SYNOPSYS, INC.

Unaudited Condensed Consolidated Statements of Cash Flows ⁽¹⁾

(in thousands)

Nine Months Ended July 31,

2024

2023

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$          1,140,190

$            871,630

Adjustments to reconcile net income to net cash provided by operating activities:

Amortization and depreciation

180,149

180,033

Reduction of operating lease right-of-use assets

72,196

72,647

Amortization of capitalized costs to obtain revenue contracts

57,071

61,677

Stock-based compensation

540,026

421,949

Allowance for credit losses

14,696

11,937

Gain on sale of strategic investments

(55,077)

—

Amortization of bridge financing costs

18,435

—

Deferred income taxes

(276,840)

(166,061)

Other non-cash

(3,730)

8,649

Net changes in operating assets and liabilities, net of acquired assets and assumed liabilities:

Accounts receivable

59,159

112,511

Inventories

(71,303)

(77,919)

Prepaid and other current assets

(350,652)

8,373

Other long-term assets

(137,159)

(116,487)

Accounts payable and accrued liabilities

17,532

48,574

Operating lease liabilities

(72,254)

(52,914)

Income taxes

(241,952)

123,924

Deferred revenue

(46,276)

(131,310)

Net cash provided by operating activities

844,211

1,377,213

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from maturities and sales of short-term investments

98,465

104,139

Purchases of short-term investments

(97,181)

(102,457)

Proceeds from sales of strategic investments

55,696

7,248

Purchases of strategic investments

(1,240)

(435)

Purchases of property and equipment

(118,772)

(136,520)

Acquisitions, net of cash acquired

(156,947)

(51,324)

Capitalization of software development costs

—

(2,204)

Net cash used in investing activities

(219,979)

(181,553)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayment of debt

(2,607)

(2,603)

Payment of bridge financing and term loan costs

(72,265)

—

Issuances of common stock

143,148

164,841

Payments for taxes related to net share settlement of equity awards

(278,571)

(198,969)

Purchase of equity forward contract

—

(45,000)

Purchases of treasury stock

—

(860,724)

Other

(1,096)

(122)

Net cash used in financing activities

(211,391)

(942,577)

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

5,458

14,997

Net change in cash, cash equivalents and restricted cash

418,299

268,080

Cash, cash equivalents and restricted cash, beginning of year, including cash from discontinued operations

1,441,187

1,419,864

Cash, cash equivalents and restricted cash, end of period, including cash from discontinued operations

1,859,486

1,687,944

Less: Cash, cash equivalents and restricted cash from discontinued operations

17,441

4,835

Cash, cash equivalents and restricted cash from continuing operations

$          1,842,045

$          1,683,109

(1) Synopsys' third quarter of fiscal year 2024 and 2023 ended on August 3, 2024 and July 29, 2023, respectively. For
presentation purposes, we refer to the closest calendar month end. The first quarter of fiscal year 2024 included one
extra week.