Intersil Corporation

Condensed Consolidated Statements of Cash Flows

Unaudited

(In thousands)

Quarter Ended

Sep. 30

Jul. 1

Oct. 2

2016

2016

2015

Q3 2016

Q2 2016

Q3 2015

Operating activities:

Net income

$                15,883

$        1,389

$      16,984

   Depreciation

2,903

3,467

3,635

   Amortization of purchased intangibles

2,669

2,867

3,777

   Equity-based compensation

5,563

8,122

5,565

   Asset impairment charges

-

9,998

-

   Deferred income taxes

4,099

(1,635)

1,412

   Other

(1,071)

(847)

(771)

   Net changes in operating assets and liabilities

(6,777)

3,835

4,193

    Net cash flows provided by operating activities

23,269

27,196

34,795

Investing activities:

   Cash paid for acquisition, net of cash acquired

-

-

(15,948)

   Proceeds from investments

865

42

460

   Net capital expenditures

(1,784)

(2,004)

(1,764)

   Advance received for planned disposition of 200mm line

2,422

-

-

     Net cash flows provided by/ (used in) investing activities

1,503

(1,962)

(17,252)

Financing activities:

   Proceeds from (tax payments for) equity-based awards, net

18,446

(3,168)

2,587

   Dividends paid

(16,338)

(18,878)

(15,959)

     Net cash flows provided by/ (used in) financing activities

2,108

(22,046)

(13,372)

Effect of exchange rates on cash and cash equivalents

303

70

     Net change in cash and cash equivalents

27,183

3,258

3,936

Cash and cash equivalents as of the beginning of the period

256,864

253,606

224,962

    Cash and cash equivalents as of the end of the period

$              284,047

$    256,864

$    228,898