| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||||||
| (dollars in thousands) | |||||||||||
| Three months ended | |||||||||||
| September 30, | June 30, | September 30, | |||||||||
| 2024 | 2024 | 2023 | |||||||||
| CASH FLOWS - OPERATING ACTIVITIES | |||||||||||
| Net profit for the period | $ | 54,840 | $ | 56,750 | $ | 337,737 | |||||
| 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 * | 65,348 | 65,567 | 66,877 | ||||||||
| Effect of exchange rate differences and fair value adjustment | (425 | ) | 625 | 3,044 | |||||||
| Other expense (income), net | 6,289 | -- | (21 | ) | |||||||
| Changes in assets and liabilities: | |||||||||||
| Trade accounts receivable | (27,486 | ) | (7,227 | ) | 12,529 | ||||||
| Other assets | 12,785 | 3,141 | (4,099 | ) | |||||||
| Inventories | 14,093 | 17,744 | 22,477 | ||||||||
| Trade accounts payable | 4,646 | (19,741 | ) | (58,107 | ) | ||||||
| Deferred revenue and customers' advances | (2,049 | ) | (2,091 | ) | 419 | ||||||
| Other current liabilities | (2,178 | ) | 274 | (3,885 | ) | ||||||
| Other long-term liabilities | (1,120 | ) | (1,957 | ) | 25,271 | ||||||
| Net cash provided by operating activities ** | 124,743 | 113,085 | 402,242 | ||||||||
| CASH FLOWS - INVESTING ACTIVITIES | |||||||||||
| Investments in property and equipment, net | (127,624 | ) | (112,615 | ) | (101,080 | ) | |||||
| Deposits and marketable securities, net | 19,412 | 17,443 | (318,497 | ) | |||||||
| Net cash used in investing activities | (108,212 | ) | (95,172 | ) | (419,577 | ) | |||||
| CASH FLOWS - FINANCING ACTIVITIES | |||||||||||
| Debt received (repaid), net | (16,402 | ) | (10,439 | ) | 15,493 | ||||||
| Net cash provided by (used in) financing activities | (16,402 | ) | (10,439 | ) | 15,493 | ||||||
| EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGE | 5,537 | (2,658 | ) | (1,537 | ) | ||||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 5,666 | 4,816 | (3,379 | ) | |||||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 265,313 | 260,497 | 318,195 | ||||||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 270,979 | $ | 265,313 | $ | 314,816 | |||||
| * Includes amortization of acquired intangible assets and stock based compensation in the amounts of $9,059, $8,229 and $8,389 for the 3 months periods ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively. | |||||||||||
| ** Merger-contract termination fee received from Intel during the third quarter of 2023, net of cost, in the amount of $313,501 was included within the net cash provided by operating activities for the three months ended September 30, 2023. | |||||||||||
