CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended

December 28, 2019

September 28, 2019

December 29, 2018

(in thousands)

Cash flows from operating activities:

Net income (loss)

$                         146,050

$                           140,156

$                         131,892

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Stock-based compensation

24,067

24,671

21,656

Depreciation and amortization

24,087

23,921

26,803

Deferred taxes

(2,684)

453

(5,174)

Loss (gain) from disposal of property, plant and equipment

113

376

2,275

Other adjustments

5,934

27

753

Changes in assets and liabilities:

Accounts receivable

37,005

(20,584)

43,402

Inventories

12,005

10,578

(3,505)

Other assets

(3,377)

(52,443)

6,038

Accounts payable

3,602

1,242

7,664

Income taxes payable

(5,792)

(25,341)

(482)

Accrued salary and related expenses

(1,429)

(22,536)

(375)

Other liabilities

(2,116)

60,750

(6,697)

Net cash provided by (used in) operating activities

237,465

141,270

224,250

Cash flows from investing activities:

Purchase of property, plant and equipment

(13,670)

(20,631)

(12,597)

Proceeds from sales of property, plant and equipment

128

43

1

Proceeds from sale of available-for-sale securities

—

—

18,815

Proceeds from maturity of available-for-sale securities

35,146

42,921

416,720

Purchases of available-for-sale securities

—

—

(23,707)

Purchases of private company investments

(516)

—

(156)

Proceeds from private company investments

—

516

—

Other investing activities

(33)

(35)

—

Net cash provided by (used in) investing activities

21,055

22,814

399,076

Cash flows from financing activities:

Repayment of debt

—

—

(500,000)

Contingent consideration paid

(8,000)

—

—

Net issuance of restricted stock units

(7,623)

(9,943)

(5,916)

Proceeds from stock options exercised

1,338

7,482

7,235

Issuance of common stock under employee stock purchase program

18,535

—

17,689

Repurchase of common stock

(107,957)

(93,552)

(207,558)

Dividends paid

(129,810)

(130,222)

(126,808)

Net cash provided by (used in) financing activities

(233,517)

(226,235)

(815,358)

Net increase (decrease) in cash and cash equivalents

25,003

(62,151)

(192,032)

Cash and cash equivalents:

Beginning of period

$                      1,695,191

$                        1,757,342

$                      1,598,772

End of period

$                      1,720,194

$                        1,695,191

$                      1,406,740

Total cash, cash equivalents, and short-term investments

$                      1,783,200

$                        1,793,367

$                      1,960,641