Cadence Design Systems, Inc. 

Condensed Consolidated Statements of Cash Flows

For the Years Ended December 31, 2016 and January 2, 2016

(In thousands)

(Unaudited)

Years Ended

December 31, 

January 2,

2016

2016

Cash and cash equivalents at beginning of year

$         616,686

$   932,161

Cash flows from operating activities:

   Net income

203,086

252,417

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

      Depreciation and amortization

119,588

118,165

      Amortization of debt discount and fees

1,069

9,402

      Stock-based compensation

109,217

92,341

      Gain on investments, net

(4,725)

(2,124)

      Gain on sale of property, plant and equipment

(923)

-

      Deferred income taxes

(4,869)

(13,148)

      Other non-cash items

4,027

646

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

         Receivables

(3,299)

(44,732)

         Inventories

4,934

(1,120)

         Prepaid expenses and other

(6,903)

(1,380)

         Other assets

(6,566)

(1,558)

         Accounts payable and accrued liabilities

2,655

15,321

         Deferred revenue

30,742

(27,019)

         Other long-term liabilities

(3,154)

(19,011)

            Net cash provided by operating activities

444,879

378,200

Cash flows from investing activities:

  Purchases of available-for-sale securities

(20,525)

(96,531)

  Proceeds from the sale of available-for-sale securities

55,619

60,949

  Proceeds from the maturity of available-for-sale securities

57,762

31,316

  Proceeds from the sale of long-term investments

2,917

4,570

  Proceeds from the sale of property, plant and equipment

923

-

  Purchases of property, plant and equipment

(53,712)

(44,808)

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

(41,627)

-

           Net cash provided by (used for) investing activities

1,357

(44,504)

Cash flows from financing activities:

  Proceeds from term loan

300,000

-

  Proceeds from revolving credit facility

115,000

-

  Payment on revolving credit facility

(65,000)

-

  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

-

15,591

  Proceeds from issuance of common stock 

55,440

74,938

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

(37,226)

(33,651)

  Payments for repurchases of common stock

(960,289)

(333,189)

           Net cash used for financing activities

(592,697)

(626,310)

Effect of exchange rate changes on cash and cash equivalents

(4,993)

(22,861)

Decrease in cash and cash equivalents 

(151,454)

(315,475)

Cash and cash equivalents at end of year

$         465,232

$   616,686