| MAXLINEAR, INC. | |||||||
| UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (in thousands) | |||||||
| Years Ended | |||||||
| December 31, 2017 | December 31, 2016 | ||||||
| Operating Activities | |||||||
| Net income (loss) | $ | (9,187 | ) | $ | 61,292 | ||
| Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||||||
| Amortization and depreciation | 66,738 | 26,703 | |||||
| Impairment of IPR&D assets | 2,000 | 1,300 | |||||
| Provision for losses on accounts receivable | 133 | 87 | |||||
| Amortization (accretion) of investment premiums (discount), net | (60 | ) | 169 | ||||
| Amortization of inventory step-up | 25,557 | 5,641 | |||||
| Amortization of debt issuance costs | 763 | — | |||||
| Stock-based compensation | 32,668 | 21,765 | |||||
| Deferred income taxes | (31,767 | ) | 101 | ||||
| Loss on disposal of property and equipment | 168 | 366 | |||||
| (Gain) loss on sale of available-for-sale securities | 38 | (50 | ) | ||||
| (Gain) loss on foreign currency | 2,153 | (216 | ) | ||||
| Excess tax benefits on stock-based awards | (8,559 | ) | (8,291 | ) | |||
| Change in fair value of contingent consideration | — | 220 | |||||
| Impairment of leases | — | 388 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (4,377 | ) | (8,175 | ) | |||
| Inventory | (1,788 | ) | 9,846 | ||||
| Prepaid expenses and other assets | 1,272 | 402 | |||||
| Accounts payable, accrued expenses and other current liabilities | (1,918 | ) | 3,249 | ||||
| Accrued compensation | 1,567 | 5,609 | |||||
| Deferred revenue and deferred profit | (1,629 | ) | 1,925 | ||||
| Accrued price protection liability | 6,395 | (4,850 | ) | ||||
| Other long-term liabilities | (5,103 | ) | (164 | ) | |||
| Net cash provided by operating activities | 75,064 | 117,317 | |||||
| Investing Activities | |||||||
| Purchases of property and equipment | (7,468 | ) | (8,512 | ) | |||
| Proceeds from sale of property and equipment | 30 | — | |||||
| Purchases of intangible assets | (5,378 | ) | (390 | ) | |||
| Cash used in acquisition, net of cash acquired | (473,304 | ) | (101,000 | ) | |||
| Purchases of available-for-sale securities | (30,577 | ) | (90,307 | ) | |||
| Maturities of available-for-sale securities | 84,546 | 98,896 | |||||
| Net cash used in investing activities | (432,151 | ) | (101,313 | ) | |||
| Financing Activities | |||||||
| Repurchases of common stock | (334 | ) | (3 | ) | |||
| Net proceeds from issuance of common stock | 12,052 | 6,649 | |||||
| Minimum tax withholding paid on behalf of employees for restricted stock units | (11,543 | ) | (7,316 | ) | |||
| Proceeds from issuance of debt | 416,846 | — | |||||
| Repayment of debt | (70,000 | ) | — | ||||
| Net cash provided by (used in) financing activities | 347,021 | (670 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 1,582 | (394 | ) | ||||
| Increase (decrease) in cash, cash equivalents and restricted cash | (8,484 | ) | 14,940 | ||||
| Cash, cash equivalents and restricted cash at beginning of period | 82,896 | 67,956 | |||||
| Cash, cash equivalents and restricted cash at end of period | $ | 74,412 | $ | 82,896 | |||
