Cadence Design Systems, Inc. 

Condensed Consolidated Statements of Cash Flows

For the Three Months Ended April 2, 2016 and April 4, 2015

(In thousands)

(Unaudited)

Three Months Ended

April 2, 

April 4,

2016

2015

Cash and cash equivalents at beginning of period

$ 616,686

$ 932,161

Cash flows from operating activities:

   Net income

50,562

36,259

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

      Depreciation and amortization

31,231

29,433

      Amortization of debt discount and fees

255

5,945

      Stock-based compensation

24,632

21,861

      Gain on investments, net

(2,617)

(1,270)

      Deferred income taxes

1,623

1,864

      Other non-cash items

209

929

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

         Receivables

11,618

(12,450)

         Inventories

(3,714)

1,682

         Prepaid expenses and other

(10,132)

(10,004)

         Other assets

(3,595)

3,627

         Accounts payable and accrued liabilities

(42,557)

(44,754)

         Deferred revenue

30,710

16,812

         Other long-term liabilities

(5,034)

(3,246)

            Net cash provided by operating activities

83,191

46,688

Cash flows from investing activities:

  Purchases of available-for-sale securities

(20,525)

(33,161)

  Proceeds from the sale of available-for-sale securities

1,000

20,551

  Proceeds from the maturity of available-for-sale securities

19,000

10,350

  Proceeds from the sale of long-term investments

2,583

1,364

  Purchases of property, plant and equipment

(12,116)

(7,520)

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

(3,853)

-

           Net cash used for investing activities

(13,911)

(8,416)

Cash flows from financing activities:

  Proceeds from term loan

300,000

-

  Proceeds from revolving credit facility

50,000

-

  Payment of convertible notes

-

(53,862)

  Payment of convertible notes embedded conversion derivative liability

-

(77,139)

  Proceeds from convertible notes hedges

-

77,139

  Payment of debt issuance costs

(542)

-

  Excess tax benefits from stock-based compensation

-

6,482

  Proceeds from issuance of common stock 

24,200

24,609

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

(15,225)

(14,114)

  Payments for repurchases of common stock

(240,000)

(36,797)

           Net cash provided by (used for) financing activities

118,433

(73,682)

Effect of exchange rate changes on cash and cash equivalents

6,001

(9,015)

Increase (decrease) in cash and cash equivalents 

193,714

(44,425)

Cash and cash equivalents at end of period

$ 810,400

$ 887,736