CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended

December 29,
 2018

September 29,
 2018

December 30,
 2017

(in thousands)

Cash flows from operating activities:

Net income (loss)

$

131,892

$

197,423

$

(75,015)

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

Stock-based compensation

21,656

20,497

21,040

Depreciation and amortization

26,803

31,191

35,813

Deferred taxes

(5,174)

(3,032)

(3,188)

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

2,275

621

(649)

Impairment of investments in privately-held companies

753

—

850

Other adjustments

—

(117)

—

Changes in assets and liabilities:

Accounts receivable

43,402

(23,604)

(2,480)

Inventories

(3,505)

7,002

(14,125)

Other current assets

6,038

(12,625)

31,459

Accounts payable

7,664

(5,263)

13,643

Income taxes payable

(482)

33,743

234,264

Deferred margin on shipments to distributors

—

—

(16,994)

Accrued salary and related expenses

(375)

(45,408)

10,523

All other accrued liabilities

(6,697)

6,757

(5,266)

Net cash provided by (used in) operating activities

224,250

207,185

229,875

Cash flows from investing activities:

Purchase of property, plant and equipment

(12,597)

(18,316)

(22,413)

Proceeds from sales of property, plant and equipment

1

1

1,444

Proceeds from sale of available-for-sale securities

18,815

8,438

21,895

Proceeds from maturity of available-for-sale securities

416,720

301,834

118,211

Payment in connection with business acquisition, net of cash acquired

—

(2,949)

—

Purchases of available-for-sale securities

(23,707)

(190,880)

(137,166)

Purchases of privately-held companies' securities

(156)

(750)

(1,500)

Net cash provided by (used in) investing activities

399,076

97,378

(19,529)

Cash flows from financing activities:

Repayment of debt

(500,000)

—

—

Contingent consideration paid

—

(8,000)

—

Net issuance of restricted stock units

(5,916)

(7,528)

(6,104)

Proceeds from stock options exercised

7,235

6,608

13,507

Issuance of common stock under employee stock purchase program

17,689

—

14,975

Repurchase of common stock

(207,558)

(112,498)

(76,953)

Dividends paid

(126,808)

(127,857)

(101,421)

Net cash provided by (used in) financing activities

(815,358)

(249,275)

(155,996)

Net increase (decrease) in cash and cash equivalents

(192,032)

55,288

54,350

Cash and cash equivalents:

Beginning of period

$

1,598,772

$

1,543,484

$

1,577,160

End of period

$

1,406,740

$

1,598,772

$

1,631,510

Total cash, cash equivalents, and short-term investments

$

1,960,641

$

2,563,415

$

2,823,275