CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended

Year Ended

June 27,

March 28,

June 28,

June 27,

June 28,

2015

2015

2014

2015

2014

(in thousands)

Cash flows from operating activities: 

Net income

$           98,659

$           79,433

$           84,793

$         206,038

$         354,810

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

      Stock-based compensation 

17,709

18,586

21,786

79,491

85,452

      Depreciation and amortization 

92,639

71,439

64,391

299,396

244,593

      Deferred taxes 

(32,207)

(15,658)

(9,501)

(72,507)

(32,159)

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

(1,228)

(441)

1,068

419

2,187

      Tax benefit (shortfall) related to stock-based compensation 

(861)

7,635

942

8,155

(68)

      Impairment of long-lived assets

517

5,522

6,447

67,010

11,644

      Impairment of investments in privately-held companies

94

-

6,537

94

10,260

      In-process research and development written-off

-

-

-

8,900

2,580

      Loss (gain) on sale of business

(35,849)

-

-

(35,849)

-

      Impairment of goodwill

-

-

-

84,110

-

      Excess tax benefit from stock-based compensation

(2,372)

(5,997)

(4,897)

(12,549)

(14,192)

      Changes in assets and liabilities: 

          Accounts receivable 

(417)

(19,921)

8,300

16,984

13,340

          Inventories 

10,105

9,194

1,226

2,163

20,672

          Other current assets 

15,338

(156)

26,579

(8,783)

45,557

          Accounts payable 

2,874

477

5,203

(4,201)

(11,255)

          Income taxes payable 

39,217

22,587

9,853

62,350

54,492

          Deferred revenue on shipments to distributors 

(223)

3,447

1,475

4,593

(823)

          All other accrued liabilities 

17,793

5,917

9,882

(12,110)

(10,983)

Net cash provided by (used in) operating activities 

221,788

182,064

234,084

693,704

776,107

Cash flows from investing activities: 

          Purchase of property, plant and equipment

(15,360)

(10,185)

(23,654)

(75,816)

(132,523)

          Proceeds from sales of property, plant and equipment

2,741

1,615

1,627

29,035

5,293

          Proceeds from sale of business

35,550

-

-

35,550

-

          Proceeds from maturity of available-for-sale securities

-

-

-

-

27,000

          Purchases of available-for-sale securities

-

-

(49,953)

(25,142)

(49,953)

          Purchases of privately-held companies securities

-

(200)

-

(200)

-

          Payments in connection to acquisitions

-

-

-

-

(459,256)

          Proceeds from sale of investments in privately-held companies

-

500

-

500

-

Net cash provided by (used in) investing activities 

22,931

(8,270)

(71,980)

(36,073)

(609,439)

Cash flows from financing activities: 

         Excess tax benefit from stock-based compensation

2,372

5,997

4,897

12,549

14,192

         Contingent consideration paid

-

-

-

-

(4,705)

         Dividends paid

(79,558)

(79,419)

(73,626)

(317,909)

(294,175)

         Repayment of notes payable

-

-

(2,430)

(437)

(4,708)

         Issuance of debt

-

-

-

-

497,895

         Debt issuance cost

-

-

-

-

(3,431)

         Repurchase of common stock

(35,963)

(36,774)

(40,744)

(195,088)

(305,314)

         Issuance of ESPP shares under employee stock purchase program

22,298

-

23,713

40,951

42,809

         Net issuance of restricted stock units

(7,428)

(8,369)

(8,922)

(30,657)

(31,384)

         Proceeds from stock options exercised

12,328

31,098

26,232

61,453

69,639

Net cash provided by (used in) financing activities 

(85,951)

(87,467)

(70,880)

(429,138)

(19,182)

Net increase (decrease) in cash and cash equivalents 

158,768

86,327

91,224

228,493

147,486

Cash and cash equivalents: 

          Beginning of period

1,392,197

1,305,870

1,231,248

1,322,472

1,174,986

          End of period

$      1,550,965

$      1,392,197

$      1,322,472

$      1,550,965

$      1,322,472

Total cash, cash equivalents and short-term investments

$      1,626,119

$      1,467,339

$      1,372,425

$      1,626,119

$      1,372,425