Cadence Design Systems, Inc. 

Condensed Consolidated Statements of Cash Flows

For the Three Months Ended April 4, 2015 and March 29, 2014

(In thousands)

(Unaudited)

Three Months Ended

April 4,

March 29,

2015

2014

Cash and cash equivalents at beginning of period

$ 932,161

$  536,260

Cash flows from operating activities:

   Net income

36,259

33,070

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

      Depreciation and amortization

29,433

26,017

      Amortization of debt discount and fees

5,945

4,882

      Stock-based compensation

21,861

18,864

      Gain on investments, net

(1,270)

(3,651)

      Deferred income taxes

1,864

2,245

      Other non-cash items

929

2,344

      Changes in operating assets and liabilities, net of effect of acquired businesses:

         Receivables

(12,450)

(108)

         Inventories

1,682

(9,373)

         Prepaid expenses and other

(10,004)

(9,753)

         Other assets

3,627

3,157

         Accounts payable and accrued liabilities

(44,754)

(29,680)

         Deferred revenue

16,812

(5,508)

         Other long-term liabilities

(3,246)

(4,408)

            Net cash provided by operating activities

46,688

28,098

Cash flows from investing activities:

  Purchases of available-for-sale securities

(33,161)

(47,005)

  Proceeds from the sale of available-for-sale securities

20,551

32,586

  Proceeds from the maturity of available-for-sale securities

10,350

13,905

  Proceeds from the sale of long-term investments

1,364

-

  Purchases of property, plant and equipment

(7,520)

(6,252)

  Cash paid in business combinations and asset acquisitions, net of cash acquired

-

(27,422)

           Net cash used for investing activities

(8,416)

(34,188)

Cash flows from financing activities:

  Payment of convertible notes

(53,862)

-

  Payment of convertible notes embedded conversion derivative liability

(77,139)

-

  Proceeds from convertible notes hedges

77,139

-

  Payment of acquisition-related contingent consideration

-

(1,835)

  Tax effect related to employee stock transactions allocated to equity

6,482

1,827

  Proceeds from issuance of common stock 

24,609

23,377

  Stock received for payment of employee taxes on vesting of restricted stock

(14,114)

(10,981)

  Payments for repurchases of common stock

(36,797)

(12,517)

           Net cash used for financing activities

(73,682)

(129)

Effect of exchange rate changes on cash and cash equivalents

(9,015)

2,720

Decrease in cash and cash equivalents 

(44,425)

(3,499)

Cash and cash equivalents at end of period

$ 887,736

$  532,761