(Unaudited)

Three Months Ended

Year Ended

June 28,

March 29,

June 29,

June 28,

June 29,

2014

2014

2013

2014

2013

(in thousands)

Cash flows from operating activities: 

Net income

$     84,793

$   122,544

$   119,014

$   354,810

$   454,912

Adjustments to reconcile net income to net cash provided by operating activities: 

      Stock-based compensation 

21,786

22,057

18,853

85,452

83,808

      Depreciation and amortization 

64,391

64,665

51,191

244,593

207,136

      Deferred taxes 

(9,501)

(36,482)

(2,813)

(32,159)

25,372

      Loss (gain) from sale of property, plant and equipment

1,068

818

1,380

2,187

(1,156)

      Tax benefit (shortfall) related to stock-based compensation 

942

3,204

358

(68)

8,197

      Impairment of long-lived assets

6,447

-

-

11,644

24,929

      Impairment of investments in privately-held companies

6,537

3,723

700

10,260

700

      In-process research and development written-off

-

2,580

-

2,580

2,800

      Loss (gain) on sale of discontinued operations

-

-

-

-

(3,285)

      Excess tax benefit from stock-based compensation

(4,897)

(5,139)

(2,792)

(14,192)

(18,923)

      Changes in assets and liabilities: 

          Accounts receivable 

8,300

(15,566)

14,608

13,340

32,023

          Inventories 

1,226

7,717

(7,657)

20,672

(35,245)

          Other current assets 

26,579

7,194

(2,832)

45,557

(21,233)

          Accounts payable 

5,203

(4,044)

(6,961)

(11,255)

(32,510)

          Income taxes payable 

9,853

14,244

13,118

54,492

70,156

          Deferred revenue on shipments to distributors 

1,475

(1,283)

706

(823)

277

          All other accrued liabilities 

9,882

25,466

17,527

(10,983)

19,977

Net cash provided by (used in) operating activities 

234,084

211,698

214,400

776,107

817,935

Cash flows from investing activities: 

          Purchase of property, plant and equipment

(23,654)

(26,407)

(48,922)

(132,523)

(216,672)

          Proceeds from sales of property, plant and equipment

1,627

618

4,538

5,293

19,196

          Proceeds from sales of property, plant and equipment through note receivable

-

-

10,786

-

10,786

          Proceeds from maturity of available-for-sale securities

-

-

-

27,000

50,000

          Purchases of available-for-sale securities

(49,953)

-

-

(49,953)

-

          Purchases of privately-held companies securities

-

-

(500)

-

(500)

          Payments in connection to acquisitions

-

(5,750)

(2,767)

(459,256)

(2,767)

          Proceeds from sale of investments in privately-held companies

-

-

585

-

585

Net cash provided by (used in) investing activities 

(71,980)

(31,539)

(36,280)

(609,439)

(139,372)

Cash flows from financing activities: 

         Excess tax benefit from stock-based compensation

4,897

5,139

2,792

14,192

18,923

         Contingent consideration paid

-

(104)

(6,305)

(4,705)

(13,781)

         Dividends paid

(73,626)

(73,481)

(69,532)

(294,175)

(280,215)

         Repayment of notes payable

(2,430)

(439)

(302,299)

(4,708)

(303,500)

-

-

-

497,895

494,395

         Debt issuance cost

-

-

(671)

(3,431)

(3,921)

         Repurchase of common stock

(40,744)

(51,083)

(193,221)

(305,314)

(375,135)

         Issuance of ESPP shares under employee stock purchase program

23,713

-

19,529

42,809

36,297

         Net issuance of restricted stock units

(8,922)

(8,390)

(7,456)

(31,384)

(29,042)

         Proceeds from stock options exercised

26,232

29,538

6,049

69,639

71,342

Net cash provided by (used in) financing activities 

(70,880)

(98,820)

(551,114)

(19,182)

(384,637)

Net increase (decrease) in cash and cash equivalents 

91,224

81,339

(372,994)

147,486

293,926

Cash and cash equivalents: 

          Beginning of period

1,231,248

1,149,909

1,547,980

1,174,986

881,060

          End of period

$1,322,472

$1,231,248

$1,174,986

$1,322,472

$1,174,986

Total cash, cash equivalents and short-term investments

$1,372,425

$1,231,248

$1,200,046

$1,372,425

$1,200,046