SYNOPSYS, INC.

Unaudited Consolidated Statements of Cash Flows ⁽¹⁾

(in thousands)

Twelve Months Ended

October 31,

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$            978,436

$            756,359

Adjustments to reconcile net income to net cash provided by

operating activities:

Amortization and depreciation

228,405

203,676

Reduction of operating lease right-of-use assets

89,541

86,645

Amortization of capitalized costs to obtain revenue contracts

73,026

64,698

Stock-based compensation

459,029

345,272

Allowance for credit losses

(3,477)

18,515

Deferred income taxes

(36,913)

(128,583)

Other non-cash

10,188

15,859

Net changes in operating assets and liabilities, net of

acquired assets and liabilities:

Accounts receivable

(251,390)

201,706

Inventories

1,320

(48,046)

Prepaid and other current assets

(89,983)

(102,174)

Other long-term assets

(15,283)

(153,037)

Accounts payable and accrued liabilities

(34,066)

125,133

Operating lease liabilities

(85,828)

(82,581)

Income taxes

1,644

28,855

Deferred revenue

414,251

160,325

Net cash provided by operating activities

1,738,900

1,492,622

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sales and maturities of short-term investments

93,696

12,850

Purchases of short-term investments

(97,245)

(161,732)

Proceeds from sales of long-term investments

582

-

Purchases of long-term investments

(7,000)

(7,591)

Purchases of property and equipment

(136,589)

(93,764)

Acquisitions, net of cash acquired

(422,374)

(296,017)

Capitalization of software development costs

(2,493)

(1,976)

Other

(1,200)

(800)

Net cash used in investing activities

(572,623)

(549,030)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayment of debt

(76,838)

(28,061)

Issuances of common stock

237,956

210,719

Payments for taxes related to net share settlement of equity
awards

(174,005)

(138,950)

Purchase of equity forward contract

-

(35,000)

Purchases of treasury stock

(1,100,000)

(753,081)

Other

(3,413)

(4,375)

Net cash used in financing activities

(1,116,300)

(748,748)

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

(65,296)

2,369

Net change in cash, cash equivalents and restricted cash

(15,319)

197,213

Cash, cash equivalents and restricted cash, beginning of year

1,435,183

1,237,970

Cash, cash equivalents and restricted cash, end of period

$         1,419,864

$         1,435,183

(1) Synopsys' fiscal year 2022 and 2021 ended on October 29, 2022 and October 30, 2021, respectively. For presentation
purposes, we refer to the closest calendar month end.