8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 26, 2011

LSI CORPORATION

(Exact name of registrant as specified in its charter)

DELAWARE	1-10317	94-2712976
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1621 Barber Lane

Milpitas, California 95035

(Address of principal executive offices, including zip code)

(408) 433-8000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

Item  2.02 Results of Operation and Financial Condition.	3
Item 9.01 Financial Statements and Exhibits.	6
SIGNATURES	7
EXHIBIT INDEX	8
EXHIBIT 99.1

2

Item 2.02 Results of Operation and Financial Condition.

On October 26, 2011, LSI Corporation issued a news release regarding its financial results for the quarter ended October 2, 2011. A copy of the news release is furnished as Exhibit 99.1 to this Form 8-K and is incorporated by reference herein.

The news release contains non-GAAP financial information. Management believes that the presentation of non-GAAP net income (loss), non-GAAP gross margin, non-GAAP operating expenses, non-GAAP taxes, and non-GAAP net income (loss) per basic and diluted share provides important supplemental information to management and investors about financial and business trends relating to the company’s results of operations. Management believes that the use of these non-GAAP financial measures also provides consistency and comparability with our past financial reports.

Management has historically used these non-GAAP measures when evaluating operating performance because we believe that the inclusion or exclusion of the items described below provides an additional measure of our core operating results and facilitates comparisons of our core operating performance against prior periods and our business model objectives. We have chosen to provide this information to investors to enable them to perform additional analyses of past, present and future operating performance and as a supplemental means to evaluate our ongoing core operations. Externally, we believe that these non-GAAP measures continue to be useful to investors in their assessment of our operating performance and their valuation of the company.

Internally, these non-GAAP measures are significant measures used by management for purposes of:

• evaluating the core operating performance of the company;

• establishing internal budgets;

• calculating return on investment for development programs and growth initiatives;

• comparing performance with internal forecasts and targeted business models;

• strategic planning;

• evaluating and valuing potential acquisition candidates and how their operations compare to the company’s operations; and

• benchmarking performance externally against our competitors.

How we calculate our non-GAAP financial measures

Non-GAAP net income (loss), non-GAAP gross margin, non-GAAP operating expenses, non-GAAP taxes and non-GAAP net income (loss) per basic and diluted share are important to the company for the reasons noted above and exclude the following items:

• Stock-based compensation. Stock-based compensation relates primarily to LSI stock awards such as stock options and restricted stock units. Stock-based compensation is a non-cash expense that varies in amount from period to period and is dependent on market forces that are difficult to predict. As a result of this unpredictability, management excludes this item from its internal operating forecasts and models. Management believes that non-GAAP measures adjusted for stock-based compensation provide investors with a basis to measure the company’s core performance against the performance of other companies without the variability created by stock-based compensation.

• Purchase accounting effect on inventory. This is an acquisition-related charge. It results from marking to fair value an acquired company’s inventory at the time of acquisition. This charge is not factored into management’s evaluation of potential acquisitions or our performance after completion of acquisitions, because it is not related to our core operating performance, and the frequency and amount of this type of charge can vary significantly based on the size and timing of our acquisitions. Excluding this data provides investors with a basis to compare the company against the performance of other companies without this variability.

3

• Amortization of acquisition-related intangibles. This relates to purchased technology in acquisitions such as existing technology, patents and trademarks. This charge is not factored into management’s evaluation of potential acquisitions or our performance after completion of acquisitions, because it is not related to our core operating performance, and the frequency and amount of this type of charge can vary significantly based on the size and timing of our acquisitions and the maturities of the businesses being acquired. Excluding this data provides investors with a basis to compare the company against the performance of other companies without this variability.

• Restructuring of operations and other items, net. This represents charges/losses and gains that are not directly related to the company’s ongoing or core business results. Management regularly excludes such items from internal operating forecasts and models because they are not considered a core operating activity for the company and because the frequency and variability in the nature of the charges can vary significantly from period to period. Excluding this data provides investors with a basis to compare the company against the performance of other companies without this variability.

• Goodwill and other intangible asset impairment charges. This item reflects the write down of goodwill and other intangible assets to their fair values. Because of the infrequent nature of this charge, management does not include this type of item in internal operating forecasts and models. Excluding this data provides investors with a basis to compare the company’s core operating results in different periods without this variability.

