CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended

March 29,

December 28,

March 30,

2014

2013

2013

(in thousands)

Cash flows from operating activities: 

    Net income

$             122,544

$         44,353

$      131,388

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

        Stock-based compensation 

22,057

22,869

19,613

        Depreciation and amortization 

64,665

64,404

50,391

        Deferred taxes 

(36,482)

(11,705)

18,392

        In-process research and development written-off

2,580

-

2,800

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

818

265

(2,397)

        Tax benefit (shortfall) related to stock-based compensation 

3,204

(726)

1,317

        Impairment of long-lived assets

-

5,197

-

        Impairment of investments in privately-held companies

3,723

-

-

        Excess tax benefit from stock-based compensation 

(5,139)

(2,459)

(4,297)

        Loss (gain) on sale of discontinued operations

-

-

(3,285)

        Changes in assets and liabilities: 

            Accounts receivable 

(15,566)

33,056

(35,501)

            Inventories 

7,717

14,030

(12,143)

            Other current assets 

7,194

30,330

(14,653)

            Accounts payable 

(4,044)

(3,252)

10,453

            Income taxes payable 

14,244

19,002

9,100

            Deferred revenue on shipments to distributors 

(1,283)

(1,637)

489

            All other accrued liabilities 

25,466

20,704

40,026

Net cash provided by (used in) operating activities 

211,698

234,431

211,693

Cash flows from investing activities: 

        Purchase of property, plant and equipment

(26,407)

(46,133)

(54,945)

        Proceeds from sales of property, plant and equipment

618

-

10,199

        Payments in connection with business acquisition, net of cash acquired

(5,750)

(453,506)

-

        Proceeds from maturity of available-for-sale securities

-

27,000

50,000

Net cash provided by (used in) investing activities 

(31,539)

(472,639)

5,254

Cash flows from financing activities: 

        Excess tax benefit from stock-based compensation

5,139

2,459

4,297

        Contingent consideration paid

(104)

(4,601)

-

        Dividends paid

(73,481)

(73,324)

(70,421)

        Repayment of notes payable

(439)

(1,839)

(903)

        Issuance of debt

-

497,795

491,145

        Debt issuance cost

-

(3,431)

-

        Repurchase of common stock

(51,083)

(59,101)

(66,330)

        Issuance of ESPP shares under employee stock purchase program 

-

19,096

-

        Net issuance of restricted stock units

(8,390)

(7,106)

(7,941)

        Proceeds from stock options exercised

29,538

8,622

26,079

Net cash provided by (used in) financing activities 

(98,820)

378,570

375,926

Net increase (decrease) in cash and cash equivalents 

81,339

140,362

592,873

Cash and cash equivalents: 

          Beginning of period

1,149,909

1,009,547

955,107

          End of period

$          1,231,248

$    1,149,909

$   1,547,980

Total cash, cash equivalents, and short-term investments

$          1,231,248

$    1,149,909

$   1,573,075