SYNOPSYS, INC.

Unaudited Condensed Consolidated Statements of Cash Flows ⁽¹⁾

(in thousands)

Nine Months Ended July 31,

2023

2022

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$             871,630

$             826,879

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

Amortization and depreciation

180,033

169,708

Reduction of operating lease right-of-use assets

72,647

65,980

Amortization of capitalized costs to obtain revenue contracts

61,677

54,438

Stock-based compensation

421,949

333,437

Allowance for credit losses

11,937

(4,516)

Deferred income taxes

(166,061)

5,843

Other non-cash

8,649

10,356

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

Accounts receivable

112,511

(121,786)

Inventories

(77,919)

118

Prepaid and other current assets

8,373

(56,075)

Other long-term assets

(116,487)

(20,058)

Accounts payable and accrued liabilities

48,574

(46,356)

Operating lease liabilities

(52,914)

(66,187)

Income taxes

123,924

(60,739)

Deferred revenue

(131,310)

254,353

Net cash provided by operating activities

1,377,213

1,345,395

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sales and maturities of short-term investments

104,139

70,847

Purchases of short-term investments

(102,457)

(73,330)

Proceeds from sales of long-term investments

7,248

582

Purchases of long-term investments

(435)

(7,000)

Purchases of property and equipment

(136,520)

(102,934)

Acquisitions, net of cash acquired

(51,324)

(416,323)

Capitalization of software development costs

(2,204)

(1,970)

Other

—

(1,200)

Net cash used in investing activities

(181,553)

(531,328)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayment of debt

(2,603)

(76,838)

Issuances of common stock

164,841

161,416

Payments for taxes related to net share settlement of equity awards

(198,969)

(149,130)

Purchase of equity forward contract

(45,000)

(40,000)

Purchases of treasury stock

(860,724)

(717,266)

Other

(122)

(3,413)

Net cash used in financing activities

(942,577)

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

14,997

(38,155)

Net change in cash, cash equivalents and restricted cash

268,080

(49,319)

Cash, cash equivalents and restricted cash, beginning of year

1,419,864

1,435,183

Cash, cash equivalents and restricted cash, end of period

$          1,687,944

$          1,385,864

(1) Synopsys' third quarter of fiscal year 2023 and 2022 ended on July 29, 2023 and July 30, 2022, respectively. For presentation
purposes, we refer to the closest calendar month end.