Cadence Design Systems, Inc. 

Condensed Consolidated Statements of Cash Flows

For the Six Months Ended July 1, 2017 and July 2, 2016

(In thousands)

(Unaudited)

Six Months Ended

July 1,

July, 2

2017

2016

Cash and cash equivalents at beginning of period

$ 465,232

$ 616,686

Cash flows from operating activities:

   Net income

137,386

99,897

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

      Depreciation and amortization

58,304

62,759

      Amortization of debt discount and fees

633

527

      Stock-based compensation

57,918

49,988

      Gain on investments, net

(2,083)

(3,265)

      Deferred income taxes

4,813

10,252

      Other non-cash items

2,157

750

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

         Receivables

6,342

(3,532)

         Inventories

2,535

(10,296)

         Prepaid expenses and other

(1,557)

(8,690)

         Other assets

(8,790)

(8,709)

         Accounts payable and accrued liabilities

(21,995)

(14,012)

         Deferred revenue

18,733

(7,412)

         Other long-term liabilities

174

(4,700)

            Net cash provided by operating activities

254,570

163,557

Cash flows from investing activities:

  Purchases of available-for-sale securities

-

(20,525)

  Proceeds from the sale of available-for-sale securities

189

55,168

  Proceeds from the maturity of available-for-sale securities

-

26,115

  Proceeds from the sale of long-term investments

-

2,583

  Purchases of property, plant and equipment

(27,488)

(28,287)

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

-

(41,627)

           Net cash used for investing activities

(27,299)

(6,573)

Cash flows from financing activities:

  Proceeds from term loan

-

300,000

  Proceeds from revolving credit facility

50,000

50,000

  Payment on revolving credit facility

(100,000)

-

  Payment of debt issuance costs

(793)

(622)

  Proceeds from issuance of common stock 

29,967

36,296

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

(25,819)

(17,490)

  Payments for repurchases of common stock

-

(480,100)

           Net cash used for financing activities

(46,645)

(111,916)

Effect of exchange rate changes on cash and cash equivalents

10,140

7,819

Increase in cash and cash equivalents 

190,766

52,887

Cash and cash equivalents at end of period

$ 655,998

$ 669,573