Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Three Months Ended

April 1,
2017

April 2,
2016

Operating Activities

Net income

$  15,426

$    5,808

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

   Depreciation of property and equipment

3,596

3,310

   Amortization of other intangible assets and other assets

6,752

7,980

   Amortization of debt discount and debt issuance costs 

869

--

   Stock-based compensation expense

10,486

10,344

   Income tax benefit (shortfall) from stock-based awards

--

(1,025)

   Excess income tax benefit from stock-based awards

--

(6)

   Deferred income taxes

(4,059)

(38)

   Changes in operating assets and liabilities:

      Accounts receivable

(1,252)

(990)

      Inventories

(1,636)

4,580

      Prepaid expenses and other assets

6,708

9,159

      Accounts payable

5,565

1,559

      Accrued expenses

(3,889)

6,260

      Deferred income on shipments to distributors

4,038

5,558

      Income taxes

945

494

      Other non-current liabilities

(1,536)

(10,584)

Net cash provided by operating activities

42,013

42,409

Investing Activities

Purchases of available-for-sale investments

(267,777)

(44,547)

Sales and maturities of available-for-sale investments

25,595

46,654

Purchases of property and equipment

(4,543)

(2,303)

Purchases of other assets

(1,446)

(1,107)

Acquisition of business, net of cash acquired

(13,658)

--

Net cash used in investing activities

(261,829)

(1,303)

Financing Activities

Proceeds from issuance of long-term debt, net

390,000

--

Payments on debt

(72,500)

(2,500)

Repurchases of common stock

--

(18,484)

Payment of taxes withheld for vested stock awards

(13,553)

(7,517)

Proceeds from the issuance of common stock

162

--

Net cash provided by (used in) financing activities

304,109

Increase in cash and cash equivalents

84,293

12,605

Cash and cash equivalents at beginning of period

141,106

114,085

Cash and cash equivalents at end of period

$225,399

$126,690