CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended

December 30, 

September 23, 

December 24, 

2017

2017

2016

(in thousands)

Cash flows from operating activities:

Net income (loss)

$    (75,015)

$     154,533

$    130,477

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Stock-based compensation

21,040

17,287

18,073

Depreciation and amortization

35,813

36,754

42,140

Deferred taxes

(3,188)

12,115

(7,520)

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

(649)

61

3,898

Impairment of long-lived assets

—

42

383

Impairment of of investment in privately-held companies

850

—

—

Changes in assets and liabilities:

Accounts receivable

(2,480)

23,239

29,176

Inventories

(14,125)

1,835

(12,512)

Other current assets

31,459

1,488

(7,583)

Accounts payable

13,643

(9,979)

(11,999)

Income taxes payable

234,264

16,333

17,138

Deferred revenue on shipments to distributors

(16,994)

2,020

383

Accrued salary and related expenses

10,523

(42,105)

(1,651)

All other accrued liabilities

(5,266)

6,082

(7,773)

Net cash provided by (used in) operating activities

229,875

219,705

192,630

Cash flows from investing activities:

Purchase of property, plant and equipment

(22,413)

(14,321)

(15,775)

Proceeds from sales of property, plant and equipment

1,444

1,473

2,224

Proceeds from sale of available-for-sale securities

21,895

18,101

26,454

Proceeds from maturity of available-for-sale securities

118,211

—

—

Purchases of available-for-sale securities

(137,166)

(716,304)

(225,622)

Purchases of privately-held companies' securities

(1,500)

(606)

(326)

Net cash provided by (used in) investing activities

(19,529)

(711,657)

(213,045)

Cash flows from financing activities:

Repayment of notes payable

—

—

(250,000)

Net issuance of restricted stock units

(6,104)

(5,416)

(4,239)

Proceeds from stock options exercised

13,507

5,160

7,155

Issuance of common stock under employee stock purchase program

14,975

—

17,658

Repurchase of common stock

(76,953)

(75,291)

(61,235)

Dividends paid

(101,421)

(101,462)

(93,562)

Net cash provided by (used in) financing activities

(155,996)

(177,009)

(384,223)

Net increase (decrease) in cash and cash equivalents

54,350

(668,961)

(404,638)

Cash and cash equivalents:

Beginning of period

1,577,160

2,246,121

2,092,073

End of period

$ 1,631,510

$  1,577,160

$ 1,687,435

Total cash, cash equivalents, and short-term investments

$ 2,823,275

$  2,773,987

$ 2,086,896