MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)
(Unaudited)

Year Ended

December 31,

December 31,

2021

2021

2020

Cash flows from operating activities

Net income

$

53,611

$

56,708

$

344,965

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

Depreciation and amortization

3,663

14,239

16,481

Provision for severance benefits

2,768

8,282

16,743

Amortization of debt issuance costs and original issue discount

—

261

2,220

Loss (gain) on foreign currency, net

(175)

32,432

(23,233)

Restructuring and other charges

—

—

3,502

Merger-related costs (income), net

(12,142)

(12,142)

360

Provision for inventory reserves

760

2,244

3,695

Stock-based compensation

1,648

7,704

6,699

Loss on early extinguishment of borrowings, net

—

—

766

Gain on sale of discontinued operations

—

—

(287,117)

Deferred income tax assets

893

918

(44,441)

Other, net

(1,030)

(613)

217

Changes in operating assets and liabilities

Accounts receivable, net

809

7,505

(19,268)

Unbilled accounts receivable, net

—

—

14,260

Inventories

(1,378)

(5,939)

(816)

Other receivables

2,949

(2,338)

6,954

Other current assets

4,464

12,397

13,561

Accounts payable

4,755

(11,437)

3,960

Other accounts payable

(4,084)

(7,813)

(12,000)

Accrued expenses

(765)

(2,406)

(29,116)

Accrued income taxes

8,307

(1)

10,825

Deferred revenue

863

(131)

2,174

Other current liabilities

(104)

1,445

279

Other non-current liabilities

(732)

(1,398)

3,521

Contributions to severance insurance deposit accounts

(5,526)

(5,688)

(11,921)

Payment of severance benefits

(1,907)

(6,679)

(12,076)

Other, net

80

193

(3,724)

Net cash provided by operating activities

57,727

87,743

7,470

Cash flows from investing activities

Proceeds from settlement of hedge collateral

1,219

5,214

13,762

Payment of hedge collateral

(605)

(3,349)

(8,839)

Proceeds from disposal of property, plant and equipment

1,419

1,446

65

Purchase of property, plant and equipment

(18,844)

(32,212)

(36,100)

Payment for intellectual property registration

(159)

(614)

(741)

Collection of guarantee deposits

—

3,192

1,024

Payment of guarantee deposits

(41)

(5,001)

(1,236)

Proceeds from sale of discontinued operations

—

—

350,553

Other, net

16

(114)

(6)

Net cash provided by (used in) investing activities

(16,995)

(31,438)

318,482

Cash flows from financing activities

Repurchase of long-term borrowings

—

—

(224,250)

Proceeds from exercise of stock options

359

4,279

3,918

Acquisition of treasury stock

—

(1,653)

(1,125)

Acquisition of stock under accelerated stock repurchase agreement

(20,073)

(20,073)

—

Payment under accelerated stock repurchase agreement

(17,427)

(17,427)

—

Repayment of financing related to water treatment facility arrangement

(136)

(563)

(546)

Others

(58)

(107)

(278)

Net cash used in financing activities

(37,335)

(35,544)

(222,281)

Effect of exchange rates on cash and cash equivalents

(151)

(21,154)

24,612

Net increase (decrease) in cash and cash equivalents

3,246

(393)

128,283

Cash and cash equivalents at beginning of period

276,301

279,940

151,657

Cash and cash equivalents at end of period

$

279,547

$

279,547

$

279,940