Cadence Design Systems, Inc. 

Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2017 and October 1, 2016

(In thousands)

(Unaudited)

Nine Months Ended

September 30,

October 1,

2017

2016

Cash and cash equivalents at beginning of period

$         465,232

$  616,686

Cash flows from operating activities:

   Net income

218,543

164,609

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

      Depreciation and amortization

86,605

89,726

      Amortization of debt discount and fees

920

792

      Stock-based compensation

94,008

79,986

      Gain on investments, net

(12,502)

(4,070)

      Gain on sale of property, plant and equipment

-

(482)

      Deferred income taxes

212

8,657

      Other non-cash items

3,763

1,869

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

         Receivables

(8,040)

2,873

         Inventories

2,282

(16,339)

         Prepaid expenses and other

(4,627)

(12,135)

         Other assets

(14,469)

(3,822)

         Accounts payable and accrued liabilities

(41,127)

(46,585)

         Deferred revenue

14,245

(10,823)

         Other long-term liabilities

4,071

(6,239)

            Net cash provided by operating activities

343,884

248,017

Cash flows from investing activities:

  Purchases of available-for-sale securities

-

(20,525)

  Proceeds from the sale of available-for-sale securities

421

55,418

  Proceeds from the maturity of available-for-sale securities

-

52,362

  Proceeds from the sale of long-term investments

9,108

2,913

  Proceeds from the sale of property, plant and equipment

-

482

  Purchases of property, plant and equipment

(39,676)

(42,452)

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

(550)

(41,627)

           Net cash provided by (used for) investing activities

(30,697)

6,571

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 

45,419

50,293

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

(54,130)

(35,532)

  Payments for repurchases of common stock

(50,013)

(720,196)

           Net cash used for financing activities

(109,517)

(356,057)

Effect of exchange rate changes on cash and cash equivalents

9,382

9,116

Increase (decrease) in cash and cash equivalents 

213,052

(92,353)

Cash and cash equivalents at end of period

$         678,284

$  524,333