• Other charges and gains. Other charges and gains consist of gains or losses on investments and certain non-operating gains and losses that occur on an infrequent basis and vary greatly in amount. We do not regularly trade public equity securities nor do we typically use these securities to fund our ongoing operations. Management excludes these items because they do not affect our core operations. Excluding this data provides investors with a basis to compare the company against the performance of other companies without this variability.

• Non-GAAP income tax expense/benefit. This item represents the additional amount of tax expense or benefit that the company would accrue if it used non-GAAP results instead of GAAP results in the calculation of its tax liability.

We use non-GAAP net income computed as described above as the numerator in the calculation of non-GAAP net income per basic and diluted share. We calculate the basic and diluted share amounts used in the denominator in accordance with GAAP rules, using non-GAAP net income rather than GAAP net income.

Limitations of relying on non-GAAP financial measures

Some of the limitations of relying on non-GAAP financial measures include:

• Stock-based compensation. LSI’s stock-based incentive plans are important components of our employee incentive compensation arrangements and are reflected in our GAAP results. Stock-based compensation should be considered for a complete view of the costs of our compensation arrangements.

• Purchase accounting effect on inventory. Acquisitions have been an important part of our business strategy and the corresponding acquisition-related charges reflect the costs of choosing acquisitions as a form of growth strategy.

• Amortization of acquisition-related intangibles. Acquisitions have been an important part of our business strategy and the corresponding acquisition-related charges reflect the costs of choosing acquisitions as a form of growth strategy.

• Restructuring of operations and other items, net. This item reflects charges for severance, exit costs associated with leased facilities, asset impairment charges and gains on sales of assets that are no longer strategic. While no longer strategic to the future of the company, such items reflect the costs of decisions made as part of running a business and are critical to a complete view of our historical results.

• Goodwill and other intangible asset impairment charges. This amount should be included for a complete view of our historical performance including the impact of declines of the value of our assets.

4

• Other charges and gains. These amounts should be included for a complete view of our historical performance even though they are not related to our core operations.

• Non-GAAP income tax expense/benefit. This item represents the additional amount of tax expense or benefit that the company would accrue if it used non-GAAP results instead of GAAP results in the calculation of its tax liability. The limitation in it is that it does not include the effect of all the items excluded from the non-GAAP financial statements.

All supplemental non-GAAP financial measures should be read in conjunction with the comparable information presented in accordance with generally accepted accounting principles in the United States of America.

5

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	News Release issued October 26, 2011.*

* Furnished, not filed.

6

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

LSI CORPORATION
By:	/s/ Bryon Look
	Bryon Look
	Executive Vice President, Chief Financial Officer and Chief Administrative Officer

Date: October 26, 2011

7

EXHIBIT INDEX

Exhibit No.	Description
99.1	News Release issued October 26, 2011.*

* Furnished, not filed.

8

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE OCTOBER 26, 2011

Investor Relations Contact:	Media Relations Contact:
Sujal Shah	Greg Thomas
610-712-5471	408-433-4236
sujal.shah@lsi.com	greg.thomas@lsi.com

cc11-51/C1126

LSI Reports Third Quarter 2011 Results

Revenues Up 9% Quarter over Quarter, 21% Year over Year

MILPITAS, Calif., October 26, 2011 – LSI Corporation (NYSE: LSI) today reported results for its third quarter ended October 2, 2011.

On May 6, 2011, LSI completed the sale of its external storage systems business to NetApp. The financial results of the external storage systems business have been classified as discontinued operations in LSI’s financial statements. Our ongoing business is referred to as “continuing operations.”

Third Quarter 2011 News Release Summary

• Third quarter 2011 revenues from continuing operations of $547 million

• Third quarter 2011 GAAP* income from continuing operations of 5 cents per diluted share

• Third quarter 2011 non-GAAP** income from continuing operations of 14 cents per diluted share

• Third quarter operating cash flows of $45 million

Fourth Quarter 2011 Business Outlook

Note: The business outlook reflects supply chain impacts and uncertainties due to recent flooding in Thailand.

