SYNOPSYS, INC.

Unaudited Condensed Consolidated Statements of Cash Flows ⁽¹⁾

(in thousands)

Twelve Months Ended October 31,

2023

2022

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$          1,218,125

$             978,436

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

Amortization and depreciation

247,120

228,405

Reduction of operating lease right-of-use assets

97,705

89,541

Amortization of capitalized costs to obtain revenue contracts

82,190

73,026

Stock-based compensation

563,292

459,029

Allowance for credit losses

19,932

(3,477)

Deferred income taxes

(211,045)

(36,913)

Other non-cash

13,295

10,188

Net changes in operating assets and liabilities, net of acquired assets and assumed
liabilities:

Accounts receivable

(178,432)

(251,390)

Inventories

(123,752)

1,320

Prepaid and other current assets

(106,396)

(89,983)

Other long-term assets

(100,618)

(15,283)

Accounts payable and accrued liabilities

170,496

(34,066)

Operating lease liabilities

(73,281)

(85,828)

Income taxes

198,078

1,644

Deferred revenue

(113,435)

414,251

Net cash provided by operating activities

1,703,274

1,738,900

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sales and maturities of short-term investments

130,435

93,696

Purchases of short-term investments

(131,079)

(97,245)

Proceeds from sales of long-term investments

8,492

582

Purchases of long-term investments

(435)

(7,000)

Purchases of property and equipment

(189,618)

(136,589)

Acquisitions, net of cash acquired

(297,692)

(422,374)

Capitalization of software development costs

(2,204)

(2,493)

Other

—

(1,200)

Net cash used in investing activities

(482,101)

(572,623)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayment of debt

(2,603)

(76,838)

Issuances of common stock

252,986

237,956

Payments for taxes related to net share settlement of equity awards

(241,408)

(174,005)

Purchase of equity forward contract

(45,000)

—

Purchases of treasury stock

(1,160,724)

(1,100,000)

Other

(122)

(3,413)

Net cash used in financing activities

(1,196,871)

(1,116,300)

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

(2,979)

(65,296)

Net change in cash, cash equivalents and restricted cash

21,323

(15,319)

Cash, cash equivalents and restricted cash, beginning of year

1,419,864

1,435,183

Cash, cash equivalents and restricted cash, end of period

$          1,441,187

$          1,419,864

(1) Synopsys' fiscal year 2023 and 2022 ended on October 28, 2023 and October 29, 2022, respectively. For presentation purposes, we refer
to the closest calendar month end.