Intersil Corporation

Condensed Consolidated Statements of Cash Flows

Unaudited

(In thousands)

Quarter Ended

Jul. 1

Apr. 1,

Jul. 3

2016

2016

2015

Q2 2016

Q1 2016

Q2 2015

Operating activities:

Net income

$             1,389

$      11,751

$      37,724

   Depreciation

3,467

3,579

3,607

   Amortization of purchased intangibles

2,867

3,528

4,026

   Equity-based compensation

8,122

6,482

6,689

   Asset impairment charges

9,998

-

-

   Deferred income taxes

(1,635)

-

(5,823)

   Other

(847)

21

(64)

   Net changes in operating assets and liabilities

3,835

(7,691)

(21,933)

    Net cash flows provided by operating activities

27,196

17,670

24,226

Investing activities:

   Proceeds from investments

42

28

-

   Net capital expenditures

(2,004)

(2,716)

(4,997)

    Net cash flows used in investing activities

(1,962)

(2,688)

(4,997)

Financing activities:

   Proceeds from (tax payments for) equity-based awards, net

(3,168)

6,417

1,851

   Dividends paid

(18,878)

(15,987)

(17,196)

     Net cash flows used in financing activities

(22,046)

(9,570)

(15,345)

Effect of exchange rates on cash and cash equivalents

70

791

178

     Net change in cash and cash equivalents

3,258

6,203

4,062

Cash and cash equivalents as of the beginning of the period

253,606

247,403

220,900

    Cash and cash equivalents as of the end of the period

$         256,864

$    253,606

$    224,962