| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED SOURCES AND USES REPORT (UNAUDITED) | ||||||||||
| (dollars in thousands) | ||||||||||
| T h r e e m o n t h s e n d e d | ||||||||||
| March 31, | December 31, | March 31, | ||||||||
| 2019 | 2018 | 2018 | ||||||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | $ | 385,091 | $ | 464,446 | $ | 445,961 | ||||
| Net cash provided by operating activities | 74,868 | 91,496 | 75,001 | |||||||
| Investments in property and equipment, net | (41,718 | ) | (48,654 | ) | (40,047 | ) | ||||
| Exercise of options, net | 397 | 9 | 658 | |||||||
| Debt repaid, net | (3,074 | ) | (2,924 | ) | (6,656 | ) | ||||
| Effect of Japanese Yen exchange rate change over cash balance | (740 | ) | 3,844 | 4,707 | ||||||
| Investments in short-term deposits, marketable securities and other assets, n et | (6,726 | ) | (123,126 | ) | (14,963 | ) | ||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 408,098 | $ | 385,091 | $ | 464,661 | ||||
| FREE CASH FLOW | $ | 33,150 | $ | 42,842 | $ | 34,954 | ||||
| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||||
| (dollars in thousands) | |||||||||
| Three months ended | |||||||||
| March 31, | December 31, | March 31, | |||||||
| 2019 | 2018 | 2018 | |||||||
| CASH FLOWS - OPERATING ACTIVITIES | |||||||||
| Net profit for the period | $ | 26,400 | $ | 36,515 | $ | 27,181 | |||
| 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 | 52,014 | 54,157 | 53,977 | ||||||
| Effect of indexation, translation and fair value measurement on debt | 4,001 | (4,042 | ) | (1,740 | ) | ||||
| Other expense (income), net | (17 | ) | 4,006 | (22 | ) | ||||
| Changes in assets and liabilities: | |||||||||
| Trade accounts receivable | 18,606 | 10,933 | 8,089 | ||||||
| Other assets | (3,705 | ) | 3,096 | 3,370 | |||||
| Inventories | (3,395 | ) | (9,702 | ) | (2,692 | ) | |||
| Trade accounts payable | (2,651 | ) | (4,783 | ) | (6,313 | ) | |||
| Deferred revenue and customers' advances | (10,685 | ) | 8,768 | (712 | ) | ||||
| Other current liabilities | (4,803 | ) | (7,239 | ) | (4,219 | ) | |||
| Long-term employee related liabilities | 68 | (361 | ) | (387 | ) | ||||
| Deferred tax, net and other long-term liabilities | (965 | ) | 148 | (1,531 | ) | ||||
| Net cash provided by operating activities | 74,868 | 91,496 | 75,001 | ||||||
| CASH FLOWS - INVESTING ACTIVITIES | |||||||||
| Investments in property and equipment, net | (41,718 | ) | (48,654 | ) | (40,047 | ) | |||
| Investments in deposits, marketable securities and other assets, net | (6,726 | ) | (123,126 | ) | (14,963 | ) | |||
| Net cash used in investing activities | (48,444 | ) | (171,780 | ) | (55,010 | ) | |||
| CASH FLOWS - FINANCING ACTIVITIES | |||||||||
| Debt repaid, net | (3,074 | ) | (2,924 | ) | (6,656 | ) | |||
| Exercise of options | 397 | 9 | 658 | ||||||
| Net cash used in financing activities | (2,677 | ) | (2,915 | ) | (5,998 | ) | |||
| EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGE | (740 | ) | 3,844 | 4,707 | |||||
| INC REASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 23,007 | (79,355 | ) | 18,700 | |||||
| CAS H AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 385,091 | 464,446 | 445,961 | ||||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 408,098 | $ | 385,091 | $ | 464,661 | |||
