%
49
%
46
%
 
49
%
50
%
48
%
Operating income
$388
$408
$417
 
$481
$533
$472
percent of revenue
22
%
25
%
25
%
 
28
%
33
%
29
%
EPS (3)
$1.09
$1.18
$1.14
 
$1.45
$1.59
$1.41







OTHER HIGHLIGHTS
•
SanDisk completed the acquisition of Fusion-io, a leading developer of flash-based PCIe hardware and software solutions, for approximately $1.1 billion, net of cash assumed.
•
SanDisk commemorated the opening of Phase 2 of Fab 5 and began construction of the New Fab 2 in Yokkaichi, Japan.
•
SanDisk announced design wins for its high-performance, low-latency ULLtraDIMM™ SSDs with Super Micro Computer and Huawei.
•
SanDisk introduced innovative products in several product categories:
◦
In enterprise solutions, Dell launched SanDisk DAS Cache server-side caching software, allowing customers to benefit from SSDs, while maintaining data on direct-attached, disk-based storage.
◦
In client solutions, SanDisk launched the SanDisk Ultra® II SSD, utilizing X3 technology to deliver a high-performance, cost-effective storage upgrade for PCs.
◦
SanDisk launched the industry’s highest-capacity SD™ card with the 512GB SanDisk Extreme PRO® SDXC™ UHS-I card and the industry’s fastest microSD™ UHS-I card with the 64GB SanDisk Extreme PRO microSDXC™ UHS-I card, both enabling 4K Ultra HD video capture.
•
SanDisk announced today a fourth quarter 2014 dividend of $0.30 per share of common stock, payable on November 24, 2014 to shareholders of record as of the close of business on November 3, 2014.

CONFERENCE CALL
SanDisk’s third quarter of fiscal 2014 conference call is scheduled for 2:00 P.M., Pacific Daylight Time, Thursday, October 16, 2014. The conference call will be webcast and can be accessed live, and throughout the quarter, at SanDisk’s website at www.sandisk.com/IR. To participate in the call via telephone, the dial-in number is 719-325-4758 and the dial-in password is 9292176. A copy of this press release will be furnished to the Securities and Exchange Commission on a current report on Form 8-K and will be posted to SanDisk's website prior to the conference call.

ABOUT SANDISK
SanDisk Corporation (NASDAQ: SNDK), a Fortune 500 and S&P 500 company, is a global leader in flash storage solutions. For more than 25 years, SanDisk has expanded the possibilities of storage, providing trusted and innovative products that have transformed the electronics industry. Today, SanDisk’s quality, state-of-the-art solutions are at the heart of many of the world's largest data centers, and embedded in advanced smartphones, tablets and PCs. SanDisk’s consumer products are available at hundreds of thousands of retail stores worldwide. For more information, visit www.sandisk.com.


© 2014 SanDisk Corporation. All rights reserved. SanDisk, SanDisk Ultra and SanDisk Extreme PRO are trademarks of SanDisk Corporation, registered in the United States and other countries. ULLtraDIMM is a trademark of SanDisk Enterprise IP LLC. The SD, microSD, microSDXC and SDXC marks are trademarks of SD-3C, LLC.

This news release contains certain forward-looking statements, including those regarding our business prospects and opportunities, market growth, demand for our products, our innovations, and our performance for the remainder of 2014 and in 2015, that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate.

Risks that may cause these forward-looking statements to be inaccurate include, among others:

•
competitive pricing pressures or product mix changes, resulting in lower average selling prices, lower revenues and reduced gross margins;
•
insufficient or mismatched captive memory output, capacity, or inventory, resulting in lost revenue and growth opportunities;
•
weakness in demand in one or more of our product categories, such as embedded products or SSDs, or adverse changes in our product or customer mix;
•
potential delays in product development or lack of customer acceptance and qualification of our solutions, including on new technology nodes, particularly OEM products such as our embedded flash storage and SSD solutions;
•
excess or mismatched captive memory output or capacity, resulting in lower average selling prices, financial charges and impairments, lower gross margin or other consequences;
•
inability to develop, or unexpected difficulties or delays in developing or ramping with acceptable yields, new technologies or the failure of new technologies to effectively compete with those of our competitors;
•
our 1Z nanometer process technology, our X2 and X3 NAND memory architectures or our solutions utilizing these new technologies may not be available when we expect; and
•
the other risks detailed from time-to-time under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission filings and reports, including, but not limited to, our Quarterly Report on Form 10-Q for the fiscal quarter ended June 29, 2014.





