SYNOPSYS, INC.

Unaudited Consolidated Statements of Cash Flows ⁽¹⁾

(in thousands)

Year Ended October 31,

2019

2018

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$ 532,367

$  432,518

Adjustments to reconcile net income to net cash provided by

operating activities:

Amortization and depreciation

201,676

209,207

Amortization of capitalized costs to obtain revenue contracts

62,750

-

Stock compensation

155,001

140,032

Allowance for doubtful accounts

11,669

3,368

(Gain) loss on sale of property and investments

(4,052)

(93)

Deferred income taxes

(82,620)

(210,310)

Net changes in operating assets and liabilities, net of

acquired assets and liabilities:

Accounts receivable

(8,575)

(95,785)

Inventories

(19,243)

(66,509)

Prepaid and other current assets

(49,779)

(12,652)

Other long-term assets

(124,895)

(25,908)

Accounts payable and accrued liabilities

(19,280)

49,043

Income taxes

19,777

(103,841)

Deferred revenue

125,717

105,329

Net cash provided by operating activities

800,513

424,399

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sales and maturities of short-term investments

-

12,449

Proceeds from sales of long-term investments

6,361

494

Purchases of long-term investments

(3,245)

(3,561)

Proceeds from sales of property and equipment

-

1,662

Purchases of property and equipment

(198,129)

(98,976)

Cash paid for acquisitions and intangible assets, net of cash acquired

(36,605)

(652,643)

Capitalization of software development costs

(4,259)

(2,950)

Net cash used in investing activities

(235,877)

(743,525)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from credit facilities

192,897

620,635

Repayment of debt

(524,063)

(295,313)

Issuances of common stock

156,364

123,829

Payments for taxes related to net share settlement of equity awards

(57,143)

(45,772)

Purchases of treasury stock

(329,185)

(400,000)

Other

(762)

1,759

Net cash (used in) provided by financing activities

(561,892)

5,138

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

2,782

(11,086)

Net change in cash, cash equivalents and restricted cash

5,526

(325,074)

Cash, cash equivalents and restricted cash, beginning of year

725,001

1,050,075

Cash, cash equivalents and restricted cash, end of year

$ 730,527

$  725,001

(1) Synopsys' fiscal year 2019 and 2018 ended on November 2, 2019 and November 3, 2018, respectively. For presentation purposes, we refer to the closest calendar month end. The first quarter of fiscal 2018 included an extra week.