Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Year Ended

January 1,
2022

January 2,
2021

Operating Activities

Net income

$2,117,399

$   12,531

Adjustments to reconcile net income to cash provided by (used in)

   operating activities of continuing operations:

   Income from discontinued operations, net of income taxes

(2,175,273)

(128,016)

   Depreciation of property and equipment

18,051

16,267

   Amortization of other intangible assets

44,505

42,569

   Amortization of debt discount and debt issuance costs 

22,767

21,433

   Loss on extinguishment of convertible debt

3,370

4,060

   Stock-based compensation expense

56,842

49,454

   Equity-method earnings

(13,728)

(2,116)

   Deferred income taxes

(3,414)

(6,533)

   Changes in operating assets and liabilities:

      Accounts receivable

(3,144)

(17,612)

      Inventories

(1,510)

9,148

      Prepaid expenses and other assets

44,664

(50,664)

      Accounts payable

(7,704)

15,263

      Other current liabilities and income taxes

2,109

3,215

      Deferred revenue and returns liability

863

(6,694)

      Other non-current liabilities

(14,599)

28,856

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

91,198

(8,839)

Investing Activities

Purchases of marketable securities

(1,541,971)

(519,567)

Sales and maturities of marketable securities

1,095,041

497,357

Purchases of property and equipment

(28,577)

(18,088)

Purchases of other assets

(1,158)

(1,210)

Acquisitions of businesses, net of cash acquired

--

(316,809)

Net cash used in investing activities of continuing operations

(476,665)

(358,317)

Financing Activities

Proceeds from issuance of debt

--

845,000

Payments on debt

(140,572)

(624,737)

Repurchases of common stock

(1,150,044)

(16,287)

Payment of taxes withheld for vested stock awards

(22,239)

(18,124)

Proceeds from the issuance of common stock

14,183

15,015

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

(1,298,672)

200,867

Discontinued Operations

Operating activities

(191,642)

144,557

Investing activities

2,747,684

(2,694)

Net cash provided by discontinued operations

2,556,042

141,863

Increase (decrease) in cash and cash equivalents

871,903

(24,426)

Cash and cash equivalents at beginning of period

202,720

227,146

Cash and cash equivalents at end of period

$1,074,623

$202,720