(1)
GAAP represents U.S. Generally Accepted Accounting Principles.
(2)
Non-GAAP represents GAAP excluding the impact of share-based compensation, inventory step-up expense, amortization of acquisition-related intangible assets, non-cash economic interest expense associated with our convertible debt and related tax adjustments.
(3)
Non-GAAP shares include the impact of offsetting shares from the call options related to the 1.5% Sr. Convertible Notes due 2017 and 0.5% Sr. Convertible Notes due 2020, and the impact of share-based compensation.


Investor Contacts:
Jay Iyer
408-801-2067
jay.iyer@sandisk.com

Brendan Lahiff
408-801-1732
brendan.lahiff@sandisk.com

Media Contact:
Michael Diamond
408-801-1108
michael.diamond@sandisk.com

# # # # #








SanDisk Corporation
Preliminary Condensed Consolidated Statements of Operations
(in thousands, except per share amounts, unaudited)

 
Three months ended
 
Nine months ended
 
September 28, 2014
 
September 29, 2013
 
September 28, 2014
 
September 29, 2013
Revenue
$
1,746,491

 
$
1,625,153

 
$
4,892,447

 
$
4,442,145

 
 
 
 
 
 
 
 
Cost of revenue
900,830

 
812,904

 
2,496,509

 
2,401,901

Amortization of acquisition-related intangible assets
28,523

 
10,256

 
67,860

 
29,916

Total cost of revenue
929,353

 
823,160

 
2,564,369

 
2,431,817

Gross profit
817,138

 
801,993

 
2,328,078

 
2,010,328

Operating expenses:
 
 
 
 
 
 
 
Research and development
223,309

 
183,821

 
626,168

 
526,987

Sales and marketing
111,392

 
72,237

 
271,762

 
194,965

General and administrative
60,044

 
49,171

 
162,798

 
141,152

Amortization of acquisition-related intangible assets
9,615

 
5,088

 
12,742

 
9,199

Impairment of acquisition-related intangible assets
—

 
83,228

 
—

 
83,228

Restructuring and other
24,984

 
—

 
24,984

 
—

Total operating expenses
429,344

 
393,545

 
1,098,454

 
955,531

Operating income
387,794

 
408,448

 
1,229,624

 
1,054,797

Other income (expense), net
(14,875
)
 
(4,892
)
 
(44,089
)
 
(33,890
)
Income before income taxes
372,919

 
403,556

 
1,185,535

 
1,020,907

Provision for income taxes
110,258

 
126,697

 
379,980

 
316,030

Net income
$
262,661

 
$
276,859

 
$
805,555

 
$
704,877

Net income per share:
 
 
 
 
 
 
 
Basic
$
1.18

 
$
1.20

 
$
3.59

 
$
2.96

Diluted
$
1.09

 
$
1.18

 
$
3.37

 
$
2.91

Shares used in computing net income per share:
 
 
 
 
 
 
 
Basic
222,201

 
230,253

 
224,530

 
238,097

Diluted
240,685

 
235,032

 
239,275

 
242,270







SanDisk Corporation
Reconciliation of Preliminary GAAP to Non-GAAP Operating Results (1)
(in thousands, except per share data, unaudited)

 
Three months ended
 
Nine months ended
 
September 28, 2014
 
September 29, 2013
 
September 28, 2014
 
September 29, 2013
SUMMARY RECONCILIATION OF NET INCOME:
 
 
 
 
 
 
 
GAAP NET INCOME
$
262,661

 
$
276,859

 
$
805,555

 
$
704,877

Share-based compensation (a)
50,195

 
25,930

 
114,674

 
72,325

Amortization of acquisition-related intangible assets (b)
38,138

 
15,344

 
80,602

 
39,115

Inventory step-up expense (c)
4,903

 
—

 
4,903

 
—

Impairment of acquisition-related intangible assets (d)
—

 
83,228

 
—

 
83,228

Convertible debt interest (e)
21,493

 
9,859

 
63,582

 
50,202

Income tax adjustments (f)
(41,888
)
 
