MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)
(Unaudited)

Three Months

Ended 

Year Ended

December 31,
2022

December 31,
2022

December 31,
2021

Cash flows from operating activities

Net income (loss)   

$           2,971

$      (8,036)

$       56,708

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities

Depreciation and amortization     

3,775

15,000

14,239

Provision for severance benefits  

1,126

6,289

8,282

Amortization of debt issuance costs and original issue discount 

—

—

261

Loss (gain) on foreign currency, net            

(46,606)

19,729

32,432

Provision for inventory reserves 

1,844

9,574

2,244

Stock-based compensation          

1,550

6,037

7,704

Deferred income tax assets

56

278

918

Other, net     

255

664

(613)

Changes in operating assets and liabilities

Accounts receivable, net              

2,471

10,276

7,505

Inventories   

582

(12,626)

(5,939)

Other receivables         

1,031

18,146

(21,538)

Other current assets     

9,967

(4,150)

12,397

Accounts payable        

(1,533)

(16,325)

(11,437)

Other accounts payable

(3,195)

(9,410)

(7,798 )

Accrued expenses        

(13,094)

(7,228)

4,637

Accrued income taxes  

3,083

(8,400)

(1)

Deferred revenue

(47)

(1,261)

(131)

Other current liabilities

(276)

(645)

1,445

Other non-current liabilities         

226

749

(1,398 )

Contributions to severance insurance deposit accounts

(7,662)

(7,899)

(5,688)

Payment of severance benefits     

(1,831)

(6,012)

(6,679)

Other, net     

228

415

193

Net cash provided by (used in) operating activities     

(45,079)

5,165

87,743

Cash flows from investing activities

Proceeds from settlement of hedge collateral               

12,427

15,232

5,214

Payment of hedge collateral

—

(15,282)

(3,349 )

Proceeds from disposal of property, plant and equipment

—

550

1,446

Purchase of property, plant and equipment  

(11,582)

(23,394)

(32,212 )

Payment for intellectual property registration              

(89)

(390)

(614 )

Collection of guarantee deposits  

—

—

3,192

Payment of guarantee deposits    

(306)

(2,381)

(5,001 )

Other, net     

495

737

(114 )

Net cash provided by (used in) investing activities

945

(24,928)

(31,438 )

Cash flows from financing activities

Proceeds from exercise of stock options     

—

1,786

4,279

Acquisition of treasury stock       

(8,895)

(13,960)

(1,653 )

Acquisition of stock under accelerated stock repurchase agreement

—

—

(20,073)

Payment under accelerated stock repurchase agreement

—

—

(17,427)

Repayment of financing related to water treatment facility arrangement      

(119)

(500)

(563 )

Others

(20)

(70)

(107)

Net cash used in financing activities       

(9,034)

(12,744)

(35,544 )

Effect of exchange rates on cash and cash equivalents           

27,814

(21,563)

(21,154 )

Net decrease in cash and cash equivalents              

(25,354)

(54,070)

(393 )

Cash and cash equivalents

Beginning of the period          

250,831

279,547

279,940

End of the period    

$       225,477

$    225,477

$   279,547