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Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities    
Net income $ 319,368 $ 125,406
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 15,355 14,807
Stock-based compensation 54,991 42,708
Deferred income taxes (22,743) (13,720)
Amortization of investment premiums 1,106 994
Changes in operating assets and liabilities:    
Accounts receivable, net 40,508 (65,980)
Inventories (96,667) (69,998)
Prepaid expenses and other current assets (20,973) (98,050)
Other assets (1,560) 3,208
Accounts payable (46,075) 35,510
Accrued liabilities 4,175 15,913
Deferred revenue 192,210 88,027
Income taxes payable 7,421 27,275
Other liabilities 847 2,628
Net cash provided by operating activities [1] 447,963 108,728
Cash flows from investing activities    
Proceeds from marketable securities 135,483 41,917
Purchases of marketable securities (325,414) (342,484)
Purchases of property and equipment (12,159) (16,484)
Proceeds from repayment of notes receivable 3,000 0
Investment in privately-held companies 0 (2,500)
Change in restricted cash (1,257) 0
Net cash used in investing activities (200,347) (319,551)
Cash flows from financing activities    
Principal payments of lease financing obligations (1,170) (960)
Proceeds from issuance of common stock under equity plans 41,870 25,882
Minimum tax withholding paid on behalf of employees for net share settlement (2,457) (811)
Net cash provided by financing activities [1] 38,243 24,111
Effect of exchange rate changes 697 (133)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 286,556 (186,845)
CASH AND CASH EQUIVALENTS—Beginning of period 567,923 687,326
CASH AND CASH EQUIVALENTS—End of period 854,479 500,481
Supplemental disclosures of non-cash investing activities:    
Property and equipment included in accounts payable and accrued liabilities $ 468 $ 1,313
[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 a $30.0 million increase in net cash provided by operating activities and a corresponding $30.0 million decrease in net cash provided by financing activities for the nine months ended September 30, 2016.