(40,473
)
 
(75,085
)
 
(73,131
)
NON-GAAP NET INCOME
$
335,502

 
$
370,747

 
$
994,231

 
$
876,616

 
 
 
 
 
 
 
 
GAAP COST OF REVENUE
$
929,353

 
$
823,160

 
$
2,564,369

 
$
2,431,817

Share-based compensation (a)
(4,001
)
 
(2,716
)
 
(10,118
)
 
(6,880
)
Amortization of acquisition-related intangible assets (b)
(28,523
)
 
(10,256
)
 
(67,860
)
 
(29,916
)
Inventory step-up expense (c)
(4,903
)
 
—

 
(4,903
)
 
—

NON-GAAP COST OF REVENUE
$
891,926

 
$
810,188

 
$
2,481,488

 
$
2,395,021

 
 
 
 
 
 
 
 
GAAP GROSS PROFIT
$
817,138

 
$
801,993

 
$
2,328,078

 
$
2,010,328

Share-based compensation (a)
4,001

 
2,716

 
10,118

 
6,880

Amortization of acquisition-related intangible assets (b)
28,523

 
10,256

 
67,860

 
29,916

Inventory step-up expense (c)
4,903

 
—

 
4,903

 
—

NON-GAAP GROSS PROFIT
$
854,565

 
$
814,965

 
$
2,410,959

 
$
2,047,124

 
 
 
 
 
 
 
 
GAAP RESEARCH AND DEVELOPMENT EXPENSES
$
223,309

 
$
183,821

 
$
626,168

 
$
526,987

Share-based compensation (a)
(21,469
)
 
(13,142
)
 
(54,644
)
 
(37,486
)
NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES
$
201,840

 
$
170,679

 
$
571,524

 
$
489,501

 
 
 
 
 
 
 
 
GAAP SALES AND MARKETING EXPENSES
$
111,392

 
$
72,237

 
$
271,762

 
$
194,965

Share-based compensation (a)
(13,800
)
 
(5,241
)
 
(27,261
)
 
(13,813
)
NON-GAAP SALES AND MARKETING EXPENSES
$
97,592

 
$
66,996

 
$
244,501

 
$
181,152

 
 
 
 
 
 
 
 
GAAP GENERAL AND ADMINISTRATIVE EXPENSES
$
60,044

 
$
49,171

 
$
162,798

 
$
141,152

Share-based compensation (a)
(10,925
)
 
(4,831
)
 
(22,651
)
 
(14,146
)
NON-GAAP GENERAL AND ADMINISTRATIVE EXPENSES
$
49,119

 
$
44,340

 
$
140,147

 
$
127,006

 
 
 
 
 
 
 


GAAP TOTAL OPERATING EXPENSES
$
429,344

 
$
393,545

 
$
1,098,454

 
$
955,531

Share-based compensation (a)
(46,194
)
 
(23,214
)
 
(104,556
)
 
(65,445
)
Amortization of acquisition-related intangible assets (b)
(9,615
)
 
(5,088
)
 
(12,742
)
 
(9,199
)
Impairment of acquisition-related intangible assets (d)
—

 
(83,228
)
 
—

 
(83,228
)
NON-GAAP TOTAL OPERATING EXPENSES
$
373,535

 
$
282,015

 
$
981,156

 
$
797,659

 
 
 
 
 
 
 
 
GAAP OPERATING INCOME
$
387,794

 
$
408,448

 
$
1,229,624

 
$
1,054,797

Cost of revenue adjustments (a) (b) (c)
37,427

 
12,972

 
82,881

 
36,796

Operating expense adjustments (a) (b) (d)
55,809

 
111,530

 
117,298

 
157,872

NON-GAAP OPERATING INCOME
$
481,030

 
$
532,950

 
$
1,429,803

 
$
1,249,465

 
 
 
 
 
 
 
 
