Year Ended September 30, 2013 2012 2011 Cash Flow from Operating Activities: Net income .......................................................... $ 412,439 $ 391,371 $ 346,665 Reconciliation of net income to net cash provided by operating activities: Depreciation and amortization ........................................ 140,776 159,614 181,477 Equity-based compensation expense .................................... 40,340 43,429 36,631 Deferred income taxes ............................................... 12,485 (4,857) 1,252 Excess tax benefit from equity-based compensation ........................ (366) (181) (178) Gain on sale of investments ........................................... — (9,172) — Loss from short-term interest-bearing investments ......................... 2,269 3,041 1,386 Net changes in operating assets and liabilities, net of amounts acquired: Accounts receivable, net ............................................. 29,999 (106,551) 38,062 Prepaid expenses and other current assets ................................ (86) 1,601 (10,741) Other noncurrent assets .............................................. 29,384 19,734 (15,807) Accounts payable, accrued expenses and accrued personnel ................. (4,104) 60,200 (46,976) Deferred revenue ................................................... (15,078) (55,811) (34,444) Income taxes payable, net ............................................ (5,268) 14,305 27,289 Other noncurrent liabilities ........................................... 27,757 (2,654) 10,876 Net cash provided by operating activities .................................. 670,547 514,069 535,492 Cash Flow from Investing Activities: Payments for purchase of equipment and leasehold improvements, net ........... (106,724) (122,053) (109,779) Proceeds from sale of short-term interest-bearing investments ................. 311,677 440,145 591,147 Purchase of short-term interest-bearing investments ......................... (386,876) (337,989) (521,999) Net cash paid for acquisitions ........................................... (112,405) — (162,964) Cash received from sale of investments ................................... — 11,172 — Other .............................................................. (2,801) (8,564) (18,076) Net cash used in investing activities ...................................... (297,129) (17,289) (221,671) Cash Flow from Financing Activities: Borrowings under financing arrangements ................................. 200,000 200,000 250,000 Payments under financing arrangements ................................... (200,000) (250,000) (200,000) Repurchase of shares .................................................. (367,061) (484,608) (624,241) Proceeds from employee stock options exercised ............................ 213,430 86,674 56,474 Payments of dividends ................................................. (84,008) — — Payments under capital lease, short-term financing arrangements and other ....... (745) (1,059) (878) Net cash used in financing activities ...................................... (238,384) (448,993) (518,645) Net increase (decrease) in cash and cash equivalents ......................... 135,034 47,787 (204,824) Cash and cash equivalents at beginning of year ............................. 879,158 831,371 1,036,195 Cash and cash equivalents at end of year .................................. $1,014,192 $ 879,158 $ 831,371 Supplementary Cash Flow Information Interest and Income Taxes Paid Cash paid for: Income taxes, net of refunds .......................................... $ 38,441 $ 36,909 $ 19,611 Interest ........................................................... 468 408 433 The accompanying notes are an integral part of these consolidated financial statements. F-9 CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) AMDOCS LIMITED