SYNOPSYS, INC.

Unaudited Condensed Consolidated Statements of Cash Flows ⁽¹⁾

(in thousands)

Six Months Ended

April 30,

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income attributed to Synopsys

$            608,468

$            357,423

Adjustments to reconcile net income to net cash provided by

operating activities:

Amortization and depreciation

111,962

100,066

Reduction of operating lease right-of-use assets

42,412

42,711

Amortization of capitalized costs to obtain revenue contracts

34,574

30,475

Stock-based compensation

205,832

163,368

Allowance for credit losses

(4,516)

10,051

Deferred income taxes

8,944

(16,461)

Other non-cash

6,244

(401)

Net changes in operating assets and liabilities, net of

acquired assets and liabilities:

Accounts receivable

(169,785)

157,637

Inventories

7,725

(38,305)

Prepaid and other current assets

(2,417)

(45,972)

Other long-term assets

(8,701)

(97,519)

Accounts payable and accrued liabilities

(181,008)

(96,798)

Operating lease liabilities

(43,963)

(41,105)

Income taxes

(34,246)

(8,386)

Deferred revenue

324,176

183,512

Net cash provided by operating activities

905,701

700,296

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sales and maturities of short-term investments

43,653

-

Purchases of short-term investments

(45,158)

-

Proceeds from sales of long-term investments

582

-

Purchases of long-term investments

(7,000)

-

Purchases of property and equipment

(67,367)

(44,060)

Cash paid for acquisitions, net of cash acquired

(109,060)

(74,626)

Capitalization of software development costs

(1,065)

(1,264)

Other

(600)

(800)

Net cash used in investing activities

(186,015)

(120,750)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayment of debt

(75,938)

(13,194)

Issuances of common stock

120,710

103,203

Payments for taxes related to net share settlement of equity awards

(101,126)

(54,664)

Purchases of treasury stock

(500,000)

(398,082)

Other

(2,709)

(1,000)

Net cash used in financing activities

(559,063)

(363,737)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(19,955)

6,457

Net change in cash, cash equivalents and restricted cash

140,668

222,266

Cash, cash equivalents and restricted cash, beginning of year

1,435,183

1,237,970

Cash, cash equivalents and restricted cash, end of period

$         1,575,851

$         1,460,236

(1) Synopsys' second quarter of fiscal year 2022 and 2021 ended on April 30, 2022 and May 1, 2021, respectively. For presentation purposes, we refer to the closest calendar month end.