GAAP OTHER INCOME (EXPENSE), NET
$
(14,875
)
 
$
(4,892
)
 
$
(44,089
)
 
$
(33,890
)
Convertible debt interest (e)
21,493

 
9,859

 
63,582

 
50,202

NON-GAAP OTHER INCOME (EXPENSE), NET
$
6,618

 
$
4,967

 
$
19,493

 
$
16,312

 
 
 
 
 
 
 
 
GAAP NET INCOME
$
262,661

 
$
276,859

 
$
805,555

 
$
704,877

Cost of revenue adjustments (a) (b) (c)
37,427

 
12,972

 
82,881

 
36,796

Operating expense adjustments (a) (b) (d)
55,809

 
111,530

 
117,298

 
157,872

Other income (expense) adjustments (e)
21,493

 
9,859

 
63,582

 
50,202

Income tax adjustments (f)
(41,888
)
 
(40,473
)
 
(75,085
)
 
(73,131
)
NON-GAAP NET INCOME
$
335,502

 
$
370,747

 
$
994,231

 
$
876,616

 
 
 
 
 
 
 
 
Diluted net income per share:
 
 
 
 
 
 
 
GAAP
$
1.09

 
$
1.18

 
$
3.37

 
$
2.91

Non-GAAP
$
1.45

 
$
1.59

 
$
4.29

 
$
3.63

Shares used in computing diluted net income per share:
 
 
 
 
 
 
 
GAAP
240,685

 
235,032

 
239,275

 
242,270

Non-GAAP (g)
230,863

 
233,256

 
231,567

 
241,408






SanDisk Corporation
Reconciliation of Preliminary GAAP to Non-GAAP Operating Results (1)
(in thousands, unaudited)
 
Three months ended
 
Nine months ended
 
September 28, 2014
 
September 29, 2013
 
September 28, 2014
 
September 29, 2013
SUMMARY RECONCILIATION OF DILUTED SHARES
 
 
 
 
 
 
 
GAAP
240,685

 
235,032

 
239,275

 
242,270

Adjustments for share-based compensation
333

 
363

 
253

 
248

Offsetting shares from call option
(10,155
)
 
(2,139
)
 
(7,961
)
 
(1,110
)
Non-GAAP (g)
230,863

 
233,256

 
231,567

 
241,408

 
 
(1)
To supplement our condensed consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP), we use non-GAAP measures of operating results, net income and net income per share, which are adjusted from results based on GAAP to exclude certain expenses, gains and losses. These non-GAAP financial measures are provided to enhance the user's overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors as these non-GAAP results exclude certain expenses, gains and losses that we believe are not indicative of our core operating results and because they are consistent with the financial models and estimates published by many analysts who follow us. For example, because the non-GAAP results exclude the expenses we recorded for share-based compensation, inventory step-up expense, amortization of acquisition-related intangible assets related to acquisitions of Pliant Technology, Inc. in May 2011, FlashSoft Corporation in February 2012, Schooner Information Technology, Inc. in June 2012, SMART Storage Systems in August 2013 and Fusion-io, Inc. in July 2014, non-cash economic interest expense associated with the convertible debt and related tax adjustments, we believe the inclusion of non-GAAP financial measures provides consistency in our financial reporting. In addition, our non-GAAP diluted shares include the impact of the call options which, when exercised, will offset the issuance of dilutive shares from the 1.5% Sr. Convertible Notes due 2017 and 0.5% Sr. Convertible Notes due 2020, while the GAAP diluted shares exclude the anti-dilutive impact of these call options. These non-GAAP results are some of the primary indicators management uses for assessing our performance, allocating resources, and planning and forecasting future periods. Further, management uses non-GAAP information that excludes certain non-cash charges, such as amortization of acquisition-related intangible assets, inventory step-up expense, share-based compensation, non-cash economic interest expense associated with the convertible debt and related tax adjustments, as these non-GAAP charges do not reflect the cash operating results of the business or the ongoing results. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. These non-GAAP measures may be different than the non-GAAP measures used by other companies.
(a)
Share-based compensation expense.
(b)
Amortization of acquisition-related intangible assets, primarily developed technology, customer relationships, and trademarks and trade names related to the acquisitions of Pliant Technology, Inc. (May 2011), FlashSoft Corporation (February 2012), Schooner Information Technology, Inc. (June 2012), SMART Storage Systems (August 2013) and Fusion-io, Inc. (July 2014).
(c)
Inventory step-up expense related to acquisition of Fusion-io, Inc. (July 2014).
(d)
Impairment of acquisition-related intangible assets and in-process research and development related to the Schooner Information Technology, Inc. (June 2012) and Pliant Technology, Inc. (May 2011) acquisitions.
(e)
Incremental interest expense related to the non-cash economic interest expense associated with the 1% Sr. Convertible Notes due 2013, 1.5% Sr. Convertible Notes due 2017, and 0.5% Sr. Convertible Notes due 2020.
(f)
Income taxes associated with certain non-GAAP to GAAP adjustments, and the effects of one-time income tax adjustments recorded in a specific quarter for GAAP purposes are reflected on a forecast basis in our non-GAAP tax rate.
(g)
Non-GAAP diluted shares include the impact of offsetting shares from the call options related to the 1.5% Sr. Convertible Notes due 2017 and 0.5% Sr. Convertible Notes due 2020, and the impact of share-based compensation.