• Projected revenues from continuing operations of $500 million to $550 million

• GAAP* (loss)/income from continuing operations in the range of ($0.04) to $0.08 per share

• Non-GAAP** income from continuing operations in the range of $0.06 to $0.14 per share

* Generally Accepted Accounting Principles.

** Excludes goodwill and other intangible asset impairment, stock-based compensation, amortization of acquisition-related intangibles, purchase accounting effect on inventory, restructuring of operations and other items, net, and gain/loss on sale/write-down of investments. It also excludes the income tax effect associated with the above-mentioned items. It also excludes, in the case of non-GAAP net income, gain from the sale of the external storage systems business.

“Despite macro uncertainties, LSI delivered a strong quarter and is positioned to outgrow the markets we serve in both the near and longer term, based on our share gains and new product cycles across our businesses,” said Abhi Talwalkar, LSI president and CEO. “Further extending LSI’s growth opportunities, the acquisition of SandForce, announced earlier today, will move us into a leadership position in the rapidly growing market for flash-based solutions.”

Third quarter 2011 revenues from continuing operations were $547 million, in line with guidance, compared to $453 million generated from continuing operations in the third quarter of 2010, and compared to $501 million generated from continuing operations in the second quarter of 2011.

Third quarter 2011 GAAP* income from continuing operations was $32 million or 5 cents per diluted share, compared to third quarter 2010 GAAP income from continuing operations of $13 million or 2 cents per diluted share. Second quarter 2011 GAAP income from continuing operations was $28 million or 5 cents per diluted share. Third quarter 2011 GAAP income from continuing operations included a net charge of $51 million from special items, consisting primarily of approximately $29 million of amortization of acquisition-related items, $12 million of stock-based compensation expense and $11 million of net restructuring and other items.

Third quarter 2011 GAAP net income was $29 million or 5 cents per diluted share, compared to third quarter 2010 GAAP net income of $23 million or 4 cents per diluted share. Second quarter 2011 GAAP net income was $294 million or 48 cents per diluted share. Second quarter 2011 GAAP net income included a gain of $260 million or 43 cents per diluted share related to the sale of the external storage systems business.

Third quarter 2011 non-GAAP** income from continuing operations was $83 million or 14 cents per diluted share, compared to third quarter 2010 non-GAAP income from continuing operations of $63 million or 10 cents per diluted share. Second quarter 2011 non-GAAP income from continuing operations was $60 million or 10 cents per diluted share.

Third quarter 2011 non-GAAP net income was $83 million or 14 cents per diluted share, compared to third quarter 2010 non-GAAP net income of $79 million or 13 cents per diluted share. Second quarter 2011 non-GAAP net income was $79 million or 13 cents per diluted share.

Cash and short-term investments totaled approximately $879 million at quarter end. The company completed third-quarter purchases of approximately 11 million shares of its common stock for approximately $75 million. On a year-to-date basis, the company has purchased approximately 68 million shares of its common stock for approximately $472 million under its $750 million share repurchase program.

Bryon Look, LSI CFO and chief administrative officer, said, “Execution this quarter remained strong with revenues growing 9 percent sequentially. Year over year, our revenues increased 21 percent and non-GAAP operating income was up 38 percent. Looking forward, we have included the expected business impacts associated with Thailand supply chain disruptions in our Q4 guidance.”

LSI 4Q2011 Business Outlook for Continuing Operations

	GAAP*	Special Items	Non-GAAP**
Revenue	$500 million to $550 million		$500 million to $550 million
Gross Margin	45% – 49%	$15 million to $25 million	50% – 52%
Operating Expenses	$218 million to $238 million	$20 million to $30 million	$198 million to $208 million
Net Other Income	$5 million		$5 million
Tax	Approximately $13 million		Approximately $13 million
(Loss)/Income From Continuing Operations Per Share	($0.04) to $0.08	($0.06) to ($0.10)	$0.06 to $0.14
Diluted Share Count	580 million		580 million

Capital spending is projected to be around $12 million in the fourth quarter and approximately $44 million in total for 2011.

Depreciation and software amortization is projected to be around $16 million in the fourth quarter and approximately $72 million in total for 2011.

