OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

Year Ended June 30,

2019

2018

2017

Cash flows from operating activities:

Net income for the period

$

285,637

$

242,300

$

1,025,915

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

Depreciation and amortization of intangible assets

470,928

456,929

345,715

Share-based compensation expense

26,770

27,594

30,507

Excess tax expense (benefits) on share-based compensation expense

—

—

(1,534)

Pension expense

4,624

3,738

3,893

Amortization of debt issuance costs

4,330

4,646

5,014

Amortization of deferred charges and credits

—

4,242

6,298

Loss on sale and write down of property and equipment

9,438

2,234

784

Release of unrealized gain on marketable securities to income

—

(841)

—

Deferred taxes

47,425

89,736

(871,195)

Share in net (income) loss of equity investees

(13,668)

(5,965)

(5,952)

Write off of unamortized debt issuance costs

—

155

833

Other non-cash charges

—

—

1,033

Changes in operating assets and liabilities:

Accounts receivable

75,508

(22,566)

(126,784)

Contract assets

(37,623)

—

—

Prepaid expenses and other current assets

(819)

(7,274)

(7,766)

Income taxes and deferred charges and credits

27,291

(31,323)

(1,683)

Accounts payable and accrued liabilities

(21,732)

(91,650)

53,490

Deferred revenue

(1,827)

35,629

3,484

Other assets

(4)

497

(21,699)

Net cash provided by operating activities

876,278

708,081

440,353

Cash flows from investing activities:

Additions of property and equipment

(63,837)

(105,318)

(79,592)

Proceeds from maturity of short-term investments

—

—

9,212

Purchase of Catalyst Repository Systems Inc.

(70,800)

—

—

Purchase of Liaison Technologies

(310,644)

—

—

Purchase of Hightail Inc.

—

(20,535)

—

Purchase of Guidance Software,  net of cash acquired

(2,279)

(229,275)

—

Purchase of Covisint Corporation, net of cash acquired

—

(71,279)

—

Purchase of ECD Business

—

—

(1,622,394)

Purchase of HP Inc. CCM Business

—

—

(315,000)

Purchase of Recommind, Inc.

—

—

(170,107)

Purchase consideration for prior period acquisitions

—

—

(7,146)

Other investing activities

(16,966)

(18,034)

(5,937)

Net cash used in investing activities

(464,526)

(444,441)

(2,190,964)

Cash flows from financing activities:

Excess tax (expense) benefits on share-based compensation expense

—

—

1,534

Proceeds from issuance of long-term debt and revolver

—

1,200,000

481,875

Proceeds from issuance of Common Shares from exercise of stock options and ESPP

57,889

75,935

35,593

Proceeds from issuance of Common shares under public Equity Offering

—

—

604,223

Repayment of long-term debt and revolver

(10,000)

(1,149,620)

(57,880)

Debt issuance costs

(322)

(4,375)

(7,240)

Equity issuance costs

—

—

(19,574)

Purchase of treasury stock

(26,499)

—

(8,198)

Purchase of non-controlling interest

(583)

—

(208)

Payments of dividends to shareholders

(168,859)

(145,613)

(120,581)

Net cash provided by (used in) financing activities

(148,374)

(23,673)

909,544

Foreign exchange gain (loss) on cash held in foreign currencies

(3,826)

(2,186)

1,767

Increase (decrease) in cash and cash equivalents during the period

259,552

237,781

(839,300)

Cash and cash equivalents at beginning of the period

683,991

446,210

1,285,510

Cash and cash equivalents at end of the period

$

943,543

$

683,991

$

446,210

Reconciliation of cash, cash equivalents and restricted cash:

June 30, 2018

June 30, 2017

Cash and cash equivalents

$

941,009

$

682,942

$

443,357

Restricted cash included in Other assets

2,534

1,049

2,853

Total cash, cash equivalents and restricted cash

$

943,543

$

683,991

$

446,210