Market Overview

Skyworks Exceeds Q3 FY18 Expectations

Share:
  • Delivers Revenue of $894.3 Million
  • GAAP Operating Margin 34.3%; Non-GAAP Operating Margin 36.3%
  • Record Q3 Diluted EPS: GAAP $1.57; Non-GAAP $1.64
  • Returns $298.0 Million to Shareholders via Share Buybacks and
    Dividends
  • Guides Q4 FY18 Revenue up 11 to 13% and Non-GAAP Diluted EPS up 16%
    Sequentially
  • Increases Quarterly Dividend by 19% to $0.38 Per Share

Skyworks Solutions, Inc. (NASDAQ:SWKS) an innovator of high performance
analog semiconductors connecting people, places and things, today
reported third fiscal quarter results for the period ended June 29,
2018. Revenue for the third fiscal quarter was $894.3 million, exceeding
consensus estimates.

On a GAAP basis, operating income for the third fiscal quarter of 2018
was $306.3 million with record Q3 diluted earnings per share of $1.57.
On a non-GAAP basis, operating income was $324.8 million with record Q3
non-GAAP diluted earnings per share of $1.64, $0.05 better than company
guidance.

"Skyworks exceeded June quarter expectations driven by our broadening
market reach, solid execution and resilient business model," said Liam
K. Griffin, president and chief executive officer of Skyworks. "We are
gaining first-mover advantage across Internet of Things and rapidly
emerging 5G applications with our Sky5™ platform. Leveraging our scale
and decades of system-level expertise, we are positioned to capitalize
on increasing demand for powerful and complex connectivity engines as
the global data economy accelerates."

Third Fiscal Quarter Business Highlights

  • Expanded Sky5™ suite with 5G antenna tuners
  • Launched connected street lighting modules with Philips for smart
    cities
  • Partnered with Sierra Wireless on LTE CAT-12 data cards for M2M
    applications
  • Commenced production of access solutions for Cisco's enterprise systems
  • Enabled telematics at BMW and General Motors
  • Extended reach within Linksys' new dual-band mesh networks
  • Ramped connectivity engines for Amazon's voice-enabled 4K Fire TV
    platforms
  • Increased footprint across Nest thermostats, fire detectors and video
    doorbells leveraging Bluetooth® Low Energy, Zigbee®, Thread and Wi-Fi®
    protocols
  • Unveiled networking products supporting AT&T/DIRECTV routers
  • Introduced high-precision GPS functionality improving ride-sharing,
    mobile payment and fleet management services
  • Deployed massive MIMO base station architectures with a leading
    European infrastructure provider

Fourth Fiscal Quarter 2018 Outlook

We provide earnings guidance on a non-GAAP basis because certain
information necessary to reconcile such guidance to GAAP is difficult to
estimate and dependent on future events outside of our control.
Please
refer to the attached Discussion Regarding the Use of Non-GAAP Financial
Measures in this press release for a further discussion of our use of
non-GAAP measures, including quantification of known expected adjustment
items.

"Skyworks is on track to deliver another record year of top and bottom
line results," said Kris Sennesael, senior vice president and chief
financial officer of Skyworks. "Specifically, for the fourth fiscal
quarter of 2018, we expect revenue to be up 11 to 13 percent
sequentially as design win momentum transitions to volume production. At
the $1 billion midpoint of this revenue range, we anticipate continued
margin expansion and 16 percent sequential growth in non-GAAP diluted
earnings per share to $1.91. Further, given our confidence in Skyworks'
strategic outlook, today we are announcing a substantial raise to our
quarterly dividend."

Dividend Increase and Payment

Skyworks' Board of Directors has declared a cash dividend of $0.38 per
share of the Company's common stock, representing a 19 percent increase
from the prior quarterly dividend of $0.32 per share. The dividend is
payable on August 28, 2018, to stockholders of record at the close of
business on August 7, 2018.

Skyworks' Third Fiscal Quarter 2018 Conference Call

Skyworks will host a conference call with analysts to discuss its third
fiscal quarter 2018 results and business outlook today at 5:00 p.m.
Eastern time. To listen to the conference call via the Internet, please
visit the investor relations section of Skyworks' website. To listen to
the conference call via telephone, please call (800) 230-1059 (domestic)
or (612) 234-9959 (international), confirmation code: 451109.

Playback of the conference call will begin at 9:00 p.m. Eastern time on
July 19, and end at 9:00 p.m. Eastern time on July 26. The replay will
be available on Skyworks' website or by calling (800) 475-6701
(domestic) or (320) 365-3844 (international), access code: 451109.

