NATIONAL SEMICONDUCTOR CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Six Months Ended ---------- Nov. 29, Nov. 23, 2009 2008 ---- ---- Cash flows from operating activities: Net income $76.8 $115.9 Adjustments to reconcile net income with net cash provided by operating activities: Depreciation and amortization 47.8 61.5 Share-based compensation 32.7 35.5 Excess tax benefit from share-based payment arrangements (0.1) (4.3) Tax (expense) benefit associated with stock options (4.4) 6.5 (Gain) loss on investments (5.3) 15.1 Non-cash restructuring recovery (5.7) (0.1) Loss (gain) on disposal of equipment 0.8 (0.5) Other, net 1.2 0.4 Changes in certain assets and liabilities, net: Receivables (17.5) 8.9 Inventories 17.9 (5.7) Other current assets (5.0) 1.7 Accounts payable and accrued expenses 15.8 (4.9) Current and deferred income taxes (10.7) 48.8 Other non-current liabilities 15.3 (24.8) ---- ----- Net cash provided by operating activities 159.6 254.0 ----- ----- Cash flows from investing activities: Purchase of property, plant and equipment (14.4) (55.1) Proceeds from sale of property, plant and equipment 0.1 0.6 Business acquisition, net of cash acquired (4.8) - Funding of benefit plan (1.1) (5.5) Redemption and net realized losses of benefit plan 1.3 5.0 Other, net (1.4) - ---- --- Net cash used in investing activities (20.3) (55.0) ----- ----- Cash flows from financing activities: Repayment of bank borrowing (31.2) (31.4) Payment on software license obligations (3.2) - Excess tax benefit from share-based payment arrangements 0.1 4.3 Minimum tax withholding paid on behalf of employees for net share settlements (1.6) (0.2) Issuance of common stock 56.7 33.5 Cash payments in connection with stock option exchange program (1.1) - Purchase and retirement of treasury stock - (128.4) Cash dividends declared and paid (37.6) (27.7) ----- ----- Net cash used in financing activities (17.9) (149.9) ----- ------ Net change in cash and cash equivalents 121.4 49.1 Cash and cash equivalents at beginning of period 700.3 736.8 ----- ----- Cash and cash equivalents at end of period $821.7 $785.9 ====== ======