Cadence Design Systems, Inc. 

Condensed Consolidated Statements of Cash Flows

For the Years Ended January 3, 2015 and December 28, 2013

(In thousands)

(Unaudited)

Years Ended

January 3,

December 28,

2015

2013

Cash and cash equivalents at beginning of year

$      536,260

$    726,357

Cash flows from operating activities:

   Net income

158,898

164,243

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

      Depreciation and amortization

115,634

98,308

      Amortization of debt discount and fees

20,529

25,384

      Stock-based compensation

83,792

66,285

      Gain on investments, net

(4,707)

(5,311)

      Deferred income taxes

12,478

(2,366)

      Other non-cash items

6,854

3,932

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

         Receivables

(17,925)

(3,609)

         Inventories

(11,708)

(14,594)

         Prepaid expenses and other

(2,501)

30,368

         Other assets

(42,181)

(2,530)

         Accounts payable and accrued liabilities

3,856

41,727

         Deferred revenue

(11,860)

2,506

         Other long-term liabilities

5,563

(36,738)

            Net cash provided by operating activities

316,722

367,605

Cash flows from investing activities:

  Purchases of available-for-sale securities

(124,165)

(111,702)

  Proceeds from the sale of available-for-sale securities

85,384

77,621

  Proceeds from the maturity of available-for-sale securities

46,612

38,706

  Proceeds from the sale of long-term investments

1,085

6,234

  Purchases of property, plant and equipment

(39,810)

(44,929)

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

(167,121)

(392,825)

           Net cash used for investing activities

(198,015)

(426,895)

Cash flows from financing activities:

  Proceeds from issuance of debt

348,649

-

  Proceeds from revolving credit facility

100,000

100,000

  Payment on revolving credit facility

(100,000)

(100,000)

  Payment of convertible notes

(1)

(144,639)

  Payment of convertible notes embedded conversion derivative liability

(1)

-

  Proceeds from convertible notes hedges

1

-

  Principal payments on receivable financing

-

(2,526)

  Payment of debt issuance costs

(6,500)

-

  Payment of acquisition-related contingent consideration

(1,835)

(677)

  Tax effect related to employee stock transactions allocated to equity

7,583

9,034

  Proceeds from issuance of common stock 

65,913

42,657

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

(24,727)

(20,140)

  Payments for repurchases of common stock

(100,117)

-

           Net cash provided by (used for) financing activities

288,965

(116,291)

Effect of exchange rate changes on cash and cash equivalents

(11,771)

(14,516)

Increase (decrease) in cash and cash equivalents 

395,901

(190,097)

Cash and cash equivalents at end of year

$      932,161

$    536,260