Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Year Ended

December 29,
2018

December 30,
2017

Operating Activities

Net income

$  83,591

$  47,092

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

   Depreciation of property and equipment

15,912

14,766

   Amortization of other intangible assets and other assets

44,102

27,246

   Amortization of debt discount and debt issuance costs 

12,892

10,146

   Stock-based compensation expense

50,077

44,752

   Deferred income taxes

(8,210)

(26,452)

   Changes in operating assets and liabilities:

      Accounts receivable

3,931

3,234

      Inventories

7,660

(13,416)

      Prepaid expenses and other assets

(4,960)

25,266

      Accounts payable

5,952

(468)

      Other current liabilities and income taxes

(21,828)

61,924

      Deferred income, deferred revenue and returns liability

(6,202)

4,453

      Other non-current liabilities

(9,375)

(9,022)

Net cash provided by operating activities

173,542

189,521

Investing Activities

Purchases of available-for-sale investments

(395,904)

(636,363)

Sales and maturities of available-for-sale investments

474,129

294,452

Purchases of property and equipment

(24,462)

(12,252)

Purchases of other assets

(11,063)

(4,960)

Acquisitions of businesses, net of cash acquired

(239,729)

(15,168)

Net cash used in investing activities

(197,029)

(374,291)

Financing Activities

Proceeds from issuance of long-term debt, net

--

389,468

Payments on debt

--

(72,500)

Repurchases of common stock

(39,276)

--

Payment of taxes withheld for vested stock awards

(19,483)

(15,753)

Proceeds from the issuance of common stock

13,303

11,815

Payment of acquisition-related contingent consideration

(3,380)

--

Net cash provided by (used in) financing activities

313,030

Increase (decrease) in cash and cash equivalents

(72,323)

128,260

Cash and cash equivalents at beginning of period

269,366

141,106

Cash and cash equivalents at end of period

$197,043

$269,366