Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Three Months Ended

March 31,
2018

April 1,
2017

Operating Activities

Net income

$  26,405

$  15,426

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

   Depreciation of property and equipment

3,704

3,596

   Amortization of other intangible assets and other assets

6,427

6,752

   Amortization of debt discount and debt issuance costs 

3,169

869

   Stock-based compensation expense

12,192

10,486

   Deferred income taxes

(4,780)

(4,059)

   Changes in operating assets and liabilities:

      Accounts receivable

(3,307)

(1,252)

      Inventories

(3,368)

(1,636)

      Prepaid expenses and other assets

(17,169)

6,708

      Accounts payable

13,030

5,565

      Other current liabilities and income taxes

(9,643)

(2,944)

      Deferred income, deferred revenue and returns liability

(2,599)

4,038

      Other non-current liabilities

(1,849)

(1,536)

Net cash provided by operating activities

22,212

42,013

Investing Activities

Purchases of available-for-sale investments

(52,821)

(267,777)

Sales and maturities of available-for-sale investments

128,975

25,595

Purchases of property and equipment

(4,102)

(4,543)

Purchases of other assets

(4,698)

(1,446)

Acquisition of business, net of cash acquired

--

(13,658)

Net cash provided by (used in) investing activities

67,354

Financing Activities

Proceeds from issuance of long-term debt, net

--

390,000

Payments on debt

--

(72,500)

Payment of taxes withheld for vested stock awards

(17,871)

(13,553)

Proceeds from the issuance of common stock

1,211

162

Net cash provided by (used in) financing activities

304,109

Increase in cash and cash equivalents

72,906

84,293

Cash and cash equivalents at beginning of period

269,366

141,106

Cash and cash equivalents at end of period

$342,272

$225,399