Cadence Design Systems, Inc. 

Condensed Consolidated Statements of Cash Flows

For the Years Ended January 2, 2016 and January 3, 2015

(In thousands)

(Unaudited)

Years Ended

January 2, 

January 3,

2016

2015

Cash and cash equivalents at beginning of year

$    932,161

$   536,260

Cash flows from operating activities:

   Net income

252,417

158,898

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

      Depreciation and amortization

118,165

115,634

      Amortization of debt discount and fees

9,402

20,529

      Stock-based compensation

92,341

83,792

      Gain on investments, net

(2,124)

(4,707)

      Deferred income taxes

(13,148)

12,478

      Other non-cash items

646

6,854

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

         Receivables

(44,732)

(17,925)

         Inventories

(1,120)

(11,708)

         Prepaid expenses and other

(1,380)

(2,501)

         Other assets

(1,558)

(42,181)

         Accounts payable and accrued liabilities

15,321

3,856

         Deferred revenue

(27,019)

(11,860)

         Other long-term liabilities

(19,011)

5,563

            Net cash provided by operating activities

378,200

316,722

Cash flows from investing activities:

  Purchases of available-for-sale securities

(96,531)

(124,165)

  Proceeds from the sale of available-for-sale securities

60,949

85,384

  Proceeds from the maturity of available-for-sale securities

31,316

46,612

  Proceeds from the sale of long-term investments

4,570

1,085

  Purchases of property, plant and equipment

(44,808)

(39,810)

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

-

(167,121)

           Net cash used for investing activities

(44,504)

(198,015)

Cash flows from financing activities:

  Proceeds from issuance of debt

-

348,649

  Proceeds from revolving credit facility

-

100,000

  Payment on revolving credit facility

-

(100,000)

  Payment of convertible notes

(349,999)

(1)

  Payment of convertible notes embedded conversion derivative liability

(530,643)

(1)

  Proceeds from convertible notes hedges

530,643

1

  Payment of debt issuance costs

-

(6,500)

  Payment of acquisition-related contingent consideration

-

(1,835)

  Excess tax benefits from stock-based compensation

15,591

7,583

  Proceeds from issuance of common stock 

74,938

65,913

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

(33,651)

(24,727)

  Payments for repurchases of common stock

(333,189)

(100,117)

           Net cash provided by (used for) financing activities

(626,310)

288,965

Effect of exchange rate changes on cash and cash equivalents

(22,861)

(11,771)

Increase (decrease) in cash and cash equivalents 

(315,475)

395,901

Cash and cash equivalents at end of year

$    616,686

$   932,161