Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Six Months Ended

July 3,
2021

July 4,
2020

Operating Activities

Net income

$ 33,441

$       421

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

   continuing operations:

   Income from discontinued operations, net of income taxes

(77,088)

(67,857)

   Depreciation of property and equipment

8,184

7,711

   Amortization of intangible assets and other assets

22,902

20,486

   Amortization of debt discount and debt issuance costs 

11,822

8,359

   Loss on extinguishment of convertible debt

3,370

3,685

   Stock-based compensation expense

22,620

24,461

   Deferred income taxes

(5,644)

1,177

   Changes in operating assets and liabilities:

      Accounts receivable

(4,377)

7,070

      Inventories

(4,447)

8,021

      Prepaid expenses and other assets

(5,489)

22,976

      Accounts payable

14,711

(769)

      Other current liabilities and income taxes

(10,626)

(15,480)

      Deferred revenue and returns liability

(175)

6,678

      Other non-current liabilities

(3,464)

1,146

Net cash provided by operating activities of continuing operations

5,740

28,085

Investing Activities

Purchases of marketable securities

(80,426)

(199,347)

Sales and maturities of marketable securities

286,649

255,112

Purchases of property and equipment

(10,779)

(9,051)

Purchases of other assets

(578)

(820)

Acquisition of business, net of cash acquired

--

(316,809)

Net cash provided by (used in) investing activities of continuing operations

(270,915)

Financing Activities

Proceeds from issuance of debt

--

845,000

Payments on debt

(140,572)

(597,446)

Repurchases of common stock

(18,982)

(16,287)

Payment of taxes withheld for vested stock awards

(19,732)

(16,756)

Proceeds from the issuance of common stock

8,388

7,757

Net cash provided by (used in) financing activities of continuing operations

222,268

Discontinued Operations

Operating activities

72,674

72,418

Investing activities

(2,018)

(1,343)

Net cash provided by (used in) discontinued operations

70,656

71,075

Increase in cash and cash equivalents

100,364

50,513

Cash and cash equivalents at beginning of period

202,720

227,146

Cash and cash equivalents at end of period

$303,084

$277,659