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

Three Months

Ended

Year Ended

December 31,

2017

December 31,

2017

December 31,

2016

Cash flows from operating activities

Net income

$

43,653

$

84,936

$

(29,615)

Adjustments to reconcile net income to net cash provided by (used in) operating 
     activities

Depreciation and amortization

7,457

28,146

25,416

Provision for severance benefits

9,019

24,373

14,432

Amortization of debt issuance costs and original issue discount

523

1,987

707

Loss (gain) on foreign currency, net

(46,985)

(77,600)

18,884

Restructuring gain and other

—

(17,010)

(7,785)

Stock-based compensation

722

2,336

3,843

Other

(410)

49

103

Changes in operating assets and liabilities

Accounts receivable, net

(1,969)

(22,210)

285

Inventories, net

(11,358)

(8,077)

(557)

Other receivables

(1,323)

3,981

19,125

Other current assets

(579)

2,318

5,000

Accounts payable

10,142

10,320

(4,163)

Other accounts payable

(3,763)

(12,141)

(6,603)

Accrued expenses

4,439

(12,020)

(16,305)

Deferred revenue

(1,706)

(3,949)

1,674

Other current liabilities

(459)

(1,281)

(5,331)

Other non-current liabilities

(1,043)

(760)

(1,574)

Payment of severance benefits

(1,928)

(21,506)

(15,352)

Other

(371)

(336)

5,447

Net cash provided by (used in) operating activities

4,061

(18,444)

7,631

Cash flows from investing activities

Proceeds from settlement of hedge collateral

2,059

10,615

6,317

Payment of hedge collateral

—

(14,839)

(3,552)

Proceeds from disposal of plant, property and equipment

81

18,834

688

Purchase of plant, property and equipment

(13,392)

(32,661)

(18,727)

Payment for intellectual property registration

(230)

(1,207)

(1,049)

Collection of guarantee deposits

36

1,462

619

Payment of guarantee deposits

—

(41)

(193)

Other

70

94

23

Net cash used in investing activities

(11,376)

(17,743)

(15,874)

Cash flows from financing activities

Proceeds from issuance of senior notes

—

86,250

—

Payment of debt issuance costs

—

(5,902)

—

Proceeds from exercise of stock options

353

3,744

1,732

Acquisition of treasury stock

—

(11,401)

—

Net cash provided by financing activities

353

72,691

1,732

Effect of exchange rates on cash and cash equivalents

7,112

8,716

(1,016)

Net increase (decrease) in cash and cash equivalents

150

45,220

(7,527)

Cash and cash equivalents

Beginning of the period

128,425

83,355

90,882

End of the period

$

128,575

$

128,575

$

83,355