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

Three Months Ended

Nine Months Ended

September 30,
2020

September 30,
2020

September 30,

2019

Net income (loss)

$

272,962

$

278,384

$

(45,252)

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

Depreciation and amortization

2,854

13,333

24,661

Provision for severance benefits

3,971

14,150

10,491

Amortization of debt issuance costs and original issue discount

619

1,824

1,712

Loss (gain) on foreign currency, net

(19,788)

6,609

50,512

Restructuring and other charges

349

490

470

Provision for inventory reserves

2,226

4,079

9,255

Stock-based compensation

2,046

4,754

1,920

Loss on early extinguishment of long-term borrowings, net

—

—

42

Gain on sale of discontinued operations               

(287,117)

(287,117)

—

Others

196

85

61

Changes in operating assets and liabilities

Accounts receivable, net

(16,145)

(16,583)

(32,812)

Unbilled accounts receivable, net

3,327

14,260

14,208

Inventories

15,450

1,390

(15,576)

Other receivables

6,044

6,111

(4,814)

Other current assets

4,396

9,143

6,356

Accounts payable

(10,103)

(5,156)

27,585

Other accounts payable

(2,136)

(8,034)

(10,074)

Accrued expenses

1,830

1,991

3,831

Accrued income taxes

12,197

12,546

(583)

Other current liabilities

1,372

2,243

(5,766)

Other non-current liabilities

1,630

2,868

808

Payment of severance benefits

(1,616)

(5,888)

(6,195)

Others

(88)

59

(821)

Net cash provided by (used in) operating activities

(5,524)

51,541

30,019

Cash flows from investing activities

Proceeds from settlement of hedge collateral

2,174

8,029

12,625

Payment of hedge collateral

—

(7,841)

(17,024)

Purchase of property, plant and equipment

(7,511)

(16,353)

(16,693)

Payment for intellectual property registration

(191)

(664)

(907)

Collection of guarantee deposits

844

891

539

Payment of guarantee deposits

(40)

(611)

(1,330)

Proceeds from sale of discontinued operations

350,553

350,553

—

Other

5

26

225

Net cash provided by (used in) investing activities

345,834

334,030

(22,565)

Cash flows from financing activities

Repurchase of long-term borrowings

—

—

(1,175)

Proceeds from exercise of stock options

2,027

2,690

1,038

Acquisition of treasury stock

—

(1,021)

(2,588)

Repayment of financing related to water treatment facility arrangement

(135)

(402)

(415)

Repayment of principal portion of lease liabilities

(46)

(165)

(174)

Net cash provided by (used in) financing activities

1,846

1,102

(3,314)

Effect of exchange rates on cash and cash equivalents

7,131

3,781

(5,237)

Net increase (decrease) in cash and cash equivalents

349,287

390,454

(1,097)

Cash and cash equivalents

Beginning of the period

192,824

151,657

132,438

End of the period

$

542,111

$

542,111

$

131,341