Intersil Corporation

Condensed Consolidated Statements of Cash Flows

Unaudited

(In thousands)

Quarter Ended

Year Ended

Jan. 2,

Oct. 3,

Jan. 3,

Jan. 2,

Jan. 3,

2015

2014

2014

2015

2014

Q4 2014

Q3 2014

Q4 2013

Operating activities:

Net income

$   17,274

$   13,887

$     7,509

$   54,812

$     2,855

   Depreciation

4,930

4,898

4,210

19,423

18,950

   Amortization of purchased intangibles

5,559

5,561

5,561

22,241

24,579

   Equity-based compensation

5,009

4,385

3,868

18,688

19,091

   Other

(1,327)

(195)

(123)

(2,162)

5,948

   Deferred income taxes

8,024

2,985

(1,804)

35,569

10,196

   Net changes in operating assets and liabilities

(21,158)

(7,505)

27,049

(75,182)

25,095

   Net cash flows from operating activities

18,311

24,016

46,270

73,389

106,714

Investing activities:

Proceeds from investments

615

192

1,075

5,616

Net capital expenditures

(3,857)

(3,150)

(2,809)

(9,857)

(18,581)

   Net cash flows from investing activities

(3,242)

(2,958)

(2,809)

(8,782)

(12,965)

Financing activities:

Proceeds from equity-based awards, net

1,794

5,700

82

16,939

4,353

Dividends paid

(15,685)

(15,634)

(15,366)

(62,910)

(61,920)

   Net cash flows from financing activities

(13,891)

(9,934)

(15,284)

(45,971)

(57,567)

Effect of exchange rates on cash and cash equivalents

(544)

(1,783)

(190)

(2,207)

(205)

   Net change in cash and cash equivalents

634

9,341

27,987

16,429

35,977

Cash and cash equivalents as of the beginning of the period

210,582

201,241

166,800

194,787

158,810

   Cash and cash equivalents as of the end of the period

$ 211,216

$ 210,582

$ 194,787

$ 211,216

$ 194,787