SanDisk Corporation
Preliminary Condensed Consolidated Balance Sheets
(in thousands, unaudited)
 
September 28, 2014
 
December 29, 2013
ASSETS
Current assets:
 
 
 
Cash and cash equivalents
$
930,835

 
$
986,246

Short-term marketable securities
1,370,257

 
1,919,611

Accounts receivable, net
870,552

 
682,809

Inventory
782,128

 
756,975

Deferred taxes
169,548

 
138,192

Other current assets
230,814

 
166,885

Total current assets
4,354,134

 
4,650,718

Long-term marketable securities
2,843,933

 
3,179,471

Property and equipment, net
692,362

 
655,794

Notes receivable and investments in Flash Ventures
1,119,669

 
1,134,620

Deferred taxes
147,690

 
134,669

Goodwill
860,620

 
318,111

Intangible assets, net
594,239

 
247,904

Other non-current assets
95,614

 
167,430

Total assets
$
10,708,261

 
$
10,488,717

 
 
 
 
LIABILITIES, CONVERTIBLE SHORT-TERM DEBT CONVERSION OBLIGATION AND EQUITY
Current liabilities:
 
 
 
Accounts payable trade
$
412,328

 
$
282,582

Accounts payable to related parties
134,817

 
146,964

Convertible short-term debt (1)
861,628

 
—

Other current accrued liabilities
480,188

 
509,732

Deferred income on shipments to distributors and retailers and deferred revenue
325,985

 
291,302

Total current liabilities
2,214,946

 
1,230,580

Convertible long-term debt
1,188,356

 
1,985,363

Non-current liabilities
242,491

 
307,083

Total liabilities
3,645,793

 
3,523,026

 
 
 
 
Convertible short-term debt conversion obligation (1)
138,372

 
—

 
 
 
 
Stockholders’ equity:
 
 
 
Common stock
5,243,119

 
5,040,242

Retained earnings
1,780,420

 
2,004,089

Accumulated other comprehensive loss
(97,205
)
 
(76,459
)
Total stockholders’ equity
6,926,334

 
6,967,872

Non-controlling interests
(2,238
)
 
(2,181
)
Total equity
6,924,096

 
6,965,691

Total liabilities, convertible short-term debt conversion obligation and equity
$
10,708,261

 
$
10,488,717

 
 
(1) 
The 1.5% Sr. Convertible Notes due 2017 are convertible through December 31, 2014 as a result of the Company’s common stock price exceeding the trigger price set forth in the indenture. Accordingly, the carrying value of the notes is reported as short-term debt as of September 28, 2014 and will remain so while the notes are convertible. The convertible short-term debt conversion obligation represents the difference between the carrying value of the convertible debt and the principal amount due in cash upon conversion.




