Cadence Design Systems, Inc. 

Condensed Consolidated Statements of Cash Flows

For the Six Months Ended July 2, 2016 and July 4, 2015

(In thousands)

(Unaudited)

Six Months Ended

July 2, 

July 4,

2016

2015

Cash and cash equivalents at beginning of period

$                616,686

$                932,161

Cash flows from operating activities:

   Net income

99,897

94,419

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

      Depreciation and amortization

62,759

58,963

      Amortization of debt discount and fees

527

8,971

      Stock-based compensation

49,988

43,564

      Gain on investments, net

(3,265)

(1,590)

      Deferred income taxes

10,252

7,097

      Other non-cash items

750

1,142

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

         Receivables

(3,532)

(8,078)

         Inventories

(10,296)

(6,243)

         Prepaid expenses and other

(8,690)

(8,036)

         Other assets

(8,709)

1,117

         Accounts payable and accrued liabilities

(14,012)

(20,653)

         Deferred revenue

(7,412)

5,827

         Other long-term liabilities

(4,700)

(8,058)

            Net cash provided by operating activities

163,557

168,442

Cash flows from investing activities:

  Purchases of available-for-sale securities

(20,525)

(59,516)

  Proceeds from the sale of available-for-sale securities

55,168

37,586

  Proceeds from the maturity of available-for-sale securities

26,115

15,600

  Proceeds from the sale of long-term investments

2,583

2,293

  Purchases of property, plant and equipment

(28,287)

(24,067)

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

(41,627)

-

           Net cash used for investing activities

(6,573)

(28,104)

Cash flows from financing activities:

  Proceeds from term loan

300,000

-

  Proceeds from revolving credit facility

50,000

-

  Payment of convertible notes

-

(349,999)

  Payment of convertible notes embedded conversion derivative liability

-

(530,643)

  Proceeds from convertible notes hedges

-

530,643

  Payment of debt issuance costs

(622)

-

  Excess tax benefits from stock-based compensation

-

10,097

  Proceeds from issuance of common stock 

36,296

38,167

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

(17,490)

(15,814)

  Payments for repurchases of common stock

(480,100)

(93,076)

           Net cash used for financing activities

(111,916)

(410,625)

Effect of exchange rate changes on cash and cash equivalents

7,819

(14,023)

Increase (decrease) in cash and cash equivalents 

52,887

(284,310)

Cash and cash equivalents at end of period

$                669,573

$                647,851