SYNOPSYS, INC.

Unaudited Condensed Consolidated Statements of Cash Flows ⁽¹⁾

(in thousands)

Six Months Ended

April 30,

2023

2022

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$            538,575

$            607,233

Adjustments to reconcile net income to net cash provided by

operating activities:

Amortization and depreciation

116,922

111,962

Reduction of operating lease right-of-use assets

48,073

42,412

Amortization of capitalized costs to obtain revenue contracts

39,588

34,574

Stock-based compensation

277,485

205,832

Allowance for credit losses

6,134

(4,516)

Deferred income taxes

(125,090)

8,944

Other non-cash

4,972

7,479

Net changes in operating assets and liabilities, net of

acquired assets and liabilities:

Accounts receivable

9,289

(169,785)

Inventories

(48,648)

7,725

Prepaid and other current assets

49,437

(2,417)

Other long-term assets

(75,324)

(8,701)

Accounts payable and accrued liabilities

(162,840)

(181,008)

Operating lease liabilities

(31,634)

(43,963)

Income taxes

94,587

(34,246)

Deferred revenue

76,165

324,176

Net cash provided by operating activities

817,691

905,701

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sales and maturities of short-term investments

67,717

43,653

Purchases of short-term investments

(68,738)

(45,158)

Proceeds from sales of long-term investments

7,248

582

Purchases of long-term investments

-

(7,000)

Purchases of property and equipment

(91,368)

(67,367)

Acquisitions, net of cash acquired

(41,324)

(109,060)

Capitalization of software development costs

(1,247)

(1,065)

Other

-

(600)

Net cash used in investing activities

(127,712)

(186,015)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayment of debt

(1,294)

(75,938)

Issuances of common stock

132,808

120,710

Payments for taxes related to net share settlement of equity awards

(116,838)

(101,126)

Purchase of equity forward contract

(45,000)

-

Purchases of treasury stock

(560,724)

(500,000)

Other

(122)

(2,709)

Net cash used in financing activities

(591,170)

(559,063)

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

27,708

(19,955)

Net change in cash, cash equivalents and restricted cash

126,517

140,668

Cash, cash equivalents and restricted cash, beginning of year

1,419,864

1,435,183

Cash, cash equivalents and restricted cash, end of period

$         1,546,381

$         1,575,851

(1) Synopsys' second quarter of fiscal year 2023 and 2022 ended on April 29, 2023 and April 30, 2022, respectively. For presentation
purposes, we refer to the closest calendar month end.