Cadence Design Systems, Inc. 

Condensed Consolidated Statements of Cash Flows

For the Six Months Ended July 4, 2015 and June 28, 2014

(In thousands)

(Unaudited)

Six Months Ended

July 4,

June 28,

2015

2014

Cash and cash equivalents at beginning of period

$    932,161

$    536,260

Cash flows from operating activities:

   Net income

94,419

56,333

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

      Depreciation and amortization

58,963

53,609

      Amortization of debt discount and fees

8,971

9,814

      Stock-based compensation

43,564

37,941

      Gain on investments, net

(1,590)

(5,128)

      Deferred income taxes

7,097

4,778

      Other non-cash items

1,142

3,694

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

         Receivables

(8,078)

5,336

         Inventories

(6,243)

(12,266)

         Prepaid expenses and other

(8,036)

(13,602)

         Other assets

1,117

(1,273)

         Accounts payable and accrued liabilities

(20,653)

(13,550)

         Deferred revenue

5,827

(23,740)

         Other long-term liabilities

(8,058)

(4,983)

            Net cash provided by operating activities

168,442

96,963

Cash flows from investing activities:

  Purchases of available-for-sale securities

(59,516)

(77,490)

  Proceeds from the sale of available-for-sale securities

37,586

54,601

  Proceeds from the maturity of available-for-sale securities

15,600

23,799

  Proceeds from the sale of long-term investments

2,293

-

  Purchases of property, plant and equipment

(24,067)

(17,715)

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

-

(163,685)

           Net cash used for investing activities

(28,104)

(180,490)

Cash flows from financing activities:

  Proceeds from revolving credit facility

-

100,000

  Payment of convertible notes

(349,999)

-

  Payment of convertible notes embedded conversion derivative liability

(530,643)

-

  Proceeds from convertible notes hedges

530,643

-

  Payment of acquisition-related contingent consideration

-

(1,835)

  Excess tax benefits from stock-based compensation

10,097

2,642

  Proceeds from issuance of common stock 

38,167

36,482

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

(15,814)

(12,292)

  Payments for repurchases of common stock

(93,076)

(25,032)

           Net cash provided by (used for) financing activities

(410,625)

99,965

Effect of exchange rate changes on cash and cash equivalents

(14,023)

4,718

Increase (decrease) in cash and cash equivalents 

(284,310)

21,156

Cash and cash equivalents at end of period

$    647,851

$    557,416