CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended

Year Ended

June 29,

March 30, 

June 30,

June 29,

June 30,

2019

2019

2018

2019

2018

(in thousands)

Cash flows from operating activities:

Net income

$   367,558

$   130,613

$   194,172

$   827,486

$   467,318

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

Stock-based compensation

22,004

22,820

19,753

86,977

78,685

Depreciation and amortization

25,569

27,182

36,083

110,745

144,974

Deferred taxes

26,118

(3,955)

21,458

13,957

27,715

Loss on sale of property, plant and equipment

643

428

423

3,967

995

Impairment of long-lived assets

-

-

-

-

42

Impairment of investment in privately-held companies

(268)

(371)

-

(3)

850

Changes in assets and liabilities:

Accounts receivable

15,615

(14,323)

40,480

21,090

(19,714)

Inventories

26,383

6,123

(9,450)

36,003

(32,776)

Other current assets

(11,875)

3,561

(212)

(14,901)

32,368

Accounts payable

699

(13,372)

6,131

(10,272)

9,560

Income taxes payable

(229,776)

20,401

(163,010)

(176,114)

117,654

Deferred margin on shipments to distributors

-

-

-

-

(14,974)

All other accrued liabilities

(5,203)

27,831

831

(23,095)

6,767

Net cash provided by operating activities

237,467

206,938

146,659

875,840

819,464

Cash flows from investing activities:

Purchases of property, plant and equipment

(30,653)

(21,257)

(12,118)

(82,823)

(65,782)

Proceeds from sales of property, plant and equipment

306

32

62

340

5,823

Proceeds from sales of available-for-sale securities

-

2,939

7,287

30,192

107,291

Proceeds from maturity of available-for-sale securities

103,431

308,529

330,749

1,130,514

753,249

Payment in connection with business acquisition, net of cash acquired

-

-

-

(2,949)

(57,773)

Purchases of available-for-sale securities

-

-

(325,063)

(214,587)

(1,447,354)

Purchases of privately-held companies' securities

(1,500)

(770)

(2,164)

(3,176)

(5,520)

Other investing activities

(60)

(540)

-

(600)

-

Net cash provided by (used in) investing activities

71,524

288,933

856,911

(710,066)

Cash flows from financing activities:

Contingent consideration paid

-

(1,052)

-

(9,052)

-

Net issuance of restricted stock units

(6,663)

(9,582)

(9,148)

(29,689)

(30,310)

Repayment of notes payable

-

-

-

(500,000)

-

Proceeds from stock options exercised

5,414

5,143

1,626

24,400

28,009

Issuance of common stock under employee stock purchase program

22,486

-

21,346

40,175

36,321

Repurchase of common stock

(102,104)

(116,991)

(128,024)

(539,151)

(407,968)

Dividends paid

(125,345)

(125,566)

(117,321)

(505,576)

(438,087)

Net cash provided by (used in) financing activities

(206,212)

(248,048)

(231,521)

(1,518,893)

(812,035)

Net increase (decrease) in cash and cash equivalents

102,779

247,823

(86,109)

213,858

(702,637)

Cash and cash equivalents:

Beginning of period

$ 1,654,563

$ 1,406,740

$ 1,629,593

$ 1,543,484

$ 2,246,121

End of period

$ 1,757,342

$ 1,654,563

$ 1,543,484

$ 1,757,342

$ 1,543,484

Total cash, cash equivalents, and short-term investments

$ 1,898,332

$ 1,898,427

$ 2,626,399

$ 1,898,332

$ 2,626,399