| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||||||
| (dollars in thousands) | |||||||||||
| Three months ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| 2024 | 2023 | 2023 | |||||||||
| CASH FLOWS - OPERATING ACTIVITIES | |||||||||||
| Net profit for the period | $ | 43,047 | $ | 51,719 | $ | 81,368 | |||||
| Adjustments to reconcile net profit for the period | |||||||||||
| to net cash provided by operating activities: | |||||||||||
| Income and expense items not involving cash flows: | |||||||||||
| Depreciation and amortization * | 59,544 | 65,178 | 62,387 | ||||||||
| Effect of exchange rate differences and fair value adjustment | 227 | (6,852 | ) | (926 | ) | ||||||
| Other expense (income), net | 5,993 | (7,692 | ) | 815 | |||||||
| Changes in assets and liabilities: | |||||||||||
| Trade accounts receivable | (6,716 | ) | (1,861 | ) | 7,413 | ||||||
| Other assets | (13,454 | ) | (6,418 | ) | (1,138 | ) | |||||
| Inventories | (23,703 | ) | 27,310 | (57,420 | ) | ||||||
| Trade accounts payable | 32,559 | 30,023 | 44,542 | ||||||||
| Deferred revenue and customers' advances | (1,931 | ) | (9,902 | ) | (15,470 | ) | |||||
| Other current liabilities | 16,868 | (15,745 | ) | (45,053 | ) | ||||||
| Other long-term liabilities | (2,396 | ) | 338 | (3,791 | ) | ||||||
| Net cash provided by operating activities | 110,038 | 126,098 | 72,727 | ||||||||
| CASH FLOWS - INVESTING ACTIVITIES | |||||||||||
| Investments in property and equipment, net | (98,018 | ) | (136,426 | ) | (105,245 | ) | |||||
| Investments in short-term deposits, marketable securities and other assets, net of sale proceeds | (1,113 | ) | (36,975 | ) | 24,194 | ||||||
| Net cash used in investing activities | (99,131 | ) | (173,401 | ) | (81,051 | ) | |||||
| CASH FLOWS - FINANCING ACTIVITIES | |||||||||||
| Debt repaid, net | (8,409 | ) | (8,950 | ) | (28,796 | ) | |||||
| Proceeds from an investment in a subsidiary | -- | -- | 1,932 | ||||||||
| Net cash used in financing activities | (8,409 | ) | (8,950 | ) | (26,864 | ) | |||||
| EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGE | (2,665 | ) | 2,101 | (637 | ) | ||||||
| DECREASE IN CASH AND CASH EQUIVALENTS | (167 | ) | (54,152 | ) | (35,825 | ) | |||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 260,664 | 314,816 | 340,759 | ||||||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 260,497 | $ | 260,664 | $ | 304,934 | |||||
| * Includes amortization of acquired intangible assets and stock based compensation in the amounts of $7,209, $7,104 and $6,947 | |||||||||||
| for the 3 months periods ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively. | |||||||||||
