Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Nine Months Ended

September 29,
2018

September 30,
2017

Operating Activities

Net income

$  68,446

$  51,944

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

   Depreciation of property and equipment

11,781

11,068

   Amortization of other intangible assets and other assets

33,322

20,531

   Amortization of debt discount and debt issuance costs 

9,578

6,984

   Stock-based compensation expense

36,893

33,007

   Deferred income taxes

(2,994)

(5,703)

   Changes in operating assets and liabilities:

      Accounts receivable

2,518

(1,587)

      Inventories

5,066

(13,196)

      Prepaid expenses and other assets

6,349

23,506

      Accounts payable

8,675

1,746

      Other current liabilities and income taxes

(23,814)

9,296

      Deferred income, deferred revenue and returns liability

(2,816)

11,039

      Other non-current liabilities

(7,878)

(7,269)

Net cash provided by operating activities

145,126

141,366

Investing Activities

Purchases of available-for-sale investments

(253,973)

(471,938)

Sales and maturities of available-for-sale investments

371,885

143,765

Purchases of property and equipment

(18,267)

(10,494)

Purchases of other assets

(9,088)

(2,622)

Acquisition of business, net of cash acquired

(239,729)

(13,658)

Net cash used in investing activities

(149,172)

(354,947)

Financing Activities

Proceeds from issuance of long-term debt, net

--

389,468

Payments on debt

--

(72,500)

Repurchases of common stock

(24,272)

--

Payment of taxes withheld for vested stock awards

(18,927)

(14,870)

Proceeds from the issuance of common stock

6,585

6,836

Payment of acquisition-related contingent consideration

(3,380)

--

Net cash provided by (used in) financing activities

308,934

Increase (decrease) in cash and cash equivalents

(44,040)

95,353

Cash and cash equivalents at beginning of period

269,366

141,106

Cash and cash equivalents at end of period

$225,326

$236,459