Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Cadence Design Systems Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019	Dec 29, 2018
Net income	848,952)	695,955)	590,644)	988,979)	345,777)
Depreciation and amortization	132,088)	142,308)	145,653)	122,789)	118,721)
Amortization of debt discount and fees	1,134)	1,219)	1,053)	1,001)	1,196)
Stock-based compensation	270,439)	210,090)	197,268)	181,547)	167,715)
(Gain) loss on investments, net	5,425)	(580)	4,954)	4,090)	(1,261)
Deferred income taxes	(107,606)	(43,178)	(26,117)	(576,738)	(11,676)
Provisions for losses on receivables	204)	525)	1,628)	632)	5,102)
ROU asset amortization and change in operating lease liabilities	3,342)	(11,606)	4,483)	562)	—)
Other non-cash items	371)	427)	773)	428)	1,136)
Receivables	(138,471)	2,014)	(25,934)	(4,718)	(87,083)
Inventories	(23,073)	(39,027)	(25,685)	(33,024)	752)
Prepaid expenses and other	(38,927)	(34,342)	(31,167)	(11,031)	(19,622)
Other assets	(933)	(7,133)	(71,606)	(8,011)	(16,077)
Accounts payable and accrued liabilities	113,945)	67,356)	18,394)	33,915)	1,553)
Deferred revenue	131,462)	100,731)	110,173)	27,498)	100,696)
Other long-term liabilities	43,542)	16,199)	10,408)	1,681)	(2,178)
Changes in operating assets and liabilities, net of effect of acquired businesses	87,545)	105,798)	(15,417)	6,310)	(21,959)
Adjustments to reconcile net income to net cash provided by operating activities	392,942)	405,003)	314,278)	(259,379)	258,974)
Net cash provided by operating activities	1,241,894)	1,100,958)	904,922)	729,600)	604,751)
Purchases of non-marketable investments	(1,000)	—)	—)	(33,717)	(115,839)
Proceeds from the sale of non-marketable investments	366)	128)	217)	2,952)	3,497)
Purchases of property, plant and equipment	(123,215)	(65,298)	(94,813)	(74,605)	(61,503)
Purchases of intangible assets	(1,000)	(1,583)	—)	—)	—)
Cash paid in business combinations and asset acquisitions, net of cash acquired	(613,785)	(226,201)	(197,562)	(338)	—)
Net cash used for investing activities	(738,634)	(292,954)	(292,158)	(105,708)	(173,845)
Proceeds from revolving credit facility	585,000)	—)	350,000)	150,000)	100,000)
Payments on revolving credit facility	(485,000)	—)	(350,000)	(250,000)	(85,000)
Proceeds from term loan	300,000)	—)	—)	—)	—)
Principal payments on term loan	—)	—)	—)	—)	(300,000)
Payment of debt issuance costs	(425)	(1,285)	—)	—)	—)
Proceeds from issuance of common stock	105,331)	87,772)	74,803)	52,842)	40,908)
Stock received for payment of employee taxes on vesting of restricted stock	(111,864)	(117,982)	(110,028)	(90,580)	(69,921)
Payments for repurchases of common stock	(1,050,091)	(612,297)	(380,064)	(306,148)	(250,059)
Change in book overdraft	—)	—)	—)	—)	(3,867)
Net cash used for financing activities	(657,049)	(643,792)	(415,289)	(443,886)	(567,939)
Effect of exchange rate changes on cash and cash equivalents	(52,826)	(3,704)	25,747)	(8,094)	(17,756)
Increase (decrease) in cash and cash equivalents	(206,615)	160,508)	223,222)	171,912)	(154,789)
Cash and cash equivalents at beginning of year	1,088,940)	928,432)	705,210)	533,298)	688,087)
Cash and cash equivalents at end of year	882,325)	1,088,940)	928,432)	705,210)	533,298)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29).

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Cash flow statement item	Description	The company
Net cash provided by operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	Cadence Design Systems Inc. net cash provided by operating activities increased from 2020 to 2021 and from 2021 to 2022.
Net cash used for investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	Cadence Design Systems Inc. net cash used for investing activities decreased from 2020 to 2021 and from 2021 to 2022.
Net cash used for financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	Cadence Design Systems Inc. net cash used for financing activities decreased from 2020 to 2021 and from 2021 to 2022.

Cadence Design Systems Inc. (NASDAQ:CDNS)

Cash Flow Statement