| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | |||||||
| CONSOLIDATED SOURCES AND USES REPORT (UNAUDITED) | |||||||
| (dollars in thousands) | |||||||
| Three months ended | |||||||
| March 31, | December 31, | March 31, | |||||
| 2023 | 2022 | 2022 | |||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | $ 340,759 | $ 390,369 | $ 210,930 | ||||
| Net cash provided by operating activities | 72,727 | 132,750 | 136,571 | ||||
| Investments in property and equipment, net | (105,245 | ) | (38,186 | ) | (80,840 | ) | |
| Proceeds from an investment in a subsidiary | 1,932 | 6,216 | -- | ||||
| Debt repaid, net | (28,796 | ) | (11,465 | ) | (30,539 | ) | |
| Effect of Japanese Yen exchange rate change over cash balance | (637 | ) | 11,498 | (3,071 | ) | ||
| Investments in short-term deposits, marketable securities and other assets, net | 24,194 | (150,423 | ) | (29,567 | ) | ||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ 304,934 | $ 340,759 | $ 203,484 | ||||
| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
| (dollars in thousands) | |||||||
| Three months ended | |||||||
| March 31, | December 31, | March 31, | |||||
| 2023 | 2022 | 2022 | |||||
| CASH FLOWS - OPERATING ACTIVITIES | |||||||
| Net profit for the period | $ 81,368 | $ 85,842 | $ 55,774 | ||||
| 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 | 62,387 | 79,893 | 70,780 | ||||
| Effect of exchange rate differences and fair value adjustment | (926 | ) | 9,312 | (1,330 | ) | ||
| Other expense (income), net | 815 | (2,923 | ) | 1,347 | |||
| Changes in assets and liabilities: | |||||||
| Trade accounts receivable | 7,413 | 12,380 | (35,181 | ) | |||
| Other assets | (1,138 | ) | 9,381 | 13,874 | |||
| Inventories | (57,420 | ) | (23,423 | ) | (18,328 | ) | |
| Trade accounts payable | 44,542 | (57,952 | ) | 30,595 | |||
| Deferred revenue and customers' advances | (15,470 | ) | (2,517 | ) | 3,385 | ||
| Other current liabilities | (45,053 | ) | 14,231 | 15,103 | |||
| Long-term employee related liabilities | 371 | 2,819 | 331 | ||||
| Deferred tax, net and other long-term liabilities | (4,162 | ) | 5,707 | 221 | |||
| Net cash provided by operating activities | 72,727 | 132,750 | 136,571 | ||||
| CASH FLOWS - INVESTING ACTIVITIES | |||||||
| Investments in property and equipment, net | (105,245 | ) | (38,186 | ) | (80,840 | ) | |
| Investments in deposits, marketable securities and other assets, net | 24,194 | (150,423 | ) | (29,611 | ) | ||
| Net cash used in investing activities | (81,051 | ) | (188,609 | ) | (110,451 | ) | |
| CASH FLOWS - FINANCING ACTIVITIES | |||||||
| Debt repaid, net | (28,796 | ) | (11,465 | ) | (30,539 | ) | |
| Proceeds from an investment in a subsidiary | 1,932 | 6,216 | -- | ||||
| Exercise of options | -- | -- | 44 | ||||
| Net cash used in financing activities | (26,864 | ) | (5,249 | ) | (30,495 | ) | |
| EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGE | (637 | ) | 11,498 | (3,071 | ) | ||
| DECREASE IN CASH AND CASH EQUIVALENTS | (35,825 | ) | (49,610 | ) | (7,446 | ) | |
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 340,759 | 390,369 | 210,930 | ||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ 304,934 | $ 340,759 | $ 203,484 | ||||
