Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Synopsys Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019	Oct 31, 2018
Net income	1,218,125)	978,436)	756,359)	663,447)	532,367)	432,518)
Amortization and depreciation	247,120)	228,405)	203,676)	209,986)	201,676)	209,207)
Reduction of operating lease right-of-use assets	97,705)	89,541)	86,645)	82,895)	—)	—)
Amortization of capitalized costs to obtain revenue contracts	82,190)	73,026)	64,698)	61,185)	62,750)	—)
Stock-based compensation	563,292)	459,029)	345,272)	248,584)	155,001)	140,032)
Allowance for credit losses	19,932)	(3,477)	18,515)	20,875)	11,669)	3,368)
Deferred income taxes	(211,045)	(36,913)	(128,583)	(111,526)	(82,620)	(210,310)
Other non-cash	13,295)	10,188)	15,859)	4,325)	(4,052)	(93)
Accounts receivable	(178,432)	(251,390)	201,706)	(236,806)	(8,575)	(95,785)
Inventories	(123,752)	1,320)	(48,046)	(55,024)	(19,243)	(66,509)
Prepaid and other current assets	(106,396)	(89,983)	(102,174)	(11,298)	(49,779)	(12,835)
Other long-term assets	(100,618)	(15,283)	(153,037)	(83,367)	(124,895)	(25,892)
Accounts payable and accrued liabilities	170,496)	(34,066)	125,133)	113,773)	(19,280)	49,043)
Operating lease liabilities	(73,281)	(85,828)	(82,581)	(78,578)	—)	—)
Income taxes	198,078)	1,644)	28,855)	14,120)	19,777)	(103,841)
Deferred revenue	(113,435)	414,251)	160,325)	148,722)	125,717)	105,329)
Net changes in operating assets and liabilities, net of acquired assets and assumed liabilities	(327,340)	(59,335)	130,181)	(188,458)	(76,278)	(150,490)
Adjustments to reconcile net income to net cash provided by operating activities	485,149)	760,464)	736,263)	327,866)	268,146)	(8,286)
Net cash provided by operating activities	1,703,274)	1,738,900)	1,492,622)	991,313)	800,513)	424,232)
Proceeds from sales and maturities of short-term investments	130,435)	93,696)	12,850)	—)	—)	12,449)
Purchases of short-term investments	(131,079)	(97,245)	(161,732)	—)	—)	—)
Proceeds from sales of long-term investments	8,492)	582)	—)	2,151)	6,361)	494)
Purchases of long-term investments	(435)	(7,000)	(7,591)	(2,762)	(3,245)	(3,561)
Proceeds from sale of property and equipment	—)	—)	—)	—)	—)	1,662)
Purchases of property and equipment	(189,618)	(136,589)	(93,764)	(154,717)	(198,129)	(98,976)
Acquisitions, net of cash acquired	(297,692)	(422,374)	(296,017)	(201,045)	(36,605)	(652,643)
Capitalization of software development costs	(2,204)	(2,493)	(1,976)	(4,045)	(4,259)	(2,950)
Other	—)	(1,200)	(800)	—)	—)	—)
Net cash used in investing activities	(482,101)	(572,623)	(549,030)	(360,418)	(235,877)	(743,525)
Proceeds from credit facilities	—)	—)	—)	276,489)	192,897)	620,635)
Repayment of debt	(2,603)	(76,838)	(28,061)	(288,879)	(524,063)	(295,313)
Issuances of common stock	252,986)	237,956)	210,719)	197,403)	156,364)	123,829)
Payments for taxes related to net share settlement of equity awards	(241,408)	(174,005)	(138,950)	(82,225)	(57,143)	(45,772)
Purchase of equity forward contract	(45,000)	—)	(35,000)	—)	—)	—)
Purchases of treasury stock	(1,160,724)	(1,100,000)	(753,081)	(242,078)	(329,185)	(400,000)
Other	(122)	(3,413)	(4,375)	(1,316)	(762)	1,759)
Net cash provided by (used in) financing activities	(1,196,871)	(1,116,300)	(748,748)	(140,606)	(561,892)	5,138)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(2,979)	(65,296)	2,369)	17,154)	2,782)	(11,086)
Net change in cash, cash equivalents and restricted cash	21,323)	(15,319)	197,213)	507,443)	5,526)	(325,241)
Cash, cash equivalents and restricted cash, beginning of year	1,419,864)	1,435,183)	1,237,970)	730,527)	725,001)	1,048,356)
Cash, cash equivalents and restricted cash, end of year	1,441,187)	1,419,864)	1,435,183)	1,237,970)	730,527)	723,115)

Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).

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Cash flow statement item	Description	The company
Net cash provided by operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	Synopsys Inc. net cash provided by operating activities increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Net cash used in investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	Synopsys Inc. net cash used in investing activities decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Net cash provided by (used in) financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	Synopsys Inc. net cash provided by (used in) financing activities decreased from 2021 to 2022 and from 2022 to 2023.

Synopsys Inc. (NASDAQ:SNPS)

Cash Flow Statement