SYNOPSYS, INC.

Unaudited Condensed Consolidated Statements of Cash Flows ⁽¹⁾

(in thousands)

Six Months Ended April 30,

2024

2023

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$            735,296

$            538,575

Adjustments to reconcile net income to net cash provided by operating activities:

Amortization and depreciation

123,886

116,922

Reduction of operating lease right-of-use assets

48,179

48,073

Amortization of capitalized costs to obtain revenue contracts

37,912

39,588

Stock-based compensation

358,487

277,485

Allowance for credit losses

9,987

6,134

Gain on sale of strategic investments

(55,077)

—

Amortization of bridge financing costs

7,085

—

Deferred income taxes

(170,854)

(125,090)

Other non-cash

(2,607)

4,972

Net changes in operating assets and liabilities, net of acquired assets and assumed liabilities:

Accounts receivable

20,889

9,289

Inventories

(60,518)

(48,648)

Prepaid and other current assets

(191,595)

49,437

Other long-term assets

(104,551)

(75,324)

Accounts payable and accrued liabilities

(142,086)

(162,840)

Operating lease liabilities

(48,709)

(31,634)

Income taxes

(229,536)

94,587

Deferred revenue

52,612

76,165

Net cash provided by operating activities

388,800

817,691

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sales and maturities of short-term investments

63,159

67,717

Purchases of short-term investments

(65,861)

(68,738)

Proceeds from sales of strategic investments

55,696

7,248

Purchases of strategic investments

(860)

—

Purchases of property and equipment

(78,763)

(91,368)

Acquisitions, net of cash acquired

(139,557)

(41,324)

Capitalization of software development costs

—

(1,247)

Net cash used in investing activities

(166,186)

(127,712)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayment of debt

(1,303)

(1,294)

Payment of bridge financing and term loan costs

(54,715)

—

Issuances of common stock

115,111

132,808

Payments for taxes related to net share settlement of equity awards

(212,577)

(116,838)

Purchase of equity forward contract

—

(45,000)

Purchases of treasury stock

—

(560,724)

Other

(1,096)

(122)

Net cash used in financing activities

(154,580)

(591,170)

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

2,423

27,708

Net change in cash, cash equivalents and restricted cash

70,457

126,517

Cash, cash equivalents and restricted cash, beginning of year, including cash from discontinued operations

1,441,187

1,419,864

Cash, cash equivalents and restricted cash, end of period, including cash from discontinued operations

1,511,644

1,546,381

Less: Cash, cash equivalents and restricted cash from discontinued operations

6,445

4,140

Cash, cash equivalents and restricted cash from continuing operations

$          1,505,199

$          1,542,241

(1) Synopsys' second quarter of fiscal year 2024 and 2023 ended on May 4, 2024 and April 29, 2023, respectively. For
presentation purposes, we refer to the closest calendar month end. The first quarter of fiscal year 2024 included
one extra week.