Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Year Ended

December 30,
2017

December 31,
2016

Operating Activities

Net income

$  47,092

$  61,494

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

   Depreciation of property and equipment

14,766

13,216

   Amortization of other intangible assets and other assets

27,246

27,715

   Amortization of debt discount and debt issuance costs 

10,146

--

   Stock-based compensation expense

44,752

39,628

   Income tax shortfall from stock-based awards

--

(1,671)

   Deferred income taxes

(26,452)

(4,087)

   Changes in operating assets and liabilities:

      Accounts receivable

3,234

46

      Inventories

(13,416)

(6,093)

      Prepaid expenses and other assets

25,266

(3,568)

      Accounts payable

(468)

263

      Other current liabilities and income taxes

61,924

2,879

      Deferred income on shipments to distributors

4,453

9,713

      Other non-current liabilities

(9,022)

(10,625)

Net cash provided by operating activities

189,521

128,910

Investing Activities

Purchases of available-for-sale investments

(636,363)

(185,231)

Sales and maturities of available-for-sale investments

294,452

161,921

Purchases of property and equipment

(12,252)

(10,927)

Purchases of other assets

(4,960)

(8,801)

Acquisitions of businesses, net of cash acquired

(15,168)

(6,546)

Net cash used in investing activities

(374,291)

(49,584)

Financing Activities

Proceeds from issuance of long-term debt, net

389,468

--

Payments on debt

(72,500)

(5,000)

Repurchases of common stock

--

(40,543)

Payment of taxes withheld for vested stock awards

(15,753)

(10,561)

Proceeds from the issuance of common stock

11,815

13,299

Payment of acquisition-related contingent consideration

--

(9,500)

Net cash provided by (used in) financing activities

313,030

Increase in cash and cash equivalents

128,260

27,021

Cash and cash equivalents at beginning of period

141,106

114,085

Cash and cash equivalents at end of period

$269,366

$141,106