CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended

March 31,

December 31,

March 26,

2012

2011

2011

(in thousands)

Cash flows from operating activities: 

Net income

$       54,517

$        88,130

$      136,276

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

      Stock-based compensation 

22,038

23,474

21,228

      Depreciation and amortization 

53,476

51,995

50,684

      Deferred taxes 

(9,942)

(368)

15,733

      In-process research and development

1,600

-

-

      (Gain) Loss from sale of property, plant and equipment

(6,487)

124

(51)

      Gain from discontinued operations

(45,372)

-

-

      Gain from sale of equity investments

-

(1,811)

-

      Tax shortfall (benefit) related to stock-based compensation plans

2,957

(2,581)

33,411

      Impairment of long-lived assets

7,712

-

-

      Excess tax benefit related to stock-based compensation 

(5,172)

(4,242)

(4,229)

      Changes in assets and liabilities: 

          Accounts receivable 

(50,026)

82,760

(11,327)

          Inventories 

12,412

19,045

(17,673)

          Other current assets 

2,332

(1,615)

44,654

          Accounts payable 

27,228

(18,397)

10,952

          Income taxes payable 

98,321

12,619

(70,201)

          Deferred income on shipments to distributors 

(2,407)

(3,444)

1,306

          All other accrued liabilities 

33,312

3,631

45,934

Net cash provided by operating activities 

196,499

249,320

256,697

Cash flows from investing activities: 

          Payments for property, plant and equipment

(70,053)

(68,361)

(29,593)

          Proceeds from sales of property, plant and equipment

13,774

1,709

80

          Acquisitions

-

(12,018)

-

          Discontinued operations

56,607

-

-

          Purchases of equity investments

(1,980)

-

(49,787)

          Purchases of available-for-sale securities

-

(25,108)

-

          Proceeds from sales of equity securities

-

3,225

-

Net cash used in investing activities 

(1,652)

(100,553)

(79,300)

Cash flows from financing activities: 

         Dividends paid

(64,384)

(64,158)

(62,323)

         Repayment of notes payable

-

(4,189)

-

         Repurchase of common stock

(28,970)

(72,486)

(46,689)

         Issuance of ESPP

-

14,906

-

         Proceeds from stock options exercised

20,395

12,013

6,197

         Other

(2,497)

(3,734)

(4,003)

Net cash used in financing activities 

(75,456)

(117,648)

(106,818)

Net increase in cash and cash equivalents 

119,391

31,119

70,579

Cash and cash equivalents: 

          Beginning of period

741,160

710,041

798,344

          End of period

$     860,551

$      741,160

$      868,923

Total cash, cash equivalents, and short-term investments

$     935,956

$      816,535

$      918,847