Purchases of intangible assets

[Table of](#i090043fcb1da400aaac214abf3d3ee98_7) [Contents](#i090043fcb1da400aaac214abf3d3ee98_7)CADENCE DESIGN SYSTEMS, INC.CONSOLIDATED STATEMENTS OF CASH FLOWSFor the three fiscal years ended January 1, 2022(In thousands)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | 2021 |  | 2020 |  | 2019 |
| Cash and cash equivalents at beginning of year | $ | 928,432  |  |  | $ | 705,210  |  |  | $ | 533,298  |  |
| Cash flows from operating activities: |  |  |  |  |  |
| Net income | 695,955  |  |  | 590,644  |  |  | 988,979  |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |
| Depreciation and amortization | 142,308  |  |  | 145,653  |  |  | 122,789  |  |
| Amortization of debt discount and fees | 1,219  |  |  | 1,053  |  |  | 1,001  |  |
| Stock-based compensation | 210,090  |  |  | 197,268  |  |  | 181,547  |  |
| (Gain) loss on investments, net | (580) |  |  | 4,954  |  |  | 4,090  |  |
| Deferred income taxes | (43,178) |  |  | (26,117) |  |  | (576,738) |  |
| Provisions for losses on receivables | 525  |  |  | 1,628  |  |  | 632  |  |
| ROU asset amortization and change in operating lease liabilities | (11,606) |  |  | 4,483  |  |  | 562  |  |
| Other non-cash items | 427  |  |  | 773  |  |  | 428  |  |
| Changes in operating assets and liabilities, net of effect of acquired businesses: |  |  |  |  |  |
| Receivables | 2,014  |  |  | (25,934) |  |  | (4,718) |  |
| Inventories | (39,027) |  |  | (25,685) |  |  | (33,024) |  |
| Prepaid expenses and other | (34,342) |  |  | (31,167) |  |  | (11,031) |  |
| Other assets | (7,133) |  |  | (71,606) |  |  | (8,011) |  |
| Accounts payable and accrued liabilities | 67,356  |  |  | 18,394  |  |  | 33,915  |  |
| Deferred revenue | 100,731  |  |  | 110,173  |  |  | 27,498  |  |
| Other long-term liabilities | 16,199  |  |  | 10,408  |  |  | 1,681  |  |
| Net cash provided by operating activities | 1,100,958  |  |  | 904,922  |  |  | 729,600  |  |
| Cash flows from investing activities: |  |  |  |  |  |
| Purchases of non-marketable investments | —  |  |  | —  |  |  | (33,717) |  |
| Proceeds from the sale of non-marketable investments | 128  |  |  | 217  |  |  | 2,952  |  |
| Purchases of property, plant and equipment | (65,298) |  |  | (94,813) |  |  | (74,605) |  |
| Purchases of intangible assets | (1,583) |  |  | —  |  |  | —  |  |
| Cash paid in business combinations and asset acquisitions, net of cash acquired | (226,201) |  |  | (197,562) |  |  | (338) |  |
| Net cash used for investing activities | (292,954) |  |  | (292,158) |  |  | (105,708) |  |
| Cash flows from financing activities: |  |  |  |  |  |
| Proceeds from revolving credit facility | —  |  |  | 350,000  |  |  | 150,000  |  |
| Payment on revolving credit facility | —  |  |  | (350,000) |  |  | (250,000) |  |
| Payment of debt issuance costs | (1,285) |  |  | —  |  |  | —  |  |
| Proceeds from issuance of common stock | 87,772  |  |  | 74,803  |  |  | 52,842  |  |
| Stock received for payment of employee taxes on vesting of restricted stock | (117,982) |  |  | (110,028) |  |  | (90,580) |  |
| Payments for repurchases of common stock | (612,297) |  |  | (380,064) |  |  | (306,148) |  |
| Net cash used for financing activities | (643,792) |  |  | (415,289) |  |  | (443,886) |  |
| Effect of exchange rate changes on cash and cash equivalents | (3,704) |  |  | 25,747  |  |  | (8,094) |  |
| Increase in cash and cash equivalents | 160,508  |  |  | 223,222  |  |  | 171,912  |  |
| Cash and cash equivalents at end of year | $ | 1,088,940  |  |  | $ | 928,432  |  |  | $ | 705,210  |  |
|  |  |  |  |  |  |
| Supplemental cash flow information: |  |  |  |  |  |
| Cash paid for interest | $ | 15,950  |  |  | $ | 19,778  |  |  | $ | 17,842  |  |
| Cash paid for income taxes, net | 146,424  |  |  | 105,917  |  |  | 41,946  |  |

  
  
  
  
  
  
See notes to consolidated financial statements.53
