| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
| (dollars in thousands) | ||||||||
| Year ended | ||||||||
| December 31, | December 31, | |||||||
| 2022 | 2021 | |||||||
| CASH FLOWS - OPERATING ACTIVITIES | ||||||||
| Net profit for the period | $ | 266,471 | $ | 154,075 | ||||
| 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 | 292,638 | 270,710 | ||||||
| Effect of exchange rate differences and fair value adjustment | 10,362 | 1,138 | ||||||
| Other expense (income), net | 6,934 | (1,461 | ) | |||||
| Changes in assets and liabilities: | ||||||||
| Trade accounts receivable | (15,232 | ) | 14,335 | |||||
| Other assets | 20,427 | (26,731 | ) | |||||
| Inventories | (77,891 | ) | (44,192 | ) | ||||
| Trade accounts payable | (20,893 | ) | (25,004 | ) | ||||
| Deferred revenue and customers' advances | (30,069 | ) | 74,524 | |||||
| Other current liabilities | 61,033 | 16,850 | ||||||
| Long-term employee related liabilities | 2,956 | (2,681 | ) | |||||
| Deferred tax, net and other long-term liabilities | 13,084 | (10,270 | ) | |||||
| Net cash provided by operating activities | 529,820 | 421,293 | ||||||
| CASH FLOWS - INVESTING ACTIVITIES | ||||||||
| Investments in property and equipment, net | (213,537 | ) | (279,260 | ) | ||||
| Investments in deposits, marketable securities and other assets, net | (115,911 | ) | (59,684 | ) | ||||
| Net cash used in investing activities | (329,448 | ) | (338,944 | ) | ||||
| CASH FLOWS - FINANCING ACTIVITIES | ||||||||
| Debt repaid, net | (78,379 | ) | (77,315 | ) | ||||
| Proceeds from an investment in a subsidiary | 11,685 | -- | ||||||
| Exercise of options | 44 | 458 | ||||||
| Net cash used in financing activities | (66,650 | ) | (76,857 | ) | ||||
| EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGE | (3,893 | ) | (6,245 | ) | ||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 129,829 | (753 | ) | |||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 210,930 | 211,683 | ||||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 340,759 | $ | 210,930 | ||||
