Cadence Design Systems, Inc. 

Condensed Consolidated Statements of Cash Flows

For the Three Months Ended March 29, 2014 and March 30, 2013

(In thousands)

(Unaudited)

Three Months Ended

March 29,

March 30,

2014

2013

Cash and cash equivalents at beginning of period

$  536,260

$  726,357

Cash flows from operating activities:

   Net income

33,070

78,609

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

      Depreciation and amortization

26,017

21,682

      Amortization of debt discount and fees

4,882

6,281

      Stock-based compensation

18,864

13,810

      Gain on investments, net

(3,651)

(1,006)

      Deferred income taxes

2,245

8,695

      Other non-cash items

2,344

(1,007)

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

         Receivables

(108)

23,652

         Inventories

(9,373)

(979)

         Prepaid expenses and other

(9,753)

(1,099)

         Other assets

3,157

4,148

         Accounts payable and accrued liabilities

(29,680)

(11,003)

         Deferred revenue

(5,508)

(16,648)

         Other long-term liabilities

(4,408)

(49,799)

            Net cash provided by operating activities

28,098

75,336

Cash flows from investing activities:

  Purchases of available-for-sale securities

(47,005)

(24,282)

  Proceeds from the sale of available-for-sale securities

32,586

14,985

  Proceeds from the maturity of available-for-sale securities

13,905

8,700

  Proceeds from the sale of long-term investments

-

6,102

  Purchases of property, plant and equipment

(6,252)

(6,569)

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

(27,422)

(757)

           Net cash used for investing activities

(34,188)

(1,821)

Cash flows from financing activities:

  Principal payments on receivable financing

-

(2,526)

  Payment of acquisition-related contingent consideration

(1,835)

(582)

  Tax effect related to employee stock transactions allocated to equity

1,827

5,276

  Proceeds from issuance of common stock 

23,377

21,801

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

(10,981)

(8,775)

  Payments for repurchases of common stock

(12,517)

-

           Net cash provided by (used for) financing activities

(129)

15,194

Effect of exchange rate changes on cash and cash equivalents

2,720

(4,914)

Increase (decrease) in cash and cash equivalents 

(3,499)

83,795

Cash and cash equivalents at end of period

$  532,761

$  810,152