Cadence Design Systems, Inc. 

Condensed Consolidated Statements of Cash Flows

For the Six Months Ended June 28, 2014 and June 29, 2013

(In thousands)

(Unaudited)

Six Months Ended

June 28,

June 29,

2014

2013

Cash and cash equivalents at beginning of period

$  536,260

$  726,357

Cash flows from operating activities:

   Net income

56,333

88,038

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

      Depreciation and amortization

53,609

46,977

      Amortization of debt discount and fees

9,814

12,625

      Stock-based compensation

37,941

28,921

      Gain on investments, net

(5,128)

(2,477)

      Deferred income taxes

4,778

(4,413)

      Other non-cash items

3,694

433

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

         Receivables

5,336

8,719

         Inventories

(12,266)

(2,672)

         Prepaid expenses and other

(13,602)

26,516

         Other assets

(1,273)

(45,274)

         Accounts payable and accrued liabilities

(13,550)

10,023

         Deferred revenue

(23,740)

(24,359)

         Other long-term liabilities

(4,983)

7,174

            Net cash provided by operating activities

96,963

150,231

Cash flows from investing activities:

  Purchases of available-for-sale securities

(77,490)

(63,705)

  Proceeds from the sale of available-for-sale securities

54,601

46,857

  Proceeds from the maturity of available-for-sale securities

23,799

15,716

  Proceeds from the sale of long-term investments

-

6,102

  Purchases of property, plant and equipment

(17,715)

(23,739)

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

(163,685)

(392,139)

           Net cash used for investing activities

(180,490)

(410,908)

Cash flows from financing activities:

  Proceeds from revolving credit facility

100,000

100,000

  Principal payments on receivable financing

-

(2,526)

  Payment of acquisition-related contingent consideration

(1,835)

(582)

  Tax effect related to employee stock transactions allocated to equity

2,642

7,300

  Proceeds from issuance of common stock 

36,482

30,227

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

(12,292)

(11,758)

  Payments for repurchases of common stock

(25,032)

-

           Net cash provided by financing activities

99,965

122,661

Effect of exchange rate changes on cash and cash equivalents

4,718

(11,108)

Increase (decrease) in cash and cash equivalents 

21,156

(149,124)

Cash and cash equivalents at end of period

$  557,416

$  577,233