| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | ||||||
| CONSOLIDATED SOURCES AND USES REPORT (UNAUDITED) | ||||||
| (dollars in thousands) | ||||||
| Three months ended | ||||||
| September 30, | June 30, | September 30, | ||||
| 2023 | 2023 | 2022 | ||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | $ 318,195 | $ 304,934 | $ 211,177 | |||
| Net cash provided by operating activities * | 402,242 | 75,494 | 122,402 | |||
| Investments in property and equipment, net | (101,080) | (89,433) | (45,134) | |||
| Debt received (repaid) and others, net | 15,493 | (10,093) | (28,164) | |||
| Proceeds from an investment in a subsidiary | -- | -- | 5,469 | |||
| Effect of Japanese Yen exchange rate change over cash balance | (1,537) | (5,322) | (4,638) | |||
| Investments in short-term deposits, marketable securities and other assets, net | (318,497) | 42,615 | 129,257 | |||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ 314,816 | $ 318,195 | $ 390,369 | |||
| * Merger-contract termination fee received from Intel during the third quarter of 2023, net of cost, in the amount of $313,501 was included within the net cash provided by operating activities. | ||||||
| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
| (dollars in thousands) | |||||||
| Three months ended | |||||||
| September 30, | June 30, | September 30, | |||||
| 2023 | 2023 | 2022 | |||||
| CASH FLOWS - OPERATING ACTIVITIES | |||||||
| Net profit for the period | $ 337,737 | $ 48,706 | $ 66,682 | ||||
| Adjustments to reconcile net profit for the period | |||||||
| to net cash provided by operating activities: | |||||||
| Income and expense items not involving cash flows: | |||||||
| Depreciation and amortization* | 66,877 | 63,579 | 74,958 | ||||
| Effect of exchange rate differences and fair value adjustment | 3,044 | 3,102 | 104 | ||||
| Other expense (income), net | (21) | (149) | 7,950 | ||||
| Changes in assets and liabilities: | |||||||
| Trade accounts receivable | 12,529 | (21,241) | 3,991 | ||||
| Other assets | (4,099) | 2,114 | 527 | ||||
| Inventories | 22,477 | 16,315 | (25,510) | ||||
| Trade accounts payable | (58,107) | (24,712) | (15,951) | ||||
| Deferred revenue and customers' advances | 419 | (10,723) | (16,906) | ||||
| Other current liabilities | (3,885) | (5,479) | 20,725 | ||||
| Long-term employee related liabilities | 191 | 267 | (220) | ||||
| Deferred tax, net and other long-term liabilities | 25,080 | 3,715 | 6,052 | ||||
| Net cash provided by operating activities ** | 402,242 | 75,494 | 122,402 | ||||
| CASH FLOWS - INVESTING ACTIVITIES | |||||||
| Investments in property and equipment, net | (101,080) | (89,433) | (45,134) | ||||
| Investments in deposits, marketable securities and other assets, net | (318,497) | 42,615 | 129,257 | ||||
| Net cash provided by (used in) investing activities | (419,577) | (46,818) | 84,123 | ||||
| CASH FLOWS - FINANCING ACTIVITIES | |||||||
| Debt received (repaid), net | 15,493 | (10,093) | (28,164) | ||||
| Proceeds from an investment in a subsidiary | -- | -- | 5,469 | ||||
| Net cash provided by (used in) financing activities | 15,493 | (10,093) | (22,695) | ||||
| EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGE | (1,537) | (5,322) | (4,638) | ||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (3,379) | 13,261 | 179,192 | ||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 318,195 | 304,934 | 211,177 | ||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ 314,816 | $ 318,195 | $ 390,369 | ||||
| * Includes amortization of acquired intangible assets and stock based compensation in the amounts of $8,389, $7,414 and $7,035 for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively. | |||||||
| ** Merger-contract termination fee received from Intel during the third quarter of 2023, net of cost, in the amount of $313,501 was included within the net cash provided by operating activities. | |||||||