LSI Conference Call Information

LSI will hold a conference call today at 2 p.m. PDT to discuss third quarter financial results and the fourth quarter 2011 business outlook. Internet users can access the conference call at http://www.lsi.com/webcast. Subsequent to the conference call, a replay will be available at the same web address.

Forward-Looking Statements: This news release contains forward-looking statements that are based on the current opinions and estimates of management. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause LSI’s actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to: our ability to obtain all necessary regulatory approvals for the acquisition, the successful consummation of the acquisition; our ability to successfully

integrate and manage the SandForce business and retain its key employees; our ability to achieve anticipated synergies and to develop integrated new products following our acquisition of SandForce; our ability to eliminate costs related to the external storage systems business that we sold to NetApp; our ability to repurchase our common stock at prices we believe to be advantageous; the impact of the recent flooding in Thailand; our reliance on major customers and suppliers; our ability to keep up with rapid technological change; our ability to compete successfully in competitive markets; fluctuations in the timing and volumes of customer demand; the unavailability of appropriate levels of manufacturing capacity; and general industry and macro-economic conditions. For additional information, see the documents filed by LSI with the Securities and Exchange Commission, and specifically the risk factors set forth in the company’s most recent reports on Form 10-K and 10-Q. LSI disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

About LSI

LSI Corporation (NYSE: LSI) designs semiconductors and software that accelerate storage and networking in datacenters and mobile networks. Our technology is the intelligence critical to enhanced application performance. The company applies its technology in solutions created in collaboration with our partners. More information is available at www.lsi.com.

# # #

Editor’s Notes:

1. All LSI news releases (financial, acquisitions, manufacturing, products, technology, etc.) are issued exclusively by PR Newswire and are immediately thereafter posted on the company’s external website, http://www.lsi.com.

2. LSI and the LSI & Design logo are trademarks or registered trademarks of LSI Corporation.

3. All other brand or product names may be trademarks or registered trademarks of their respective companies.

LSI CORPORATION

Condensed Consolidated Balance Sheets

(In millions)

(Unaudited)

	October 2, 2011			July 3, 2011			December 31, 2010
Assets
Current assets:
Cash and short-term investments	$	878.9		$	906.5		$	676.6
Accounts receivable, net		248.4			234.1			326.6
Inventories		210.4			193.8			186.8
Prepaid expenses, assets held for sale and other current assets		91.4			92.4			73.8
Total current assets		1,429.1			1,426.8			1,263.8
Property and equipment, net		176.7			178.5			223.2
Goodwill and identified intangible assets, net		534.8			563.4			749.8
Other assets		132.5			147.2			188.1
Total assets	$	2,273.1		$	2,315.9		$	2,424.9
Liabilities and Stockholders’ Equity
Current liabilities	$	464.4		$	447.7		$	484.6
Pension, tax and other liabilities		533.7			567.5			622.8
Total liabilities		998.1			1,015.2			1,107.4
Stockholders’ equity:
Common stock and additional paid-in capital		5,629.6			5,678.4			6,004.3
Accumulated deficit		(4,035.2	)		(4,064.5	)		(4,368.5	)
Accumulated other comprehensive loss		(319.4	)		(313.2	)		(318.3	)
Total stockholders’ equity		1,275.0			1,300.7			1,317.5
Total liabilities and stockholders’ equity	$	2,273.1		$	2,315.9		$	2,424.9

LSI CORPORATION

Consolidated Statements of Operations (GAAP)

