Cadence Design Systems, Inc. 

Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended October 1, 2016 and October 3, 2015

(In thousands)

(Unaudited)

Nine Months Ended

October 1, 

October 3,

2016

2015

Cash and cash equivalents at beginning of period

$  616,686

$ 932,161

Cash flows from operating activities:

   Net income

164,609

172,043

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

      Depreciation and amortization

89,726

88,006

      Amortization of debt discount and fees

792

9,185

      Stock-based compensation

79,986

67,681

      Gain on investments, net

(4,070)

(1,434)

      Gain on sale of property, plant and equipment

(482)

-

      Deferred income taxes

8,657

1,713

      Other non-cash items

1,869

(69)

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

         Receivables

2,873

(10,100)

         Inventories

(16,339)

(1,861)

         Prepaid expenses and other

(12,135)

(12,451)

         Other assets

(3,822)

300

         Accounts payable and accrued liabilities

(46,585)

(28,154)

         Deferred revenue

(10,823)

(9,207)

         Other long-term liabilities

(6,239)

(20,303)

            Net cash provided by operating activities

248,017

255,349

Cash flows from investing activities:

  Purchases of available-for-sale securities

(20,525)

(81,300)

  Proceeds from the sale of available-for-sale securities

55,418

50,806

  Proceeds from the maturity of available-for-sale securities

52,362

25,550

  Proceeds from the sale of long-term investments

2,913

4,510

  Proceeds from the sale of property, plant and equipment

482

-

  Purchases of property, plant and equipment

(42,452)

(34,093)

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

(41,627)

-

           Net cash provided by (used for) investing activities

6,571

(34,527)

Cash flows from financing activities:

  Proceeds from term loan

300,000

-

  Proceeds from revolving credit facility

50,000

-

  Payment of debt issuance costs

(622)

-

  Payment of convertible notes

-

(349,999)

  Payment of convertible notes embedded conversion derivative liability

-

(530,643)

  Proceeds from convertible notes hedges

-

530,643

  Excess tax benefits from stock-based compensation

-

16,940

  Proceeds from issuance of common stock 

50,293

59,448

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

(35,532)

(31,795)

  Payments for repurchases of common stock

(720,196)

(213,135)

           Net cash used for financing activities

(356,057)

(518,541)

Effect of exchange rate changes on cash and cash equivalents

9,116

(18,351)

Decrease in cash and cash equivalents 

(92,353)

(316,070)

Cash and cash equivalents at end of period

$  524,333

$ 616,091