About Skyworks

Skyworks Solutions, Inc. is empowering the wireless networking
revolution. Our highly innovative analog semiconductors are connecting
people, places and things spanning a number of new and previously
unimagined applications within the automotive, broadband, cellular
infrastructure, connected home, industrial, medical, military,
smartphone, tablet and wearable markets.

Skyworks is a global company with engineering, marketing, operations,
sales and support facilities located throughout Asia, Europe and North
America and is a member of the S&P 500® and Nasdaq-100®
market indices (NASDAQ:SWKS). For more information, please visit
Skyworks' website at: www.skyworksinc.com.

Safe Harbor Statement

This news release includes "forward-looking statements" intended to
qualify for the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include without limitation information relating to future
results and expectations of Skyworks (e.g., certain projections and
business trends, plans for dividend payments, the use of its stock
repurchase program, and cash return rate to shareholders).
Forward-looking statements can often be identified by words such as
"anticipates," "expects," "forecasts," "intends," "believes," "plans,"
"may," "will," or "continue," and similar expressions and variations or
negatives of these words. All such statements are subject to certain
risks, uncertainties and other important factors that could cause actual
results to differ materially and adversely from those projected, and may
affect our future operating results, financial position and cash flows.

These risks, uncertainties and other important factors include, but are
not limited to: the susceptibility of the semiconductor industry and the
markets addressed by our, and our customers', products to economic
downturns; our reliance on several key customers for a large percentage
of our sales; the volatility of our stock price; declining selling
prices, decreased gross margins, and loss of market share as a result of
increased competition; our ability to obtain design wins from customers;
economic, social, military and geo-political conditions in the countries
in which we, our customers or our suppliers operate, including security
and health risks, imposition of trade protection measures (e.g., tariffs
or taxes), increased import/export restrictions and controls, and
possible disruptions in transportation networks and fluctuations in
foreign currency exchange rates; changes in laws, regulations and/or
policies that could adversely affect our operations and financial
results, the economy and our customers' demand for our products, or the
financial markets and our ability to raise capital; fluctuations in our
manufacturing yields due to our complex and specialized manufacturing
processes; our ability to develop, manufacture and market innovative
products, avoid product obsolescence, reduce costs in a timely manner,
transition our products to smaller geometry process technologies, and
achieve higher levels of design integration; the quality of our products
and any defect remediation costs; the availability and pricing of
third-party semiconductor foundry, assembly and test capacity, raw
materials and supplier components; our ability to retain, recruit and
hire key executives, technical personnel and other employees in the
positions and numbers, with the experience and capabilities, and at the
compensation levels needed to implement our business and product plans;
the timing, rescheduling or cancellation of significant customer orders
and our ability, as well as the ability of our customers, to manage
inventory; our ability to prevent theft of our intellectual property,
disclosure of confidential information, or breaches of our information
technology systems; uncertainties of litigation, including potential
disputes over intellectual property infringement and rights, as well as
payments related to the licensing and/or sale of such rights; our
ability to continue to grow and maintain an intellectual property
portfolio and obtain needed licenses from third parties; our ability to
make certain investments and acquisitions, integrate companies we
acquire, and/or enter into strategic alliances; and other risks and
uncertainties, including, but not limited to, those detailed from time
to time in our filings with the Securities and Exchange Commission.

The forward-looking statements contained in this news release are made
only as of the date hereof, and we undertake no obligation to update or
revise the forward-looking statements, whether as a result of new
information, future events or otherwise.

Note to Editors: Skyworks and the Skyworks symbol are trademarks or
registered trademarks of Skyworks Solutions, Inc. or its subsidiaries in
the United States and other countries. Third-party brands and names are
for identification purposes only, and are the property of their
respective owners.

 
SKYWORKS SOLUTIONS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
 
  Three Months Ended   Nine Months Ended
June 29,   June 30, June 29,   June 30,
(in millions, except per share amounts) 2018 2017 2018 2017
Net revenue $ 894.3 $ 900.8 $ 2,859.6 $ 2,666.8
Cost of goods sold   442.7   447.2   1,412.5   1,323.9
Gross profit 451.6 453.6 1,447.1 1,342.9
Operating expenses:
Research and development 96.8 92.0 301.5 263.4
Selling, general and administrative 44.6 49.5 153.4 148.2
Amortization of acquisition-related intangibles 3.9 7.1 12.0 22.6
Restructuring and other charges     0.2   1.0   0.8
Total operating expenses 145.3 148.8 467.9 435.0
Operating income 306.3 304.8 979.2 907.9
Other income, net   4.5   2.0   9.5   1.4
Income before income taxes 310.8 306.8 988.7 909.3
Provision for income taxes   24.3   60.6   355.8   180.4
Net income $ 286.5 $ 246.2 $ 632.9 $ 728.9
 
