SYNOPSYS, INC.

Unaudited Consolidated Statements of Cash Flows ⁽¹⁾

(in thousands)

Nine Months Ended

July 31,

2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income attributed to Synopsys

$    556,069

$    466,892

Adjustments to reconcile net income to net cash provided by

Amortization and depreciation

151,274

159,156

Reduction of operating lease right-of-use assets

64,920

62,585

Amortization of capitalized costs to obtain revenue contracts

46,973

44,851

Stock-based compensation

248,530

170,155

Allowance for doubtful accounts

13,813

14,875

(Gain) loss on sale of property and investments

10

(1,994)

Deferred income taxes

(33,116)

(74,374)

Other non-cash

2,926

2,750

Net changes in operating assets and liabilities, net of

acquired assets and liabilities:

Accounts receivable

188,996

(89,667)

Inventories

(51,448)

(20,296)

Prepaid and other current assets

(62,201)

(21,350)

Other long-term assets

(117,922)

(77,860)

Accounts payable and accrued liabilities

51,991

44,313

Operating lease liabilities

(61,666)

(57,968)

Income taxes

(29,414)

6,128

Deferred revenue

152,328

160,966

Net cash provided by operating activities

1,122,063

789,162

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sales and maturities of short-term investments

1,128

-

Purchases of short-term investments

(146,082)

-

Proceeds from sales of long-term investments

-

2,151

Purchases of long-term investments

(7,591)

(2,762)

Purchases of property and equipment

(66,957)

(120,234)

Cash paid for acquisitions, net of cash acquired

(164,053)

(201,045)

Capitalization of software development costs

(1,517)

(3,035)

Other 

(800)

-

Net cash used in investing activities

(385,872)

(324,925)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from credit facilities

-

276,490

Repayment of debt

(21,637)

(284,218)

Issuances of common stock

113,976

123,237

Payments for taxes related to net share settlement of equity awards

(104,291)

(66,985)

Purchase of equity forward contract

(35,000)

-

Purchases of treasury stock

(538,082)

(200,000)

Other

(4,375)

-

Net cash used in financing activities

(589,409)

(151,476)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

2,985

8,700

Net change in cash, cash equivalents and restricted cash

149,767

321,461

Cash, cash equivalents and restricted cash, beginning of year

1,237,970

730,527

Cash, cash equivalents and restricted cash, end of period

$ 1,387,737

$ 1,051,988

(1) Synopsys' third quarter of fiscal year 2021 and 2020 ended on July 31, 2021 and August 1, 2020, respectively. For presentation purposes, we refer to the closest calendar month end.