| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
| (dollars in thousands) | ||||||||
|
Year ended
| ||||||||
| December 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| CASH FLOWS - OPERATING ACTIVITIES | ||||||||
| Net profit for the period | $ | 519,530 | $ | 266,471 | ||||
| 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 * | 258,021 | 292,638 | ||||||
| Effect of exchange rate differences and fair value adjustment | (1,632 | ) | 10,362 | |||||
| Other expense (income), net | (7,047 | ) | 6,934 | |||||
| Changes in assets and liabilities: | ||||||||
| Trade accounts receivable | (3,160 | ) | (15,232 | ) | ||||
| Other assets | (9,541 | ) | 20,427 | |||||
| Inventories | 8,682 | (77,891 | ) | |||||
| Trade accounts payable | (8,254 | ) | (20,893 | ) | ||||
| Deferred revenue and customers' advances | (35,676 | ) | (30,069 | ) | ||||
| Other current liabilities | (70,163 | ) | 61,033 | |||||
| Long-term employee related liabilities | (1,210 | ) | 2,956 | |||||
| Deferred tax, net and other long-term liabilities | 27,011 | 13,084 | ||||||
| Net cash provided by operating activities ** | 676,561 | 529,820 | ||||||
| CASH FLOWS - INVESTING ACTIVITIES | ||||||||
| Investments in property and equipment, net | (432,184 | ) | (213,537 | ) | ||||
| Investments in deposits, marketable securities and other assets, net | (288,663 | ) | (115,911 | ) | ||||
| Net cash used in investing activities | (720,847 | ) | (329,448 | ) | ||||
| CASH FLOWS - FINANCING ACTIVITIES | ||||||||
| Debt repaid, net | (32,346 | ) | (78,335 | ) | ||||
| Proceeds from an investment in a subsidiary | 1,932 | 11,685 | ||||||
| Net cash used in financing activities | (30,414 | ) | (66,650 | ) | ||||
| EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGE | (5,395 | ) | (3,893 | ) | ||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (80,095 | ) | 129,829 | |||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 340,759 | 210,930 | ||||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 260,664 | $ | 340,759 | ||||
| * Includes amortization of acquired intangible assets and stock based compensation in the amounts of $29,854 and $26,248 for the years ended December 31, 2023 and December 31, 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 for the year ended December 31, 2023
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