Cadence Design Systems, Inc. 

Condensed Consolidated Statements of Cash Flows

For the Years Ended December 28, 2013 and December 29, 2012

(In thousands)

(Unaudited)

Years Ended

December 28,

December 29,

2013

2012

Cash and cash equivalents at beginning of period

$        726,357

$        601,602

Cash flows from operating activities:

   Net income

164,243

439,948

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

      Depreciation and amortization

98,308

89,217

      Amortization of debt discount and fees

25,384

23,513

      Stock-based compensation

66,285

47,561

      Gain on investments, net

(5,311)

(6,320)

      Deferred income taxes

(2,366)

(240,424)

      Provisions (recoveries) for losses (gains) on receivables, net

(85)

215

      Other non-cash items

4,017

3,315

      Changes in operating assets and liabilities, net of effect of acquired businesses:

         Receivables

(3,609)

45,630

         Inventories

(14,594)

5,245

         Prepaid expenses and other

30,368

(12,426)

         Other assets

(2,530)

(4,902)

         Accounts payable and accrued liabilities

41,727

17,523

         Deferred revenue

2,506

(69,662)

         Other long-term liabilities

(36,738)

(22,439)

            Net cash provided by operating activities

367,605

315,994

Cash flows from investing activities:

  Purchases of available-for-sale securities

(111,702)

(121,154)

  Proceeds from the sale of available-for-sale securities

77,621

18,338

  Proceeds from the maturity of available-for-sale securities

38,706

4,150

  Proceeds from the sale of long-term investments

6,234

74

  Purchases of property, plant and equipment

(44,929)

(35,966)

  Investment in venture capital partnerships and equity investments

-

(250)

  Cash paid in business combinations and asset acquisitions, net of cash acquired

(392,825)

(66,432)

           Net cash used for investing activities

(426,895)

(201,240)

Cash flows from financing activities:

  Proceeds from revolving credit facility

100,000

-

  Payment on revolving credit facility

(100,000)

-

  Payment of convertible notes

(144,639)

-

  Principal payments on receivable financing

(2,526)

(5,776)

  Payment of debt issuance costs

-

(1,372)

  Payment of acquisition-related contingent consideration

(677)

(39)

  Tax effect related to employee stock transactions allocated to equity

9,034

6,061

  Proceeds from issuance of common stock 

42,657

32,687

  Stock received for payment of employee taxes on vesting of restricted stock

(20,140)

(15,728)

           Net cash provided by (used for) financing activities

(116,291)

15,833

Effect of exchange rate changes on cash and cash equivalents

(14,516)

(5,832)

Increase (decrease) in cash and cash equivalents 

(190,097)

124,755

Cash and cash equivalents at end of period

$        536,260

$        726,357