| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||||||||||
| (dollars in thousands) | ||||||||||||||||
| Six months ended | Three months ended | |||||||||||||||
| June 30, | June 30, | June 30, | March 31, | June 30, | ||||||||||||
| 2021 | 2020 | 2021 | 2021 | 2020 | ||||||||||||
| CASH FLOWS - OPERATING ACTIVITIES | ||||||||||||||||
| Net profit for the period | $ | 61,831 | $ | 37,505 | $ | 31,317 | $ | 30,514 | $ | 21,474 | ||||||
| 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 | 127,535 | 117,299 | 65,482 | 62,053 | 60,268 | |||||||||||
| Effect of exchange rate differences on debentures | (1,994) | (910) | 1,798 | (3,792) | 3,159 | |||||||||||
| Other expense (income), net | (3,227) | (890) | 1,758 | (4,985) | (876) | |||||||||||
| Changes in assets and liabilities: | ||||||||||||||||
| Trade accounts receivable | 12,722 | (1,296) | 18,996 | (6,274) | (12,981) | |||||||||||
| Other assets | (8,983) | 5,122 | (16,065) | 7,082 | (1,998) | |||||||||||
| Inventories | (15,484) | (17,380) | (12,077) | (3,407) | (11,209) | |||||||||||
| Trade accounts payable | (14,568) | (12,950) | (5,302) | (9,266) | (6,751) | |||||||||||
| Deferred revenue and customers' advances | 16,207 | (2,498) | (3,133) | 19,340 | (1,927) | |||||||||||
| Other current liabilities | 19,696 | 10,729 | 12,612 | 7,084 | 13,977 | |||||||||||
| Long-term employee related liabilities | 140 | 2,078 | 247 | (107) | 2,109 | |||||||||||
| Deferred tax, net and other long-term liabilities | (13,212) | (1,870) | (2,383) | (10,829) | 1,358 | |||||||||||
| Net cash provided by operating activities | 180,663 | 134,939 | 93,250 | 87,413 | 66,603 | |||||||||||
| CASH FLOWS - INVESTING ACTIVITIES | ||||||||||||||||
| Investments in property and equipment, net | (105,599) | (125,444) | (56,184) | (49,415) | (62,537) | |||||||||||
| Investments in deposits, marketable securities and other assets, net | (18,666) | (78,786) | (17,055) | (1,611) | 6,570 | |||||||||||
| Net cash used in investing activities | (124,265) | (204,230) | (73,239) | (51,026) | (55,967) | |||||||||||
| CASH FLOWS - FINANCING ACTIVITIES | ||||||||||||||||
| Debt repaid, net | (49,144) | (29,197) | (19,769) | (29,375) | (5,000) | |||||||||||
| Exercise of options | 364 | 1,214 | -- | 364 | 1,127 | |||||||||||
| Net cash used in financing activities | (48,780) | (27,983) | (19,769) | (29,011) | (3,873) | |||||||||||
| EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGE | (3,546) | 506 | (68) | (3,478) | 682 | |||||||||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 4,072 | (96,768) | 174 | 3,898 | 7,445 | |||||||||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 211,683 | 355,561 | 215,581 | 211,683 | 251,348 | |||||||||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 215,755 | $ | 258,793 | $ | 215,755 | $ | 215,581 | $ | 258,793 | ||||||