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended								Nine Months Ended
	October 2, 2011			July 3, 2011			October 3, 2010		October 2, 2011		October 3, 2010
Revenues	$	546,910		$	500,644		$	452,878	$	1,520,818	$	1,398,997
Cost of revenues		261,399			240,692			204,001		727,550		649,487
Amortization of acquisition-related intangibles		20,206			20,281			28,835		62,305		86,505
Stock-based compensation expense		1,460			2,051			1,822		5,324		5,223
Total cost of revenues		283,065			263,024			234,658		795,179		741,215
Gross profit		263,845			237,620			218,220		725,639		657,782
Research and development		137,937			139,220			134,470		413,281		403,433
Stock-based compensation expense		5,410			6,653			6,047		18,286		18,817
Total research and development		143,347			145,873			140,517		431,567		422,250
Selling, general and administrative		64,672			58,526			54,122		178,115		164,615
Amortization of acquisition-related intangibles		8,319			8,319			8,948		24,957		26,844
Stock-based compensation expense		4,883			4,948			6,135		15,462		18,261
Total selling, general and administrative		77,874			71,793			69,205		218,534		209,720
Restructuring of operations and other items, net		10,784			(10,904	)		3,538		2,686		10,244
Income from operations		31,840			30,858			4,960		72,852		15,568
Interest expense		—			—			—		—		(5,601	)
Interest income and other, net		7,610			6,450			10,315		18,348		6,147
Income from continuing operation before income taxes		39,450			37,308			15,275		91,200		16,114
Provision for/(benefit from) income taxes		7,800			8,900			2,456		12,596		(13,735	)
Income from continuing operations		31,650			28,408			12,819		78,604		29,849
(Loss)/income from discontinued operations, net of tax		(2,311	)		265,376			10,602		254,673		23,524
Net income	$	29,339		$	293,784		$	23,421	$	333,277	$	53,373
Basic income per share:
Income from continuing operations	$	0.05		$	0.05		$	0.02	$	0.13	$	0.04
(Loss)/income from discontinued operations	$	(0.00	)	$	0.44		$	0.02	$	0.43	$	0.04
Net income	$	0.05		$	0.49		$	0.04	$	0.56	$	0.08
Diluted income per share:
Income from continuing operations	$	0.05		$	0.05		$	0.02	$	0.13	$	0.04
(Loss)/income from discontinued operations	$	(0.00	)	$	0.43		$	0.02	$	0.42	$	0.04
Net income	$	0.05		$	0.48		$	0.04	$	0.55	$	0.08
Shares used in computing per share amounts:
Basic		567,790			594,957			629,852		592,898		646,167
Diluted		581,483			611,093			633,731		608,743		653,685

A reconciliation of certain GAAP measures to non-GAAP measures is included below.

	Three Months Ended									Nine Months Ended
Reconciliation of GAAP net income to non-GAAP net income:	October 2, 2011			July 3, 2011			October 3, 2010			October 2, 2011			October 3, 2010
GAAP income from continuing operations	$	31,650		$	28,408		$	12,819		$	78,604		$	29,849
Special items:
a) Stock-based compensation expense – cost of revenues		1,460			2,051			1,822			5,324			5,223
b) Stock-based compensation expense – R&D		5,410			6,653			6,047			18,286			18,817
c) Stock-based compensation expense – SG&A		4,883			4,948			6,135			15,462			18,261
d) Amortization of acquisition-related intangibles – cost of revenues		20,206			20,281			28,835			62,305			86,505
e) Amortization of acquisition-related intangibles – SG&A		8,319			8,319			8,948			24,957			26,844
f) Restructuring of operations and other items, net		10,784			(10,904	)		3,538			2,686			10,244
g) (Gain) on sale/write-down of investments, net		—			—			(4,821	)		—			6,779
Total special items from continuing operations		51,062			31,348			50,504			129,020			172,673
Non-GAAP income from continuing operations	$	82,712		$	59,756		$	63,323		$	207,624		$	202,522
Non-GAAP income from continuing operations per share:
Basic	$	0.15		$	0.10		$	0.10		$	0.35		$	0.31
Diluted	$	0.14		$	0.10		$	0.10		$	0.34		$	0.31
GAAP net income	$	29,339		$	293,784		$	23,421		$	333,277		$	53,373
Special items:
a) Total special items from continuing operations		51,062			31,348			50,504			129,020			172,673
b) Stock-based compensation expense – discontinued operations		(385	)		(526	)		2,954			(592	)		9,583
c) Amortization of acquisition-related intangibles – discontinued operations		—			—			2,453			886			7,359
d) Restructuring of operations – discontinued operations		3,040			14,079			155			40,930			136
e) Gain on sale of business		—			(260,066	)		—			(260,066	)		—
Non-GAAP net income	$	83,056		$	78,619		$	79,487		$	243,455		$	243,124
Non-GAAP net income per share:
Basic	$	0.15		$	0.13		$	0.13		$	0.41		$	0.38
Diluted	$	0.14		$	0.13		$	0.13		$	0.40		$	0.37
Shares used in computing non-GAAP per share amounts:
Basic		567,790			594,957			629,852			592,898			646,167
Diluted		581,483			611,093			633,731			608,743			653,685
Reconciliation of GAAP income from operations to non-GAAP income from operations:
Income from operations - GAAP	$	31,840		$	30,858		$	4,960		$	72,852		$	15,568
Special items:
a) Stock-based compensation expense		11,753			13,652			14,004			39,072			42,301
b) Amortization of acquisition-related intangibles		28,525			28,600			37,783			87,262			113,349
c) Restructuring of operations and other items, net		10,784			(10,904	)		3,538			2,686			10,244
Income from operations - Non-GAAP	$	82,902		$	62,206		$	60,285		$	201,872		$	181,462