SanDisk Corporation
Preliminary Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
 
Three months ended
 
Nine months ended
 
September 28, 2014
 
September 29, 2013
 
September 28, 2014
 
September 29, 2013
Cash flows from operating activities:
 
 
 
 
 
 
 
Net income
$
262,661

 
$
276,859

 
$
805,555

 
$
704,877

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
 
Deferred taxes
(808
)
 
(12,240
)
 
6,784

 
53,254

Depreciation
66,198

 
57,650

 
187,651

 
165,862

Amortization
85,393

 
50,710

 
230,987

 
171,956

Provision for doubtful accounts
836

 
(644
)
 
677

 
498

Share-based compensation expense
50,195

 
25,930

 
114,674

 
72,325

Excess tax benefit from share-based plans
(10,764
)
 
(4,238
)
 
(38,776
)
 
(19,899
)
Impairment and other
520

 
81,774

 
520

 
76,258

Other non-operating
(365
)
 
1,134

 
343

 
774

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
Accounts receivable, net
(68,999
)
 
(40,539
)
 
(145,997
)
 
(51,749
)
Inventory
46,111

 
(23,411
)
 
52,556

 
4,096

Other assets
10,900

 
(44,666
)
 
10,381

 
(23,093
)
Accounts payable trade
48,869

 
66,824

 
62,118

 
82,194

Accounts payable to related parties
(16,427
)
 
(4,188
)
 
(12,147
)
 
(50,975
)
Other liabilities
113,376

 
(48,542
)
 
(64,691
)
 
60,479

Total adjustments
325,035

 
105,554

 
405,080

 
541,980

Net cash provided by operating activities
587,696

 
382,413

 
1,210,635

 
1,246,857

Cash flows from investing activities:
 
 
 
 
 
 
 
Purchases of short and long-term marketable securities
(597,716
)
 
(507,392
)
 
(3,376,250
)
 
(2,504,479
)
Proceeds from sales of short and long-term marketable securities
1,527,752

 
1,277,691

 
3,621,418

 
3,125,350

Proceeds from maturities of short and long-term marketable securities
184,395

 
127,695

 
563,890

 
634,600

Acquisition of property and equipment, net
(86,975
)
 
(50,866
)
 
(165,641
)
 
(170,715
)
Investment in Flash Ventures
—

 
—

 
(24,296
)
 
—

Notes receivable issuances to Flash Ventures
(43,733
)
 
—

 
(131,692
)
 
—

Notes receivable proceeds from Flash Ventures
14,451

 
—

 
126,755

 
73,388

Purchased technology and other assets
(3,036
)
 
(5,353
)
 
(4,589
)
 
(9,261
)
Acquisitions, net of cash acquired
(1,066,166
)
 
(304,178
)
 
(1,063,798
)
 
(304,320
)
Net cash provided by (used in) investing activities
(71,028
)
 
537,597

 
(454,203
)
 
844,563

Cash flows from financing activities:
 
 
 
 
 
 
 
Repayment of debt financing
—

 
—

 
—

 
(928,061
)
Distribution to non-controlling interests
—

 
—

 
—

 
(87
)
Proceeds from employee stock programs
55,480

 
43,036

 
159,044

 
206,052

Excess tax benefit from share-based plans
10,764

 
4,238

 
38,776

 
19,899

Dividends paid
(67,045
)
 
(50,638
)
 
(169,443
)
 
(50,638
)
Share repurchases (1)
(466,622
)
 
(1,069,545
)
 
(838,070
)
 
(1,439,539
)
Net cash used in financing activities
(467,423
)
 
(1,072,909
)
 
(809,693
)
 
(2,192,374
)
Effect of changes in foreign currency exchange rates on cash
(3,525
)
 
1,533

 
(2,150
)
 
8,249

Net increase (decrease) in cash and cash equivalents
45,720

 
(151,366
)
 
(55,411
)
 
(92,705
)
Cash and cash equivalents at beginning of period
885,115

 
1,054,131

 
986,246

 
995,470

Cash and cash equivalents at end of period
$
930,835

 
$
902,765

 
$
930,835

 
$
902,765

 
 
(1) 
Share repurchases include cash used to repurchase common stock and cash used to settle employee tax withholding obligations due upon the vesting of restricted stock units.