Earnings per share:
Basic $ 1.58 $ 1.34 $ 3.47 $ 3.95
Diluted $ 1.57 $ 1.32 $ 3.44 $ 3.90
Weighted average shares:
Basic   181.2   184.2   182.3   184.6
Diluted   182.8   186.6   184.2   187.0
 
 
SKYWORKS SOLUTIONS, INC.
UNAUDITED RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
 
  Three Months Ended   Nine Months Ended
June 29,   June 30, June 29,   June 30,
(in millions) 2018 2017 2018 2017
GAAP gross profit $ 451.6 $ 453.6 $ 1,447.1 $ 1,342.9
Share-based compensation expense [a]   3.3     2.9     11.6     10.1  
Non-GAAP gross profit $ 454.9   $ 456.5   $ 1,458.7   $ 1,353.0  
GAAP gross margin % 50.5 % 50.4 % 50.6 % 50.4 %
Non-GAAP gross margin % 50.9 % 50.7 % 51.0 % 50.7 %
 
Three Months Ended Nine Months Ended
June 29, June 30, June 29, June 30,
(in millions) 2018 2017 2018 2017
GAAP operating income $ 306.3 $ 304.8 $ 979.2 $ 907.9
Share-based compensation expense [a] 19.5 20.6 86.3 64.3
Acquisition-related expenses (benefit) [b] (4.9 ) 0.4 (6.9 ) 4.3
Amortization of acquisition-related intangibles [c] 3.9 7.1 12.0 22.6
Restructuring and other charges (earnings) [d]       0.2     (0.7 )   0.8  
Non-GAAP operating income $ 324.8   $ 333.1   $ 1,069.9   $ 999.9  
GAAP operating margin % 34.3 % 33.8 % 34.2 % 34.0 %
Non-GAAP operating margin % 36.3 % 37.0 % 37.4 % 37.5 %
 
Three Months Ended Nine Months Ended
June 29, June 30, June 29, June 30,
(in millions) 2018 2017 2018 2017
GAAP net income $ 286.5 $ 246.2 $ 632.9 $ 728.9
Share-based compensation expense [a] 19.5 20.6 86.3 64.3
Acquisition-related expenses (benefit) [b] (4.9 ) 0.4 (6.9 ) 4.3
Amortization of acquisition-related intangibles [c] 3.9 7.1 12.0 22.6
Restructuring and other charges (earnings) [d] 0.2 (0.7 ) 0.8
Tax adjustments [e]   (5.1 )   18.2     250.1     45.4  
Non-GAAP net income $ 299.9   $ 292.7   $ 973.7   $ 866.3  
 
Three Months Ended Nine Months Ended
June 29, June 30, June 29, June 30,
2018 2017 2018 2017
GAAP net income per share, diluted $ 1.57 $ 1.32 $ 3.44 $ 3.90
Share-based compensation expense [a] 0.11 0.11 0.47 0.34
Acquisition-related expenses (benefit) [b] (0.03 ) (0.04 ) 0.02
Amortization of acquisition-related intangibles [c] 0.02 0.04 0.07 0.12
Restructuring and other charges [d]
Tax adjustments [e]   (0.03 )   0.10     1.35     0.25  
Non-GAAP net income per share, diluted $ 1.64   $ 1.57   $ 5.29   $ 4.63  
 

SKYWORKS SOLUTIONS, INC.
DISCUSSION REGARDING THE USE OF
NON-GAAP FINANCIAL MEASURES

Our earnings release contains some or all of the following financial
measures that have not been calculated in accordance with United States
Generally Accepted Accounting Principles ("GAAP"): (i) non-GAAP gross
profit and gross margin, (ii) non-GAAP operating income and operating
margin, (iii) non-GAAP net income, and (iv) non-GAAP diluted earnings
per share. As set forth in the "Unaudited Reconciliations of Non-GAAP
Financial Measures" table found above, we derive such non-GAAP financial
measures by excluding certain expenses and other items from the
respective GAAP financial measure that is most directly comparable to
each non-GAAP financial measure. Management uses these non-GAAP
financial measures to evaluate our operating performance and compare it
against past periods, make operating decisions, forecast for future
periods, compare our operating performance against peer companies and
determine payments under certain compensation programs. These non-GAAP
financial measures provide management with additional means to
understand and evaluate the operating results and trends in our
ongoing business by eliminating certain non-recurring expenses and other
items that management believes might otherwise make comparisons of our
ongoing business with prior periods and competitors more difficult,
obscure trends in ongoing operations or reduce management's ability to
make forecasts.

