SKYWORKS SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS See the accompanying notes to the consolidated financial statements. Page 90 Skyworks / Annual Report 2011 Fiscal Years Ended September 30, 2011 October 1, 2010 October 2, 2009 (In thousands) Cash flows from operating activities: Net income ................................................... $226,585 $137,294 $ 94,983 Adjustments to reconcile net income to net cash provided by operating activities: Share-based compensation ..................................... 58,338 40,741 23,466 Depreciation ................................................ 59,788 46,573 44,413 Amortization of intangible assets ............................... 16,742 6,136 6,118 Amortization of discount and deferred financing costs on convertible debt .................................................... 1,434 2,693 5,589 Contribution of common shares to savings and retirement plans ....... 13,718 11,706 8,502 Non-cash restructuring (income) expense ......................... (17) — 955 Deferred income taxes ........................................ 12,370 38,543 (24,866) Excess tax benefit from share-based payments ..................... (12,490) (6,287) — Loss on disposal of assets ..................................... 234 292 411 Inventory write-downs ........................................ — — 3,458 Asset impairments ........................................... — — 5,616 Provision for (recoveries) losses on accounts receivable ............. (220) 703 1,797 Changes in assets and liabilities net of acquired balances: Receivables ................................................ 13,168 (60,901) 29,947 Inventories ................................................. (49,694) (38,818) 15,678 Other current and long-term assets .............................. (1,732) (8,349) (3,932) Accounts payable ............................................ (14,350) 42,869 9,219 Other current and long-term liabilities ........................... 41,944 9,767 (2,549) Net cash provided by operating activities ....................... 365,818 222,962 218,805 Cash flows from investing activities: Capital expenditures ........................................... (100,660) (88,929) (39,172) Payments for acquisitions, net of cash acquired ...................... (249,284) (6,400) (10,356) Net cash used in investing activities ........................... (349,944) (95,329) (49,528) Cash flows from financing activities: Retirement of 2007 Convertible Notes ............................. — (51,107) (51,107) Reacquisition of equity component of 2007 Convertible Notes .......... — (29,602) (15,432) Payments to retire short term line of credit .......................... (50,000) — — Excess tax benefit from share-based payments ....................... 12,490 6,287 — Change in restricted cash ........................................ 5,416 (265) 100 Repurchase of common stock — payroll tax withholdings on equity awards .................................................... (20,092) (4,412) (2,389) Repurchase of common stock — share repurchase program ............ (70,043) — — Net proceeds from exercise of stock options ......................... 63,185 40,502 38,668 Net cash used in financing activities ........................... (59,044) (38,597) (30,160) Net (decrease) increase in cash and cash equivalents .................. (43,170) 89,036 139,117 Cash and cash equivalents at beginning of period ..................... 453,257 364,221 225,104 Cash and cash equivalents at end of period .......................... $410,087 $453,257 $364,221 Supplemental cash flow disclosures: Income taxes paid ............................................. $ 16,094 $ 14,757 $ 1,009 Interest paid .................................................. $ 475 $ 715 $ 2,323