Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Nine Months Ended

September 28,
2019

September 29,
2018

Operating Activities

Net income

$    9,550

$  68,446

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

   Depreciation of property and equipment

12,675

11,781

   Amortization of other intangible assets and other assets

29,891

33,322

   Amortization of debt discount and debt issuance costs 

10,031

9,578

   Stock-based compensation expense

40,042

36,893

   Deferred income taxes

24,531

(2,994)

   Changes in operating assets and liabilities:

      Accounts receivable

(2,975)

2,518

      Inventories

3,512

5,066

      Prepaid expenses and other assets

23,401

6,349

      Accounts payable

6,419

8,675

      Other current liabilities and income taxes

(15,602)

(23,814)

      Deferred income, deferred revenue and returns liability

(667)

(2,816)

      Other non-current liabilities

(5,957)

(7,878)

Net cash provided by operating activities

134,851

145,126

Investing Activities

Purchases of available-for-sale investments

(306,645)

(253,973)

Sales and maturities of available-for-sale investments

268,140

371,885

Purchases of property and equipment

(12,773)

(18,267)

Purchases of other assets

(7,132)

(9,088)

Acquisition of business, net of cash acquired

--

(239,729)

Net cash used in investing activities

(58,410)

(149,172)

Financing Activities

Payment of debt issuance costs

(1,127)

--

Repurchases of common stock

(26,716)

(24,272)

Payment of taxes withheld for vested stock awards

(15,693)

(18,927)

Proceeds from the issuance of common stock

7,108

6,585

Payment of acquisition-related contingent consideration

--

(3,380)

Net cash used in financing activities

(36,428)

(39,994)

Increase (decrease) in cash and cash equivalents

40,013

(44,040)

Cash and cash equivalents at beginning of period

197,043

269,366

Cash and cash equivalents at end of period

$237,056

$225,326