Cadence Design Systems, Inc. 

Condensed Consolidated Statements of Cash Flows

For the Three Months Ended April 1, 2017 and April 2, 2016

(In thousands)

(Unaudited)

Three Months Ended

April 1,

April 2,

2017

2016

Cash and cash equivalents at beginning of period

$                465,232

$                616,686

Cash flows from operating activities:

   Net income

68,259

50,562

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

      Depreciation and amortization

28,894

31,231

      Amortization of debt discount and fees

350

255

      Stock-based compensation

27,436

24,632

      Gain on investments, net

(1,228)

(2,617)

      Deferred income taxes

1,990

1,623

      Other non-cash items

1,359

209

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

         Receivables

(22,475)

11,618

         Inventories

6,000

(3,714)

         Prepaid expenses and other

(3,777)

(10,132)

         Other assets

(3,657)

(3,595)

         Accounts payable and accrued liabilities

(46,159)

(42,557)

         Deferred revenue

34,325

30,710

         Other long-term liabilities

1,113

(5,034)

            Net cash provided by operating activities

92,430

83,191

Cash flows from investing activities:

  Purchases of available-for-sale securities

-

(20,525)

  Proceeds from the sale of available-for-sale securities

107

1,000

  Proceeds from the maturity of available-for-sale securities

-

19,000

  Proceeds from the sale of long-term investments

-

2,583

  Purchases of property, plant and equipment

(14,843)

(12,116)

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

-

(3,853)

           Net cash used for investing activities

(14,736)

(13,911)

Cash flows from financing activities:

  Proceeds from term loan

-

300,000

  Proceeds from revolving credit facility

50,000

50,000

  Payment on revolving credit facility

(50,000)

-

  Payment of debt issuance costs

(793)

(542)

  Proceeds from issuance of common stock 

22,715

24,200

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

(22,470)

(15,225)

  Payments for repurchases of common stock

-

(240,000)

           Net cash provided by (used for) financing activities

(548)

118,433

Effect of exchange rate changes on cash and cash equivalents

1,750

6,001

Increase in cash and cash equivalents 

78,896

193,714

Cash and cash equivalents at end of period

$                544,128

$                810,400