We provide investors with non-GAAP gross profit and gross margin,
non-GAAP operating income and operating margin, non-GAAP net income and
non-GAAP diluted earnings per share because we believe it is important
for investors to be able to closely monitor and understand changes in
our ability to generate income from ongoing business operations. We
believe these non-GAAP financial measures give investors an additional
method to evaluate historical operating performance and identify trends,
an additional means of evaluating period-over-period operating
performance and a method to facilitate certain comparisons of our
operating results to those of our peer companies. We also believe that
providing non-GAAP operating income and operating margin allows
investors to assess the extent to which our ongoing operations impact
our overall financial performance. We further believe that providing
non-GAAP net income and non-GAAP diluted earnings per share allows
investors to assess the overall financial performance of our ongoing
operations by eliminating the impact of share-based compensation
expense, acquisition-related expenses, amortization of intangibles,
restructuring-related charges, litigation settlement gains, losses and
expenses, and certain tax items which may not occur in each period
presented and which may represent non-cash items unrelated to our
ongoing operations. We believe that disclosing these non-GAAP financial
measures contributes to enhanced financial reporting transparency and
provides investors with added clarity about complex financial
performance measures.

We calculate non-GAAP gross profit by excluding from GAAP gross profit,
share-based compensation expense and acquisition-related expenses. We
calculate non-GAAP operating income by excluding from GAAP operating
income, share-based compensation expense, acquisition-related expenses,
amortization of intangibles, restructuring-related charges, and
litigation settlement gains, losses and expenses. We calculate non-GAAP
net income and diluted earnings per share by excluding from GAAP net
income and diluted earnings per share, share-based compensation expense,
acquisition-related expenses, amortization of intangibles,
restructuring-related charges, litigation settlement gains, losses and
expenses, and certain tax items. We exclude the items identified above
from the respective non-GAAP financial measure referenced above for the
reasons set forth with respect to each such excluded item below:

Share-Based Compensation - because (1) the total amount of
expense is partially outside of our control because it is based on
factors such as stock price volatility and interest rates, which may be
unrelated to our performance during the period in which the expense is
incurred, (2) it is an expense based upon a valuation methodology
premised on assumptions that vary over time, and (3) the amount of the
expense can vary significantly between companies due to factors that can
be outside of the control of such companies.

Acquisition-Related Expenses - including such items as, when
applicable, amortization of acquired intangible assets, fair value
adjustments to contingent consideration, fair value charges incurred
upon the sale of acquired inventory, acquisition-related professional
fees, deemed compensation expenses and interest expense on
seller-financed debt, because they are not considered by management in
making operating decisions and we believe that such expenses do not have
a direct correlation to our future business operations and thereby
including such charges does not necessarily reflect the performance of
our ongoing operations for the period in which such charges or reversals
are incurred.

Restructuring-Related Charges - because, to the extent such
charges or reversals impact a period presented, we believe that they
have no direct correlation to our future business operations and
including such charges does not necessarily reflect the performance of
our ongoing operations for the period in which such charges are incurred.

Litigation Settlement Gains, Losses and Expenses - including
gains, losses and expenses related to the resolution of
other-than-ordinary-course threatened and actually filed lawsuits and
other-than-ordinary-course contractual disputes, because (1) they are
not considered by management in making operating decisions, (2) such
litigation has been infrequent in nature, (3) such gains, losses and
expenses are generally not directly controlled by management, (4) we
believe such gains, losses and expenses do not necessarily reflect the
performance of our ongoing operations for the period in which such
charges are recognized and (5) the amount of such gains or losses and
expenses can vary significantly between companies and make comparisons
less reliable.

Certain Income Tax Items - including certain deferred tax charges
and benefits that do not result in a current tax payment or tax refund
and other adjustments, including but not limited to, items unrelated to
the current fiscal year or that are not indicative of our ongoing
business operations.

