SYNOPSYS, INC.

Unaudited Consolidated Statements of Cash Flows ⁽¹⁾

(in thousands)

Six Months Ended

April 30,

2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income attributed to Synopsys

$            357,423

$            213,981

Adjustments to reconcile net income to net cash provided by

Amortization and depreciation

100,066

105,078

Reduction of operating lease right-of-use assets

42,711

39,513

Amortization of capitalized costs to obtain revenue contracts

30,475

28,279

Stock-based compensation

163,368

108,318

Allowance for doubtful accounts

10,051

9,982

Deferred income taxes

(16,461)

(37,681)

Other non-cash

(401)

97

Net changes in operating assets and liabilities, net of

acquired assets and liabilities:

Accounts receivable

157,637

(84,533)

Inventories

(38,305)

(25,237)

Prepaid and other current assets

(45,972)

(5,889)

Other long-term assets

(97,519)

(38,378)

Accounts payable and accrued liabilities

(96,798)

(78,989)

Operating lease liabilities

(41,105)

(32,432)

Income taxes

(8,386)

1,270

Deferred revenue

183,512

186,360

Net cash provided by operating activities

700,296

389,739

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of long-term investments

-

(2,762)

Purchases of property and equipment

(44,060)

(80,663)

Cash paid for acquisitions, net of cash acquired

(74,626)

(151,178)

Capitalization of software development costs

(1,264)

(2,130)

Other 

(800)

-

Net cash used in investing activities

(120,750)

(236,733)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from credit facilities

-

276,490

Repayment of debt

(13,194)

(178,437)

Issuances of common stock

103,203

98,361

Payments for taxes related to net share settlement of equity awards

(54,664)

(17,105)

Purchase of equity forward contract

-

(20,000)

Purchases of treasury stock

(398,082)

(180,000)

Other

(1,000)

-

Net cash used in financing activities

(363,737)

(20,691)

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

6,457

(4,424)

Net change in cash, cash equivalents and restricted cash

222,266

127,891

Cash, cash equivalents and restricted cash, beginning of year

1,237,970

730,527

Cash, cash equivalents and restricted cash, end of period

$         1,460,236

$            858,418

(1) Synopsys' second quarter of fiscal year 2021 and 2020 ended on May 1, 2021 and May 2, 2020, respectively. For presentation purposes, we refer to the closest calendar month end.