SYNOPSYS, INC.

Unaudited Consolidated Statements of Cash Flows ⁽¹⁾

(in thousands)

Three Months Ended

January 31,

2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income attributed to Synopsys

$            162,345

$            104,061

Adjustments to reconcile net income to net cash provided by

Amortization and depreciation

50,628

52,232

Reduction of operating lease right-of-use assets

20,974

23,201

Amortization of capitalized costs to obtain revenue contracts

15,008

13,762

Stock-based compensation

83,782

51,883

Deferred income taxes

(20,222)

(17,694)

Other non-cash

(3,984)

(629)

Net changes in operating assets and liabilities, net of

acquired assets and liabilities:

Accounts receivable

(7,433)

(241,503)

Inventories

(37,139)

(5,302)

Prepaid and other current assets

(12,289)

8,697

Other long-term assets

(50,385)

(27,103)

Accounts payable and accrued liabilities

(171,137)

(132,814)

Operating lease liabilities

(20,707)

(20,979)

Income taxes

12,226

5,039

Deferred revenue

152,291

196,969

Net cash provided by operating activities

173,958

9,820

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of long-term investments

-

(2,500)

Purchases of property and equipment

(27,779)

(54,605)

Cash paid for acquisitions, net of cash acquired

(74,670)

(75,388)

Capitalization of software development costs

(1,011)

(1,065)

Net cash used in investing activities

(103,460)

(133,558)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from credit facilities

-

196,490

Repayment of debt

(5,694)

(3,750)

Issuances of common stock

15,092

14,982

Payments for taxes related to net share settlement of equity awards

(49,591)

(14,242)

Purchase of equity forward contract

(50,000)

(20,000)

Purchases of treasury stock

(202,871)

(80,000)

Net cash (used in) provided by financing activities

(293,064)

93,480

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

10,001

2,013

Net change in cash, cash equivalents and restricted cash

(212,565)

(28,245)

Cash, cash equivalents and restricted cash, beginning of year

1,237,970

730,527

Cash, cash equivalents and restricted cash, end of period

$         1,025,405

$            702,282

(1) Synopsys' first quarter of fiscal year 2021 and 2020 ended on January 30, 2021 and February 1, 2020, respectively.
For presentation purposes, we refer to the closest calendar month end.