The non-GAAP financial measures presented in the table above should not
be considered in isolation and are not an alternative for the respective
GAAP financial measure that is most directly comparable to each such
non-GAAP financial measure. Investors are cautioned against placing
undue reliance on these non-GAAP financial measures and are urged to
review and consider carefully the adjustments made by management to the
most directly comparable GAAP financial measures to arrive at these
non-GAAP financial measures. Non-GAAP financial measures may have
limited value as analytical tools because they may exclude certain
expenses that some investors consider important in evaluating our
operating performance or ongoing business performance. Further, non-GAAP
financial measures are likely to have limited value for purposes of
drawing comparisons between companies because different companies may
calculate similarly titled non-GAAP financial measures in different ways
because non-GAAP measures are not based on any comprehensive set of
accounting rules or principles.

Our earnings release contains forward-looking estimates of non-GAAP
diluted earnings per share for the fourth quarter of our 2018 fiscal
year ("Q4 2018"). We provide this non-GAAP measure to investors on a
prospective basis for the same reasons (set forth above) that we provide
it to investors on a historical basis. We are unable to provide a
reconciliation of our forward-looking estimate of Q4 2018 GAAP diluted
earnings per share to a forward-looking estimate of Q4 2018 non-GAAP
diluted earnings per share because certain information needed to make a
reasonable forward-looking estimate of GAAP diluted earnings per share
for Q4 2018 (other than estimated share-based compensation expense of
$0.10 to $0.20 per diluted share, certain tax items of $(0.05) to $0.05
per diluted share and estimated amortization of intangibles of $0.01 to
$0.03 per diluted share) is difficult to predict and estimate and is
often dependent on future events that may be uncertain or outside of our
control. Such events may include unanticipated changes in our GAAP
effective tax rate, unanticipated one-time charges related to asset
impairments (fixed assets, inventory, intangibles or goodwill),
unanticipated acquisition-related expenses, unanticipated litigation
settlement gains, losses and expenses and other unanticipated
non-recurring items not reflective of ongoing operations. The probable
significance of these unknown items, in the aggregate, is estimated to
be in the range of $0.01 to $0.04 in quarterly earnings per diluted
share on a GAAP basis. Our forward-looking estimates of both GAAP and
non-GAAP measures of our financial performance may differ materially
from our actual results and should not be relied upon as statements of
fact.

 
[a] These charges represent expense recognized in accordance with ASC
718 - Compensation, Stock Compensation. For the three months
ended June 29, 2018, approximately $3.3 million, $6.5 million and
$9.7 million were included in cost of goods sold, research and
development expense and selling, general and administrative expense,
respectively. For the nine months ended June 29, 2018, approximately
$11.6 million, $32.2 million and $42.5 million were included in cost
of goods sold, research and development expense and selling, general
and administrative expense, respectively.
 
For the three months ended June 30, 2017, approximately $2.9
million, $9.1 million and $8.6 million were included in cost of
goods sold, research and development expense and selling, general
and administrative expense, respectively. For the nine months ended
June 30, 2017, approximately $10.1 million, $25.9 million and $28.3
million were included in cost of goods sold, research and
development expense and selling, general and administrative expense,
respectively.
 
[b] The acquisition-related expenses recognized during the three months
ended June 29, 2018, include a $5.0 million benefit for fair value
adjustments to reduce contingent considerations partially offset by
a $0.1 million charge to general and administrative expenses,
primarily associated with acquisitions completed or contemplated
during the period. The acquisition-related expenses recognized
during the nine months ended June 29, 2018, include a $7.8 million
benefit for fair value adjustments to reduce contingent
considerations partially offset by a $0.9 million charge to general
and administrative expenses, primarily associated with acquisitions
completed or contemplated during the period.
 
The acquisition-related expenses recognized during the three months
and nine months ended June 30, 2017, include a $0.4 million and a
$4.3 million charge, respectively, to general and administrative
expenses primarily associated with acquisitions completed or
contemplated during the period.
 
[c] During the three months and nine months ended June 29, 2018, the
Company incurred $3.9 million and $12.0 million, respectively, in
amortization of acquisition-related intangibles.
 
During the three months and nine months ended June 30, 2017, the
Company incurred $7.1 million and $22.6 million, respectively, in
amortization of acquisition-related intangibles.
 
[d] During the nine months ended June 29, 2018, the Company recognized a
$1.7 million benefit for a change in the estimated expense related
to an executive agreement offset by a $1.0 million charge to revise
an estimate related to a leased facility included in a previously
announced restructuring plan.
 
During the three and nine months ended June 30, 2017, the Company
incurred $0.2 million and $0.8 million, respectively, in employee
severance costs primarily related to restructuring plans that were
implemented during the periods.
 
