SYNOPSYS, INC.

Unaudited Condensed Consolidated Statements of Cash Flows ⁽¹⁾

(in thousands)

Three Months Ended

January 31,

2023

2022

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$            268,627

$            313,341

Adjustments to reconcile net income to net cash provided by

operating activities:

Amortization and depreciation

57,294

61,685

Reduction of operating lease right-of-use assets

23,903

21,010

Amortization of capitalized costs to obtain revenue contracts

18,850

16,737

Stock-based compensation

134,227

95,771

Allowance for credit losses

3,700

5,278

Deferred income taxes

(65,495)

(11,952)

Other non-cash

4,535

4,832

Net changes in operating assets and liabilities, net of

acquired assets and liabilities:

Accounts receivable

(237,360)

(466,684)

Inventories

(8,610)

9,155

Prepaid and other current assets

(355)

(303)

Other long-term assets

(54,196)

(11,969)

Accounts payable and accrued liabilities

(144,258)

(223,223)

Operating lease liabilities

(17,629)

(19,477)

Income taxes

50,416

6,555

Deferred revenue

81,102

354,988

Net cash provided by operating activities

114,751

155,744

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sales and maturities of short-term investments

30,971

16,437

Purchases of short-term investments

(28,829)

(17,210)

Proceeds from sales of long-term investments

5,735

582

Purchases of long-term investments

-

(5,000)

Purchases of property and equipment

(43,500)

(41,751)

Acquisitions, net of cash acquired

-

(19,989)

Capitalization of software development costs

(624)

(494)

Other

-

(600)

Net cash used in investing activities

(36,247)

(68,025)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayment of debt

(1,294)

(75,938)

Issuances of common stock

22,338

30,835

Payments for taxes related to net share settlement of equity awards

(92,095)

(96,785)

Purchase of equity forward contract

(45,000)

(40,000)

Purchases of treasury stock

(260,724)

(210,000)

Other

-

(2,709)

Net cash used in financing activities

(376,775)

(394,597)

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

35,675

(1,720)

Net change in cash, cash equivalents and restricted cash

(262,596)

(308,598)

Cash, cash equivalents and restricted cash, beginning of year

1,419,864

1,435,183

Cash, cash equivalents and restricted cash, end of period

$         1,157,268

$         1,126,585

(1) Synopsys' first quarter of fiscal year 2023 and 2022 ended on January 28, 2023 and January 29, 2022, respectively. For presentation
purposes, we refer to the closest calendar month end.