SYNOPSYS, INC.

Unaudited Consolidated Statements of Cash Flows (1)

(in thousands)

 Nine Months Ended July 31, 

2017

2016

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$  256,645

$194,129

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

Amortization and depreciation

144,112

157,814

Stock compensation

79,697

72,043

Allowance for doubtful accounts 

1,289

650

(Gain) loss on sale of investments

(1)

(15)

Write-down of long-term investments

1,300

-

Deferred income taxes

(10,960)

2,747

Net changes in operating assets and liabilities, net of acquired assets and liabilities:

Accounts receivable

42,413

77,532

Prepaid and other current assets

(13,636)

(22,941)

Other long-term assets

(33,416)

(8,118)

Accounts payable and accrued liabilities

36,129

(41,749)

Income taxes

(19,169)

(3,314)

Deferred revenue

(34,692)

10,195

Net cash provided by operating activities

449,711

438,973

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sales and maturities of short-term investments

130,529

111,078

Purchases of short-term investments

(137,486)

(126,216)

Proceeds from sales of long-term investments

839

1,785

Purchases of long-term investments

-

(1,002)

Purchases of property and equipment

(50,227)

(48,249)

Cash paid for acquisitions and intangible assets, net of cash acquired

(187,624)

(60,056)

Capitalization of software development costs

(3,130)

(2,959)

Other

2,100

-

Net cash used in investing activities

(244,999)

(125,619)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from credit facilities

270,000

185,000

Repayment of debt

(38,750)

(112,500)

Issuances of common stock

78,718

69,884

Payments for taxes related to net share settlement of equity awards

(35,376)

(25,718)

Purchase of equity forward contract

-

(25,000)

Purchases of treasury stock

(300,000)

(300,000)

Other

(482)

2,713

Net cash used in financing activities

(25,890)

(205,621)

Effect of exchange rate changes on cash and cash equivalents

(456)

2,396

Net change in cash and cash equivalents

178,366

110,129

Cash and cash equivalents, beginning of the year

976,620

836,188

Cash and cash equivalents, end of the period

$1,154,986

$946,317