Cadence Design Systems, Inc. 

Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended September 27, 2014 and September 28, 2013

(In thousands)

(Unaudited)

Nine Months Ended

September 27,

September 28,

2014

2013

Cash and cash equivalents at beginning of period

$         536,260

$         726,357

Cash flows from operating activities:

   Net income

93,868

126,538

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

      Depreciation and amortization

84,296

72,681

      Amortization of debt discount and fees

14,863

19,102

      Stock-based compensation

60,818

47,487

      Gain on investments, net

(3,202)

(4,035)

      Deferred income taxes

18,963

(6,425)

      Other non-cash items

6,221

2,183

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

         Receivables

(1,858)

2,192

         Inventories

(15,796)

(10,005)

         Prepaid expenses and other

(8)

26,927

         Other assets

(38,241)

(46,651)

         Accounts payable and accrued liabilities

(15,623)

18,277

         Deferred revenue

(27,231)

(5,474)

         Other long-term liabilities

7,585

5,644

            Net cash provided by operating activities

184,655

248,441

Cash flows from investing activities:

  Purchases of available-for-sale securities

(98,392)

(84,000)

  Proceeds from the sale of available-for-sale securities

69,912

59,014

  Proceeds from the maturity of available-for-sale securities

32,402

30,506

  Proceeds from the sale of long-term investments

-

6,200

  Purchases of property, plant and equipment

(27,958)

(35,950)

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

(167,248)

(392,825)

           Net cash used for investing activities

(191,284)

(417,055)

Cash flows from financing activities:

  Proceeds from revolving credit facility

100,000

100,000

  Payment on revolving credit facility

(100,000)

(50,000)

  Payment of convertible notes

(1)

(78)

  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

(322)

-

  Payment of acquisition-related contingent consideration

(1,835)

(677)

  Tax effect related to employee stock transactions allocated to equity

5,786

9,494

  Proceeds from issuance of common stock 

54,717

40,691

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

(23,648)

(19,461)

  Payments for repurchases of common stock

(62,575)

-

           Net cash provided by (used for) financing activities

(27,878)

77,443

Effect of exchange rate changes on cash and cash equivalents

(1,270)

(14,783)

Decrease in cash and cash equivalents 

(35,777)

(105,954)

Cash and cash equivalents at end of period

$        500,483

$        620,403