SYNOPSYS, INC.
Unaudited Condensed Consolidated Statements of Cash Flows ⁽¹⁾
(in thousands)

Nine Months Ended

July 31,

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income attributed to Synopsys

$            831,094

$            556,069

Adjustments to reconcile net income to net cash provided by

operating activities:

Amortization and depreciation

169,708

151,274

Reduction of operating lease right-of-use assets

65,980

64,920

Amortization of capitalized costs to obtain revenue contracts

54,438

46,973

Stock-based compensation

333,437

248,530

Allowance for credit losses

(4,516)

13,813

Deferred income taxes

5,843

(33,116)

Other non-cash

6,141

2,936

Net changes in operating assets and liabilities, net of

acquired assets and liabilities:

Accounts receivable

(121,786)

188,996

Inventories

118

(51,448)

Prepaid and other current assets

(56,075)

(62,201)

Other long-term assets

(20,058)

(117,922)

Accounts payable and accrued liabilities

(46,356)

51,991

Operating lease liabilities

(66,187)

(61,666)

Income taxes

(60,739)

(29,414)

Deferred revenue

254,353

152,328

Net cash provided by operating activities

1,345,395

1,122,063

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sales and maturities of short-term investments

70,847

1,128

Purchases of short-term investments

(73,330)

(146,082)

Proceeds from sales of long-term investments

582

-

Purchases of long-term investments

(7,000)

(7,591)

Purchases of property and equipment

(102,934)

(66,957)

Cash paid for acquisitions, net of cash acquired

(416,323)

(164,053)

Capitalization of software development costs

(1,970)

(1,517)

Other

(1,200)

(800)

Net cash used in investing activities

(531,328)

(385,872)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayment of debt

(76,838)

(21,637)

Issuances of common stock

161,416

113,976

Payments for taxes related to net share settlement of equity awards

(149,130)

(104,291)

Purchase of equity forward contract

(40,000)

(35,000)

Purchases of treasury stock

(717,266)

(538,082)

Other

(3,413)

(4,375)

Net cash used in financing activities

(825,231)

(589,409)

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

(38,155)

2,985

Net change in cash, cash equivalents and restricted cash

(49,319)

149,767

Cash, cash equivalents and restricted cash, beginning of year

1,435,183

1,237,970

Cash, cash equivalents and restricted cash, end of period

$         1,385,864

$         1,387,737

(1) Synopsys' third quarter of fiscal year 2022 and 2021 ended on July 30, 2022 and July 31, 2021, respectively. For
presentation purposes, we refer to the closest calendar month end.