[e] During the three months and nine months ended June 29, 2018, these
amounts generally represent the use of net operating loss and
research and development tax credit carryforwards, deferred tax
expense not affecting taxes payable, tax deductible share-based
compensation expense in excess of GAAP share-based compensation
expense, and non-cash expense (benefit) related to uncertain tax
positions. Included in these amounts for the nine months ended June
29, 2018, is a one-time charge of $238.0 million related to the
mandatory deemed repatriation tax on foreign earnings and a one-time
charge of $18.5 million related to the revaluation of deferred tax
assets and liabilities related to tax reform.
 
During the three months and nine months ended June 30, 2017, these
amounts primarily represent the use of net operating loss and
research and development tax credit carryforwards, deferred tax
expense not affecting taxes payable, tax deductible share-based
compensation expense in excess of GAAP share-based compensation
expense, the release of previously reserved items that are no longer
required as a result of IRS audits, and non-cash expense (benefit)
related to uncertain tax positions.
 
 
SKYWORKS SOLUTIONS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
       
June 29, September 29,
(in millions) 2018 2017
Assets
Cash, cash equivalents and marketable securities $ 1,648.8 $ 1,616.8
Accounts receivable, net 468.4 454.7
Inventory 502.8 493.5
Property, plant and equipment, net 1,034.6 882.3
Goodwill and intangible assets, net 942.9 950.8
Other assets   185.8   175.5
Total assets $ 4,783.3 $ 4,573.6
 
Liabilities and Equity
Accounts payable $ 230.2 $ 258.4
Accrued and other liabilities 470.2 249.5
Stockholders' equity   4,082.9   4,065.7
Total liabilities and equity $ 4,783.3 $ 4,573.6
 
 
SKYWORKS SOLUTIONS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
       
Three Months Ended Nine Months Ended
June 29, June 30, June 29, June 30,
(in millions) 2018 2017 2018 2017
Cash flow from operating activities
Net income $ 286.5 $ 246.2 $ 632.9 $ 728.9
Adjustments to reconcile net income to net cash provided by
operating activities:
Share-based compensation 19.5 20.6 86.3 64.3
Depreciation 69.3 55.6 198.9 166.8
Amortization of intangible assets 5.4 7.1 16.5 22.6
Deferred income taxes 10.0 1.9 35.6 2.8
Excess tax benefit from share-based compensation (7.2 ) (35.4 )
Changes in fair value of contingent consideration (7.8 ) (7.8 )
Other 0.3 0.3
Changes in operating assets:
Receivables, net (101.2 ) (28.6 ) (13.7 ) 20.2
Inventory (36.5 ) (37.4 ) (10.2 ) (58.7 )
Other current and long-term assets (18.7 ) 8.8 (45.8 ) (9.3 )
Accounts payable 25.9 14.9 (56.3 ) 68.1
Other current and long-term liabilities   5.3     32.2     216.3     68.4  
Net cash provided by operations   258.0     314.1     1,053.0     1,038.7  
Cash flow from investing activities
Capital expenditures (191.5 ) (113.0 ) (310.0 ) (218.0 )
Payments for acquisitions, net of cash acquired (13.7 )
Purchased intangibles (2.6 ) (8.6 )
Purchases of marketable securities (523.2 ) (523.2 )
Maturities and sales of marketable securities   32.6         32.6     3.2  
Net cash used in investing activities   (684.7 )   (113.0 )   (809.2 )   (228.5 )
Cash flow from financing activities
Excess tax benefit from share-based compensation 7.2 35.4
Repurchase of common stock — payroll tax withholdings on equity
awards
(1.0 ) (3.4 ) (47.5 ) (48.0 )
Repurchase of common stock — stock repurchase program (240.3 ) (128.8 ) (524.5 ) (330.5 )
Dividends paid (57.7 ) (51.6 ) (175.2 ) (155.7 )
Net proceeds from exercise of stock options 2.5 13.9 34.8 45.8
Contribution of common shares to employee savings plan 9.9 7.2
Payments of contingent consideration       (1.3 )       (4.2 )
Net cash used in financing activities   (296.5 )   (164.0 )   (702.5 )   (450.0 )
Net increase (decrease) in cash and cash equivalents (723.2 ) 37.1 (458.7 ) 360.2
Cash and cash equivalents at beginning of period   1,881.3     1,406.9     1,616.8     1,083.8  
Cash and cash equivalents at end of period $ 1,158.1   $ 1,444.0   $ 1,158.1   $ 1,444.0  
 

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