CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended

September 24, 

June 25, 

September 26, 

2016

2016

2015

(in thousands)

Cash flows from operating activities:

Net income (loss)

$         137,614

$           92,339

$         (72,143)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Stock-based compensation

17,120

16,444

16,963

Depreciation and amortization

43,485

46,414

102,053

Deferred taxes

14,895

(13,510)

(53,111)

In-process research and development written-off

-

27,602

-

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

652

5,048

(1,346)

Loss (gain) on sale of business

(26,620)

-

-

Tax benefit (shortfall) related to stock-based compensation 

-

3,657

1,193

Impairment of long-lived assets

6,134

-

157,697

Excess tax benefit from stock-based compensation

-

(1,890)

(2,249)

Changes in assets and liabilities:

Accounts receivable

3,013

21,971

(3,627)

Inventories

2,517

7,657

(2,167)

Other current assets

(12,099)

8,012

4,796

Accounts payable

(858)

5,076

(9,776)

Income taxes payable

110

19,792

34,127

Deferred revenue on shipments to distributors

(3,025)

4,322

4,764

Accrued salary and related expenses

(55,572)

15,287

(60,718)

All other accrued liabilities

(3,964)

(4,150)

883

Net cash provided by (used in) operating activities

123,402

254,071

117,339

Cash flows from investing activities:

Purchase of property, plant and equipment

(14,310)

(22,488)

(15,821)

Proceeds from sales of property, plant and equipment

205

34,691

606

Proceeds from sale of available-for-sale securities

24,540

-

-

Proceeds from maturity of available-for-sale securities

25,000

50,000

-

Proceeds from sale of business

42,199

-

-

Purchases of available-for-sale securities

(75,224)

(25,000)

(25,055)

Purchases of privately-held companies' securities

(2,337)

(1,554)

(1,000)

Net cash provided by (used in) investing activities

73

35,649

(41,270)

Cash flows from financing activities:

Excess tax benefit from stock-based compensation 

-

1,890

2,249

Issuance of debt

-

249,717

-

Net issuance of restricted stock units

(5,206)

(2,687)

(4,822)

Proceeds from stock options exercised

19,911

12,272

8,970

Issuance of common stock under employee stock purchase program

-

19,625

-

Repurchase of common stock

(57,709)

(90,438)

(39,697)

Dividends paid

(93,627)

(85,210)

(85,387)

Net cash provided by (used in) financing activities

(136,631)

105,169

(118,687)

Net increase (decrease) in cash and cash equivalents

(13,156)

394,889

(42,618)

Cash and cash equivalents:

Beginning of period

2,105,229

1,710,340

1,550,965

End of period

$      2,092,073

$      2,105,229

$      1,508,347

Total cash, cash equivalents, and short-term investments

$      2,267,514

$      2,230,668

$      1,608,632