LSI CORPORATION

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Three Months Ended									Nine Months Ended
	October 2, 2011			July 3, 2011			October 3, 2010			October 2, 2011			October 3, 2010
Operating activities:
Net income	$	29,339		$	293,784		$	23,421		$	333,277		$	53,373
Adjustments:
Depreciation and amortization *		43,533			46,303			67,450			145,843			200,718
Stock-based compensation expense		11,368			13,126			16,958			38,480			51,884
Non-cash restructuring of operations and other items, net		9,571			10,140			—			30,535			(41	)
(Gain) on sale/write-down of investments, net		—			—			(4,821	)		—			6,779
Gain on sale of business		—			(260,066	)		—			(260,066	)		—
(Gain)/loss on sale of property and equipment		(35	)		(269	)		(115	)		(543	)		153
Unrealized foreign exchange (gain)/loss		(2,381	)		1,202			5,384			200			6,374
Deferred taxes		822			(19,723	)		(149	)		(18,944	)		34
Changes in assets and liabilities:
Accounts receivable, net		(14,262	)		52,006			(6,793	)		78,215			25,094
Inventories		(17,063	)		(30,489	)		(28,538	)		(60,203	)		(50,785	)
Prepaid expenses, assets held for sale and other assets		735			(9,925	)		7,555			(10,256	)		13,898
Accounts payable		(10,990	)		(14,983	)		(9,131	)		(1,700	)		(23,541	)
Accrued and other liabilities		(5,601	)		(42,812	)		10,919			(83,479	)		(28,405	)
Net cash provided by operating activities		45,036			38,294			82,140			191,359			255,535
Investing activities:
Purchases of debt securities available-for-sale		(14,552	)		(8,601	)		(23,029	)		(38,683	)		(24,218	)
Proceeds from maturities and sales of debt securities available-for-sale		8,543			10,487			14,684			31,988			36,209
Purchases of other investments		—			(4,000	)		—			(4,000	)		(316	)
Proceeds from sales of other investments		—			—			9,795			—			9,795
Purchases of property and equipment		(9,643	)		(15,656	)		(18,889	)		(46,841	)		(67,262	)
Proceeds from sale of property and equipment		43			586			360			939			559
Proceeds from sale of business, net of transaction costs		—			475,150			—			475,150			—
Net cash (used in)/provided by investing activities		(15,609	)		457,966			(17,079	)		418,553			(45,233	)
Financing activities:
Redemption of convertible subordinated notes		—			—			—			—			(349,999	)
Issuance of common stock		15,129			33,612			469			66,060			22,057
Purchase of common stock under repurchase programs		(74,995	)		(300,001	)		(137,011	)		(471,787	)		(217,743	)
Net cash used in financing activities		(59,866	)		(266,389	)		(136,542	)		(405,727	)		(545,685	)
Effect of exchange rate changes on cash and cash equivalents		147			(957	)		(915	)		(821	)		(3,927	)
Net change in cash and cash equivalents		(30,292	)		228,914			(72,396	)		203,364			(339,310	)
Cash and cash equivalents at beginning of period		755,442			526,528			511,377			521,786			778,291
Cash and cash equivalents at end of period	$	725,150		$	755,442		$	438,981		$	725,150		$	438,981

* Depreciation of fixed assets and amortization of intangible assets, software, and premiums on short-term investments.