Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Nine Months Ended

October 3,
2020

September 28,
2019

Operating Activities

Net income

$    3,583

$    9,550

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

   Depreciation of property and equipment

12,896

12,675

   Amortization of other intangible assets and other assets

32,741

29,891

   Amortization of debt discount and debt issuance costs 

14,946

10,031

   Loss on extinguishment of convertible debt

3,977

--

   Stock-based compensation expense

44,329

40,042

   Deferred income taxes

(7,382)

24,531

   Changes in operating assets and liabilities:

      Accounts receivable

(2,902)

(2,975)

      Inventories

11,283

3,512

      Prepaid expenses and other assets

(6,162)

23,401

      Accounts payable

6,103

6,419

      Other current liabilities and income taxes

3,648

(15,602)

      Deferred revenue and returns liability

2,643

(667)

      Other non-current liabilities

7,260

(5,957)

Net cash provided by operating activities

126,963

134,851

Investing Activities

Purchases of available-for-sale investments

(418,227)

(306,645)

Sales and maturities of available-for-sale investments

427,235

268,140

Purchases of property and equipment

(15,247)

(12,773)

Purchases of other assets

(1,280)

(7,132)

Acquisition of business, net of cash acquired

(316,809)

--

Net cash used in investing activities

(324,328)

(58,410)

Financing Activities

Proceeds from issuance of debt

845,000

--

Payments on debt

(618,729)

(1,127)

Repurchases of common stock

(16,287)

(26,716)

Payment of taxes withheld for vested stock awards

(17,562)

(15,693)

Proceeds from the issuance of common stock

8,155

7,108

Net cash provided by (used in) financing activities

200,577

Increase in cash and cash equivalents

3,212

40,013

Cash and cash equivalents at beginning of period

227,146

197,043

Cash and cash equivalents at end of period

$230,358

$237,056